ADT 2007 Annual Report Download - page 101

fire suppression, breathing apparatus, video and access control and intrusion security products. With
2007 net revenue of $1.8 billion, our Safety Products segment comprises 9% of our consolidated net
revenue. In both 2006 and 2005, net revenue totaled $1.7 billion or 10% of our consolidated net
revenue.
Strategy
We intend to accelerate our revenue growth by implementing the following strategies: leveraging
our product development pipeline, which features enhancements and newer technologies in Internet
Protocol, integrated access control, intrusion solutions and new fire suppression technologies; expanding
our presence in emerging markets, such as China, Eastern Europe and India; and pursuing strategic
partnerships and acquisitions in key product areas. We intend to improve our recurring revenue stream
by further integrating our product portfolio with logical security systems and communications services,
as well as by enhancing the inter-operability of our intrusion security, access control, video systems and
fire detection products. We plan to improve our profitability by continuing to move our manufacturing
footprint to low-cost countries and by driving operational excellence and strategic sourcing initiatives.
Services and Products
We manufacture fire suppression products, including water sprinkler systems, portable fire
extinguishers, commercial suppression systems for special hazards including: gas, powder and foam
agents, forestry and hose products used to fight wildfires, and fire-fighting foam and related delivery
devices. We manufacture self-contained breathing apparatus designed for firefighter, industrial and
military use, supplied air respirators, air-purifying respirators, thermal imaging cameras, gas detection
equipment and gas masks. Our breathing apparatus are used by the military forces of several countries
and many U.S. firefighters rely on our Scott Air-Pak brand of self-contained breathing apparatus.
We design and manufacture integrated video surveillance and access control systems to enable
businesses to manage their security and enhance business performance. Our global access control
solutions include: integrated security management systems for enterprise applications, access control
solutions for mid-size applications, alarm management panels, door controllers, readers, keypads and
cards. Our global video system solutions include: digital video management systems, matrix switchers
and controllers, digital multiplexers, programmable cameras, monitors and liquid crystal displays. Our
intrusion security products provide advanced security products for homes and businesses ranging from
burglar alarms to a full range of security systems including alarm control panels, keypads, sensors and
central station receiving equipment used in security monitoring centers.
We also manufacture a number of products for Fire Protection Services and ADT Worldwide for
incorporation into their electronic security systems and fire detection and fire suppression systems.
These products include a wide range of our fire detection and fire suppression products, security video
and access control products, electronic article surveillance and intrusion products.
Customers
Safety Products sells its products primarily through indirect distribution channels around the world.
These business partners sell to customers including contractors that install fire suppression, security and
theft protection systems. Some of our partners are integrators and install the products themselves;
others act as dealers and sell to smaller fire and security contractors. Our end customers for our
breathing apparatus include fire departments, municipal and state governments and military forces.
Customers for our fire sprinkler products include distributors, commercial builders and contractors.
Residential builders, contractors and developers are emerging customers for our sprinkler products
given changing regulatory dynamics.
2007 Financials 9