ADT 2012 Annual Report Download - page 3
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As a pure-play company, we are able to direct all of
our attention to the needs of residential and small-
business security and automation customers. We
also have the agility of a more nimble, focused
organization, allowing us to seize opportunities in a
rapidly evolving consumer technology landscape. We
now possess the freedom and exibility to pursue new
nancial strategies and to leverage our balance sheet
to invest for growth.
We spent the 2012 scal year building the foundation
of a great public company. Among our actions, we:
• Assembled an executive leadership team comprising
the best talent from within Tyco and ADT, supple-
mented with top external talent.
• Developed a value-creation strategy that optimizes
our subscriber business model, in which 90 percent
of our revenue is recurring.
• Rallied our 16,000 team members around new core
values and a vision for the future. As part of that
effort, I personally visited eld locations across the
U.S. and Canada and met with more than 3,000 team
members via town hall and small group meetings.
• Recommitted to delivering the highest standards of
customer service and engaged our team members in
gathering ideas on how to improve the ADT experi-
ence for our 6.4 million customers.
• Pledged to give back and invest in the communities
where we live and work—both because it’s the
right thing to do and because it makes good
business sense.
Throughout this process, we focused on what matters
most to our critical stakeholders—our investors, custom-
ers, team members and communities. As we begin our
rst full year as an independent company, this consider-
ation is at the heart of everything we do.
OUR STRATEGY TO CREATE
LONG-TERM SHAREHOLDER VALUE
In our subscriber business model, ADT creates sharehold-
er value by managing ve key levers to grow protably and
generate a strong return on investment.
Dear Shareholders,
2012 was a landmark year in ADT’s 138-year history. On September 28,
ADT spun off from Tyco International and became an independent
public company, trading on the New York Stock Exchange. We enter this
new phase for our organization as the clear leader in the residential and
small-business electronic security market in the U.S. and Canada, with
the industry’s most prominent brand and with a business model that
provides strong returns and reliable cash flows.
NAREN GURSAHANEY
Chief Executive Ofcer