ADT 2008 Annual Report Download - page 6

7
EDWARD D. BREEN
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
TYCO INTERNATIONAL LTD.
INVESTING TO GROW OUR BUSINESSES
We irmly believe that our inancial and operational strength
gives us the ability to carry out our plans. We will continue to make
substantial investments to grow our businesses and gain market
share, while maintaining a strong balance sheet.
Some of our greatest opportunities are in technology and innovation.
In iscal 2008, we increased our R&D expenditures by 6%, and we
completed a number of “bolt-on” acquisitions to expand our product
and service oerings. Our goal is to be not just a supplier of products
and services, but a provider of value-added solutions for our customers
in each of the three large global industries where we are the market
leader: Electronic Security, Fire Protection and Flow Control. In the
pages of this report, we use the theme “more than…” to highlight some
of the solutions we provide to our customers.
To strengthen the technology oerings in our ADT business, we
purchased FirstService Security in June 2008. Renamed ADT
Advanced Integration, this business provides additional systems
integration capability for our electronic security platform. We also
acquired IntelliVid, a video analytics technology company that expands
the theft prevention and business intelligence solutions we’re able
to oer global customers. In addition, we acquired Vue Technology,
a leading provider of radio frequency identiication (RFID) technology
that nicely complements our Sensormatic business. Finally, we
acquired two franchisees in our Sensormatic business.
At the same time, we have divested businesses no longer considered
to be a strategic it for Tyco. Last year, we generated approximately
$1 billion in cash proceeds from the divestiture of these businesses.
THE CRITICAL ROLE OF EMERGING MARKETS
It’s hard to overstate the importance of emerging markets to the future
of our business. Led by Korea, South Africa, China, India, Argentina
and the Middle East countries, emerging markets accounted for 13%
of Tyco’s revenue and made a major contribution to our organic growth
in 2008. The need for signiicant infrastructure development in these
emerging markets represents an important growth opportunity for
Tyco, and one way we’re investing in them is by establishing R&D
Centers of Excellence in important locations around the world.