Johnson Controls International plc · NYSE:JCI

Johnson Controls International — Tyco International — Investor Day (September 2012)

128 slides from Johnson Controls International's investor day presentation, Sep 18, 2012

1. Slide 1: Investor Day

   Investor Day New York, NY September 18, 2012

2. Slide 2: Forward-Looking Statements / Safe Harbor

   Forward-Looking Statements / Safe Harbor This presentation contains a number of forward-looking statements. Words, and variations of words, such as “expect”, “intend”, “will”, “anticipate”, “believe”, “propose”, “potential”, “continue”, “opportunity”, “estimate”, “project” and similar expressions ar

3. Slide 3: Tyco Investor Day Agenda

   Tyco Investor Day Agenda Tyco Overview George Oliver 40 minutes Business Segment Reviews − Installation & Services Brian McDonald 30 minutes − Fire Protection Products Colleen Repplier 20 minutes − Security Products Mark VanDover 15 minutes − Life Safety Products Mike Ryan 15 minutes BREAK 15 minute

4. Slide 4: Our Leadership Team

   Our Leadership Team George Oliver* CEO Business Leaders Functional Leaders Judy Arun Larry Reinsdorf* Nayar* Costello* General Chief Chief Counsel Financial Human Officer Resources Officer Brian Scott Colleen Mike Ryan Mark McDonald* Clements Repplier Life Safety VanDover Chief Operating Chief Fire

5. Slide 5: Overview

   Overview George Oliver Chief Executive Officer

6. Slide 6: A Combination Of World Class Fire & Security Businesses

   A Combination Of World Class Fire & Security Businesses Security Fire Solutions Protection NA Commercial Fire Protection Security Services “New” International Security Fire Protection Tyco Operations Products Security Products Life Safety “New” We Advance Safety And Security By Finding Smarter

7. Slide 7: The "New" Tyco Uniquely Positioned To Lead The Fire & Security Industry

   The “New” Tyco Uniquely Positioned To Lead The Fire & Security Industry  World’s leading “pure play” Fire & Security company with forecasted 2012 pro-forma revenue* of $10.4B  Market leader in $100 billion fragmented, consolidating space growing in excess of GDP  Industry leading brands and techn

8. Slide 8: Delivering Mission Critical Solutions That Protect People And Assets

   Delivering Mission Critical Solutions That Protect People And Assets Across The Globe We help protect over 3 million commercial, government and residential customers We help protect more than 1,000,000 fire fighters worldwide We help protect a majority of the Fortune 500 companies We help protect 90

9. Slide 9: Respected Industry Brands Known For Quality And Innovation

   Respected Industry Brands Known For Quality And Innovation Customer Quotes: “Tyco is known in the industry we participate in…as the leader in the country and probably the world” “Tyco really is finding new * and better ways to serve customers” “What we’re looking for is a company that brings fire an

10. Slide 10: A Strong Presence In Developed Markets With Accelerating Presence In Growth Markets

    A Strong Presence In Developed Markets With An Accelerating Presence In Key Growth Markets Geographic Mix Forecasted FY12 Pro-forma Revenue* $10.4B  ~50% of our revenue is generated outside of North America Latin Asia  Growth markets represent America Pacific ~11% of total revenue with an 20% Nort

11. Slide 11: Organized In Three Reporting Segments

    Organized In Three Reporting Segments Forecasted 2012 Pro-forma Revenue* $10.4 Billion NA 65% Of Global Installation Service is Products & Services Recurring 20% 38% Installation Service ROW 45% Installation 55% & Services 42% Leadership In Products And Installation Drives Service Growth *Forecasted

12. Slide 12: We Provide An Extensive Range Of Product & Service Offerings

    We Provide An Extensive Range Of Product & Service Offerings Products Installation Services $2.1B Revenue $3.7B Revenue $4.6B Revenue Products & Services  Suppression systems,  Installation of:  Monitoring & maintenance sprinklers, extinguishers, − Electronic security services for: 15 fire & alar

13. Slide 13: We Provide The Most Critical Building Systems

    We Provide The Most Critical Building Systems Life Safety Systems Major Building Fire Data/ HVAC Plumbing Security Electrical Protection Telecom Systems Building System Monitor & Improve Concept Design Implement Certify Life Cycle Service Product & Installation Conversion to Service 13

14. Slide 14: Delivering A Comprehensive Integrated Life Safety Solution

    Delivering A Comprehensive Integrated Life Safety Solution Riker’s Island Fire Detection Fire Fire & Alarm Sprinkler Suppression  Full consultative review and design in 2007  Awarded $20M contract to provide and maintain cohesive, integrated, fire and life safety solution  NYC largest jail facili

15. Slide 15: Multiple Channels Serve Local, Regional & Global Customers

    Multiple Channels Serve Local, Regional & Global Customers Channels To Market Direct Channel 80% 20% Indirect Channel End Users Local Customers Regional Customers Global Customers  Proximity to customers  Responsiveness to  Global scope & scale  Knowledge of local laws, customer at multiple  Br

16. Slide 16: We Are A Leader In A $100 Billion Global And Fragmented Market

    We Are A Leader In A $100 Billion Global And Fragmented Market Products Installation Services Market Size ~$30 Billion ~$40 Billion ~$30 Billion 15 9% 10% 15% Estimated Tyco Global Market Share Other Other Other Market #1-2 #1 #1 Position  Top 5 global players  Fragmented, 65-80%  Fragmented, 65-

17. Slide 17: Favorable Long-Term Growth Trends Driving Demand

    Favorable Long-Term Growth Trends Driving Demand  Expanding middle-class Demographics  Increasing urbanization in growth markets  Modest population growth  Demand for innovation and new applications Technology  Application and systems convergence  Growth markets growing at ~3x the overall mark

18. Slide 18: Our Strengths Position Us To Win

    Our Strengths Position Us To Win  Increased demand for integrated fire & Tyco Strengths & security systems Opportunities Customer  Strong growth in high margin niche markets Demand  Significant growth in emerging markets  Technology leadership  Increased development of fire codes and standards

19. Slide 19: A Proven Track Record Of Operational Improvement

    A Proven Track Record Of Operational Improvement… 290bps Margin Expansion Pro-Forma Revenue & Segment Operating Margin*.  Accelerated new product introductions $10.3 ~$10.4  Increased higher margin service revenue $9.7 $9.6  Focused on project selectivity 12.3%  Improved margins in Europe from m

20. Slide 20: Strategic Areas Of Focus

    Strategic Areas Of Focus 1 2 3 Execute Accelerate Drive Disciplined Organic Productivity Bolt-On Growth Initiatives Acquisitions 20

21. Slide 21: Accelerate Service Growth In Our Direct Channel

    1a Accelerate Service Growth In Our Direct Channel  Leverage existing customer Organic Service Growth* base for growth  Differentiate offerings through innovation  Improve customer service via technology and process enhancements FY09 FY12F FY15F  Utilize global best practices Service Growth Focu

22. Slide 22: Innovation Driving Product Revenue Growth

    1b Innovation Driving Product Revenue Growth R&D Spend $ Millions Focus Areas $158 $188 ~$210  New product and platform $145 development FY09 FY10 FY11 FY12F  Targeted solutions for growth markets Global Products Revenue $ Billions New Products Other Revenue ~$2.1  Differentiated technology $1.8

23. Slide 23: Drive Vertical Market Solutions For Differentiated Growth

    1c Drive Vertical Market Solutions To Create Opportunities For Differentiated Growth Growth Opportunities  Strong demand for existing Tyco capabilities Forecasted FY12 Pro-forma Revenue* = $10.4B  Global and concentrated customer base Retail 10%  Significant opportunity for profitable service rev

24. Slide 24: Accelerate Growth Market Capabilities & Revenue

    1d Accelerate Growth Market Capabilities & Revenue China, India, Brazil & Middle East  Currently operating or selling into 40+ $ Billions growth market countries with annual sales of $1.2B  Focus on China, India, Brazil and Middle East to drive higher growth − Local leadership to drive growth ~$0.

25. Slide 25: Multifaceted Approach To Delivering Performance In Growth Markets

    1d Multifaceted Approach To Delivering Performance In Growth Markets Right Products At The Right Costs  Localization  Influence codes & standards Training & Robust Service Model Education  Productivity initiatives  Service and  Internal maintenance knowledge codes & standards sharing  Monitori

26. Slide 26: Accelerate Growth Through Targeted Acquisitions

    2 Accelerate Growth Through Targeted Acquisitions Broaden Enhance Expand Strengthen Service Technology Product Geographic & Vertical Portfolio Portfolio Reach Solutions  Maintain disciplined approach to acquisitions  Deep pipeline of highly synergistic opportunities with attractive return metrics

27. Slide 27: Bolt-on Acquisitions Have Broadened Our Portfolio

    2 Bolt-on Acquisitions Have Broadened Our Portfolio And Accelerated Growth Platforms Chemguard-Williams Reliance Visonic Fire Protection Products Installation & Services Security Products  Enhances foam and other  Leading installation and  Strengthens wireless chemical suppression fire protection

28. Slide 28: A Centralized Model To Fund Investments In Growth

    3 A Centralized Model To Fund Investments In Growth And Drive Shareholder Value Cost Structure FY12 ~$9.3B Key Initiatives  Leverage scale Purchased  Reduce complexity Materials & 45%  Implement consolidated Services Net Cost strategic sourcing process Efficiency Initiatives Of  Lean/Six Sigma ~

29. Slide 29: Operating As A "Pure Play" Company

    3 Operating As A “Pure Play” Company Driving Savings Simplify Operations With Through Sourcing “Branch in a Box”  Building global sourcing capability  Consolidating facilities and centralizing back office operations − 15+ procurement groups to single global organization − ~1,000 real estate locati

30. Slide 30: Positioned To Accelerate Growth And Expand Margins

    Positioned To Accelerate Growth And Expand Margins Accelerating Growth Over the Next 3 Years Pro-forma Revenue & Segment O.M.*  Sales CAGR of 4-5% ~$12.0 $ Billions − 1% revenue growth 15%-16% equates to 2% EPS growth ~$10.4  Net productivity enhancement $9.7 12.3% of $50 million annually equates

31. Slide 31: Installation & Services

    Installation & Services Brian McDonald Chief Operating Officer Installation & Services

32. Slide 32: Installation & Services At A Glance

    Installation & Services At A Glance  Leading global provider of system design, installation and services  2012 total forecasted revenue* of $8.3B; 55% of which is service − NA Installation & Services $4.0B − ROW Installation & Services $4.3B  Broad geographic reach − Over 1,000 locations in 33 co

33. Slide 33: Comprehensive Portfolio Of Services & Solutions

    Comprehensive Portfolio Of Services & Solutions… Lines of Business Key Brands  Fire detection  Fire suppression  Security systems  Monitoring and * maintenance services With Well Known Leading Brands 33 * Outside North America

34. Slide 34: Serving A Variety Of Customers Across Multiple Verticals

    Serving A Variety Of Customers Across Multiple Verticals Residential and commercial property developers, Commercial financial institutions, food service businesses and commercial enterprises Oil & gas, power generation, mining, petrochemical Industrial and other industries Retail International, regi

35. Slide 35: We Are Positioned To Grow In A Fragmented Market

    We Are Positioned To Grow In A Fragmented Market 9% Industry Tyco  Highly fragmented  Tyco has #1 market with few 12% market position global competitors UTC  Only fully  Top 5 install and Stanley integrated Fire & service players $70B Honeywell Siemens Security company account for less which pro

36. Slide 36: What Differentiates Us

    What Differentiates Us  Brand recognition in the industry with a broad offering of both fire and security products and services  Direct sales and delivery footprint – 8,000 sales representatives; 30,000 technicians  Experienced local management with deep understanding of local customer needs  Li

37. Slide 37: Global Footprint With Local Management

    Global Footprint With Local Management North America Europe Asia 48% of Revenue 22% of Revenue 13% of Revenue Pacific Latin America 9% of Revenue 5% of Revenue Regional Headquarters South Africa Local Branches 3% of Revenue Global Reach And Significant Scale Of Operations 37

38. Slide 38: Installation And Services Life Cycle

    Installation And Services Life Cycle New System Installation Higher Margin Service Monitoring System Sales Design Installation Service Preventive Maintenance Repairs 20+ 1 to 3 Years Years Upgrades Convert Installations To Long-Term Customer Relationships 38

39. Slide 39: Vertical Solutions For High Value Customers

    Vertical Solutions For High Value Customers University Example 1. Control Panel 2. Fire Pumps 9 3.Intrusion 4. Security Detection Cameras 1 7 5. Emergency 6. Kitchen Communications Hoods 2 8 Systems 6 7. Network 8. Control Software 5 3 4 9. Campus-wide Monitoring & Diagnostics Provider Of Life Safet

40. Slide 40: Installation & Services Financial Trends – North America

    Installation & Services Financial Trends – North America Revenue & Operating Margin* Revenue Mix $Billions Revenue Operating Margin $3.9 $3.8 $4.0 ~$4.0 Service (Recurring) 11.6% Installation 10.7% 36% 10.3% 9.6% 47% FY09 FY10 FY11 FY12F 17% Organic Revenue Modestly (8%) (5%) 4% Positive Growth*: Se

41. Slide 41: Installation & Services Financial Trends – Rest of World

    Installation & Services Financial Trends – Rest of World Revenue & Operating Margin* Revenue Mix Revenue Excluding China $Billions Operating Margin Receivables Write-off $4.3 $4.3 $4.5 ~$4.3 Service 11.8% (Recurring) 11.5% Installation 10.4% 9.2% 44% 37% 5.9% FY09 FY10 FY11 FY12F 19% Organic Revenue

42. Slide 42: Installation & Services – Strategic Priorities

    Installation & Services – Strategic Priorities 1 2 Accelerate Service Enhance Service Growth Productivity  Service and product innovation  Improve customer experience  Value differentiation  Advance field technology 3 4 Improve Installation Rationalize Costs & Performance Infrastructure  Projec

43. Slide 43: Accelerate Services Growth – Install To Service

    1 Accelerate Services Growth – Install To Service Value Differentiation Monitoring Inspection & Repair Integration, Preventive Remote Cloud-Based Command Mission Critical Maintenance / Monitoring Diagnostics Services & Control Control Rooms Repair Systems  Drive volume and scale  Service innovatio

44. Slide 44: Enhance Services Productivity

    2 Enhance Services Productivity Remote Diagnostics  Product Customer Experience innovation Customer  IT investments Service Center Technician Mobility  Efficiency applications Advanced  Standard platforms Scheduling Global Metrics  Data analytics First  Standard global processes Time Fix Opera

45. Slide 45: Improve Installation Performance

    3 Improve Installation Performance Bid / Installation Planning Estimating Design Sourcing Negotiation  Relationship  Training  Centers of  Management  OpEx  Project Building  Tools Excellence Approvals  Tyco Management  Project  Sales Products  Metrics Selection Compensation Gaining Effic

46. Slide 46: Rationalize Costs & Infrastructure

    4 Rationalize Costs & Infrastructure Historical Goal Traditional Branch “Branch In A Box” Sales Sales Installation Installation Service Service Processing Billing Branch Branch Branch Branch Collections Customer Contact Centralized Services Technician Dispatch Customer Shared Service Center Services

47. Slide 47: Significant Benefits Realized In The U.K.

    4 Significant Benefits Realized In The U.K. Simplify & Standardize Centralize Automate  Paperwork  Back Office Admin  Data Entry  Pricing  Credit / Collections  Inspection  Planning  Service/Install Planning  Scheduling  Logistics  Small Project Quoting  Call Handling  Call Flow  Share

48. Slide 48: Generating Synergies Within The Fire & Security Businesses In North America

    Generating Synergies Within The Fire & Security 4 Businesses In North America  Higher initial recurring costs due to Dis-Synergies, Net of separation of N.A. residential and Highlighted Cost Savings commercial security businesses − Build-out of IT infrastructure and $ Millions incremental depreciat

49. Slide 49: Installation & Services Summary

    Installation & Services Summary  Market leader in a highly fragmented market with significant upside potential  Strong brand recognition with a comprehensive portfolio of services and solutions  Extensive global direct installation and service footprint with deep local expertise  Continued partn

50. Slide 50: Global Products

    Global Products Colleen Repplier Fire Protection Products

51. Slide 51: Extensive Portfolio of Fire & Security Product Solutions

    Extensive Portfolio of Fire & Security Product Solutions with Leading Technology  2012 forecasted revenue* of $2.1B  Industry leading provider of Fire Detection and Suppression, Electronic Security & Life Safety Products  Well known and respected brands  Strong industry positions with leading te

52. Slide 52: Global Products Consists Of Three Platforms

    Global Products Consists Of Three Platforms Lines of Business Products  Suppression systems Fire  Fire sprinklers & valves Protection  Fire extinguishers Products  Fire detection & alarm systems 55%  Mechanical products Revenue Security  Intrusion Products  Access control  Video surveillance

53. Slide 53: Global Products Is Well Positioned To Win In The Market

    Global Products Is Well Positioned To Win In The Market 9% Industry Tyco  Highly  ~8,400 fragmented 9% employees market Honeywell worldwide UTC  Top 5 global $30B 3M  35 manufacturing players account Global MSA facilities Products for ~25% share Market − 11 in Americas − 15 in EMEA  Innovation

54. Slide 54: Global Products Financial Overview

    Global Products Financial Overview Revenue & Operating Margin* Revenue Operating Margin $ Billions ~$2.1 $1.8 $1.5 $1.5 16.7% 16.5% 16.5% 17.5% FY09 FY10 FY11 FY12F Organic Revenue (13)% (1)% 11% 10% Growth*: Revenue By Geography Growth Targets to FY15F LATAM APAC +8 to 9% 5% 8% revenue CAGR EMEA +3

55. Slide 55: Product Integration Advantage

    Product Integration Advantage Example - Real Time Incident Management Service Center Remote Service Tyco Sprinklers Management (not Fire Control and required in this Suppression scenario) System activation Information 4100ES Cloud Based Server Fire Detection Fire and Dangerous Gas Detection and Equi

56. Slide 56: Fire Protection Products

    Fire Protection Products Colleen Repplier Fire Protection Products

57. Slide 57: Fire Protection Products At a Glance

    Fire Protection Products At a Glance Overview Revenue Mix By Geography  Market leading provider of fire detection LATAM APAC and suppression products 5% 10%  Reputation for providing quality, high NA performance products and innovative 46% solutions EMEA 39%  Diverse customer base in a variety of

58. Slide 58: We Serve Fire Protection Needs Across Multiple Product Categories

    We Serve Fire Protection Needs Across Multiple Product Categories… Special Hazards Water Portables Engineered Pre- Foam Sprinklers Valves Watermist Systems Engineered Nozzle Systems Detection Mechanical Mechanical Fire Metal Framing Panels Detectors Notification Grooved Grooved & Supports An Extensi

59. Slide 59: With Various Applications Across Key Verticals

    …With Various Applications Across Key Verticals… Commercial Residential Storage Institutional Power Oil & Gas Mining 59

60. Slide 60: Around the World

    …Around the World Americas EMEA Asia-Pacific Trade in 35 countries Trade in 122 countries Trade in 33 countries Located in 6 countries Located in 20 countries Located in 9 countries Speak 4 languages Speak 23 languages Speak 22 languages 27 Manufacturing Locations, 50 Distribution Branches And ~4,60

61. Slide 61: Fire Protection Products Outperforming Construction Market

    Fire Protection Products Outperforming Construction Market  Diverse products and customers 1.30 have mitigated the 1.20 impact of slower 1.10 construction spend  1.00 Sales heavily 0.90 driven by codes 0.80 and standards 0.70 0.60  Differentiation of products through 0.50 Percent change in consta

62. Slide 62: Highly Effective Go-To Market Approach Driving Leadership Position

    Highly Effective Go-To Market Approach Driving Leadership Position Tyco Fire Protection Products Industry/Technical Business Development Direct Sales Force Experts Managers Participation & Influence Specifications Sales & Marketing 3rd Party 3rd Party Distributors Contractors Codes & Authorities Eng

63. Slide 63: We Provide Vertical Solutions

    We Provide Vertical Solutions 1. Portable & 2. Design Wheeled Services Units Oil & Gas Facility 3. Foam 4. Chemical Agents & Spill Control Hardware 5. Clean 6. Restaurant Agents Suppression 7. Automatic 8. Mechanical Sprinklers Products 9. Foam 10.Metal Framing & Channel & Pipe Supports Dike Protect

64. Slide 64: R&D Investment Driving New Product Innovation

    R&D Investment Driving New Product Innovation THE NEED THE ENABLING TECHNOLOGIES Tyco Far-Infrared Imaging Flame Tyco Compact Electrically Automatic Fire Detection and Detector Positioned Extinguishing Monitor Suppression on unmanned platforms (Ráječko, Czech Republic) (Great Yarmouth, England) (Nor

65. Slide 65: Fire Protection Products Summary

    Fire Protection Products Summary  Broadest portfolio of fire products in the industry  Industry experts driving innovation and shaping the future  Global reach and integrated solutions focus position us for growth  Solid organic growth complemented by accretive acquisitions  Recovering construc

66. Slide 66: Security Products

    Security Products Mark VanDover Security Products

67. Slide 67: Security Products At A Glance

    Security Products At A Glance Overview Revenue Mix By Geography APAC  Industry leader in access control, video, 4% real time location services and intrusion products LA 9%  Provide most comprehensive range of premium solutions in security industry EMEA NA 29% 58%  Strong market position with larg

68. Slide 68: Our Brands Help Make The World Safer In Many Industries

    Our Brands Help Make The World Safer In Many Industries Around The Globe Worldwide We Help Protect…  Transportation systems on 5 continents  37% of the world’s top 100 retailers  Over 2,000,000 commercial enterprises  Thousands of students in 900+ schools  42% of the Fortune 500 companies 68

69. Slide 69: We Serve Security Needs Across Various Product Categories

    We Serve Security Needs Across Various Product Categories… Intrusion Access Control Cards and Controllers Security Mgmt Panels Keypads Communicators Sensors & Readers Software Detectors Video Real Time Location Systems Network and Digital IP and Analog Monitors and Active RFID Controllers, Tracking

70. Slide 70: Around The World

    …Around The World Americas EMEA Asia-Pacific Trade in 34 countries Trade in 120 countries Trade in 22 countries Located in 6 countries Located in 8 countries Located in region Trade in 4 languages Trade in multiple languages Trade in multiple languages 3 Manufacturing Locations, 9 Distribution Branc

71. Slide 71: Markets & Customers

    Markets & Customers Key Verticals Commercial Residential Retail Transportation Financial Government Healthcare Education External Channel Internal Channel Contractors & Distributors * End Users 71 * Outside of North America

72. Slide 72: R&D Is Key To Driving Innovation And Growth

    R&D Is Key To Driving Innovation And Growth New Product Introductions Revenue & R&D Spend As % Of Total Revenue New Product Introductions 80% 13%  Video Edge Network Video Recorder NPI Revenue % Total Revenue R&D Spend % of Total Revenue Management System 12% 70% 11%  HDVR Hybrid video recording:

73. Slide 73: M&A Is Enabling Next Generation Platforms

    M&A Is Enabling Next Generation Platforms Acquired November 2007 Acquired July 2008 Acquired December 2011 Wireless Technology, Network Video Video Analytics, Market Share, R&D Storage R&D Skill Set Skills, Distribution  Enables seamless  Video for theft prevention  Wireless encryption / migratio

74. Slide 74: Addressing Customer Needs With Integrated Solutions

    Addressing Customer Needs With Integrated Solutions Opportunity To Innovate & Lead In Intelligent Edge Devices & Converged Wireless Solutions 74

75. Slide 75: Security Products Summary

    Security Products Summary  Extensive range of premium solutions in the security industry  Strong market position with large installed base and brand loyalty  New platforms and technology are accelerating growth  R&D investments are driving operating margin expansion and innovation  Attractive v

76. Slide 76: Life Safety Products

    Life Safety Products Mike Ryan Life Safety Products

77. Slide 77: Life Safety At A Glance

    Life Safety At A Glance Overview Revenue Mix By Geography  Market leading provider of life safety LATAM 2% products APAC  Strong market position with leading 10% technologies  Attractive markets with good growth and EMEA 29% NA profit opportunities 59% Total Revenue & Organic Growth Business Driv

78. Slide 78: Why Scott Safety?

    Why Scott Safety?  Brand  Relationships & Trust  Reliable  Technical Innovators  Service Capability 78

79. Slide 79: Product Categories

    Product Categories Technology Expertise Products Differentiation Supplied Air  Product “Ruggedization”  Product Reliability SCBA Compressor Air Line Escape Set  Pneumatics Air Purification  Cost of Ownership  Ambient Air Filtration Mask Filter PAPR Head Tops  Comfort / Aesthetics Detection &

80. Slide 80: Global Product Platform Strategy

    Global Product Platform Strategy Skelmersdale, England  Product Development: − SCBA’s − Escape Respirator’s − Powered Air Respirator’s − Military Gas Masks Shanghai, China  Product Development: − SCBA’s − Portable Gas Monroe, U.S. Detection  Product Development: − NFPA SCBA’s − Escape Respirator’

81. Slide 81: Key Verticals

    Key Verticals  New Ship Builds  Government Spending  Regulatory Requirements  Regulatory Standards  Fleet Management  Product Life Cycle Marine U.S. Fire Service Petro International Chemical Fire Service Oil & Gas Military & Civil  Supply & Demand Defense  Government Spending  Infrastructur

82. Slide 82: Key Product Launches in FY12

    Key Product Launches in FY12 High Pressure SCBA…5500psi, Reduced Weight and Profile  10% reduction in size & weight New Reducer  Lower cost to manufacture & service  Market disrupter  Launched April 2012 Highest Quality SCBA New Branding 5500psi Cylinder SPIRIT; Powered Air Purifier (PAPR)  Erg

83. Slide 83: Key Products In Development

    Key Products In Development NFPA 2013 Compliant SCBA  Higher heat and flame exposure  New voice intelligibility standard Thermal Lens & STI Comms  Universal alarm sounds  Unique features… Thermal Materials − Extended tracking range w/altitude Back Frame & Pressure Reducer Gauge − Bluetooth inter

84. Slide 84: Life Safety Summary

    Life Safety Summary  Industry leading provider of life safety products with strong well known brands  Preferred choice by end users  Investments in R&D driving development of new products  Growth Acceleration Driven By Continued Diversification: – Geography: China, Middle East and Latin America

85. Slide 85: Technology & Innovation

    Technology & Innovation Scott Clements Chief Technology Officer Vertical Market Solutions

86. Slide 86: Technology Trends Impacting Tyco

    Technology Trends Impacting Tyco  World class software development Information  Integrated security/safety platforms Intensity  Signal processing, data & video analytics - Software  Advanced alarm management  Remote connected services Ubiquitous  Wireless networks reduce install costs Networks

87. Slide 87: Tyco's New Innovation Framework - Technology Leadership

    Tyco’s New Innovation Framework - Technology Leadership Enterprise Global Network of Strengthen Technology Technology Management Capabilities Leadership  Office of Chief Technology  Enterprise Capability Mgmt  Benchmark R&D invest level Officer + Innovation Council  Global Center of Excellence 

88. Slide 88: Extend Product Leadership - Increased R&D Investment

    Extend Product Leadership - Increased R&D Investment Is Spurring Strong Revenue Growth Key Points R&D Spend & Related Product Sales $Millions  Underinvesting in product R&D prior to 2009 ~$210  Reinvestment driving 7.5% $188 product revenue CAGR $158 $145 $3,180  Implementing enterprise-level $2,

89. Slide 89: Ubiquitous Networks - Intelligent Edge Devices

    Ubiquitous Networks - Intelligent Edge Devices Power Advanced Data Driven Offerings PowerG Wireless – Robust wireless technology drastically reduces power consumption for battery powered sensors Access Control NFC Mobile Application - Near Field Communications(NFC) enables mobile phone as an access

90. Slide 90: Enterprise Technology Management - Linking Tyco Technologies

    Enterprise Technology Management - Linking Tyco Technologies Creates Unique Solutions Cross Portfolio Integration Examples Key Points  Customer-centric perspective  Enterprise view of Tyco capabilities Advanced Retail Traffic Management Enterprise Retail Video Solution  Amplify Tyco technologies

91. Slide 91: Software Expertise - Enabling Recurring Revenue Services

    Software Expertise - Enabling Recurring Revenue Services Access Control as a Service Key Points  Cloud based Software- as-a-Service (SaaS) Alarm Panel model Internet  Eliminates customer’s Alarm Panel infrastructure costs  Highly scalable Customer Access Alarm Site 1 Panel  Converts one-time sal

92. Slide 92: Vertical Insight - Business Model Innovation in Retail

    Vertical Insight - Business Model Innovation in Retail Tyco Retail Traditional Security Opportunity Operational Performance Opportunity $167B North American Retailer Annual Losses* $43B Retailer Shrink Losses Retailer Out-of-Stock Losses  Traditional value propositions  Expanded value propositions

93. Slide 93: Tyco Retail Solutions – Store Performance Solutions Platform

    Tyco Retail Solutions – Store Performance Solutions Platform Typical Inventory Intelligence Project Impact Financial Impact Shopper Impact  5-10 % sales uplift  Improved shopping experience  95%+ inventory accuracy  Faster check-out  Significant employee theft reduction  Optimized assortment e

94. Slide 94: Vertical Insight - Process Verticals Solution Coverage

    Vertical Insight - Process Verticals Solution Coverage Oil & Gas Marine Mining Capability / Product Category $5.2B Market $4.6B Market $1.8B Market Fire Detection    Fire Suppression    Fire Special Hazards    Life Safety    Command and Control Integration    Remote Diagnostics and Se

95. Slide 95: Profitable Growth Through Innovation

    Profitable Growth Through Innovation  Three Tyco growth acceleration vectors − Increase penetration of high-growth emerging markets − Focus on selected verticals with superior growth potential − Increased innovation and technology investment  Tyco Innovation Framework − Increased product developme

96. Slide 96: Financial Review

    Financial Review Arun Nayar Chief Financial Officer

97. Slide 97: A Foundation of Strength

    A Foundation of Strength Compelling financial profile positions us well for the future  Large, diverse revenue stream provides stability  Solid cash flow generation supports investments  Attractive return on invested capital A great track record of improved financial performance  Demonstrated ma

98. Slide 98: Diverse Revenue Mix Across Economic Cycles

    Diverse Revenue Mix Across Economic Cycles Revenue By Cycle  Service provides predictable revenue 65% Of stream Service is Recurring  Products are early 36% cycle and provide 44% high returns  Products & 20% Installation businesses to benefit from non- residential Non-cyclical (Services) construc

99. Slide 99: Large Revenue Base With Improving Profitability

    Large Revenue Base With Improving Profitability Segment Operating Income & Operating Margin* $ Billions Strong Operating Margin ~$1.3 Improvement $1.2 $1.0 $0.9  Project selectivity 12.3% 12.1%  Productivity and cost reduction initiatives 10.5%  Divestiture of unprofitable businesses 9.4%  Incre

100. Slide 100: Generating Solid Free Cash Flow

     Generating Solid Free Cash Flow Adjusted Free Cash Flow* $680 ~$710 $ Millions $620 $500 FY09 FY10 FY11 FY12F Pro-forma $466 $545 $721 $750 Net Income: 90-100% Free Cash Flow Conversion *Adjusted free cash flow is a non-GAAP measure. For a reconciliation, see appendix. 100 Note: Excludes the Electri

101. Slide 101: A Significant Portion Of Capital Investments Are Growth Related

     A Significant Portion Of Capital Investments Are Growth Related CapEx & Subscriber / Dealer Investments CapEx Subscriber / Dealer Accounts $ Millions ~$440 $377 $391 $329 FY09 FY10 FY11 FY12F Percentage of Revenue: Capex 0.8% 1.2% 1.4% 1.7% Subscriber 3.1% 2.2% 2.4% 2.5% /Dealer 101 Note: Excludes t

102. Slide 102: Improving Working Capital Efficiency

     Improving Working Capital Efficiency Working Capital Days Primary Working Capital & % of Sales 4 Day Reduction $ Billions $1.4 ~$1.3 42 38 14.3 % 12.5 % FY09 FY12F FY09 FY12F Primary Working Capital % Sales Growing Revenue While Strengthening Working Capital Metrics Note: Primary Working Capital inc

103. Slide 103: Attractive Return On Invested Capital

     Attractive Return On Invested Capital Return On Invested Capital* 33% 24% 12% 8% FY09 FY12F ROIC Including Goodwill ROIC Excluding Goodwill Track Record Of Balancing Growth And Return On Capital 103 * FY09 Excludes the Electrical and Metal Product business for which a majority interest was sold on D

104. Slide 104: Financial Outlook By Segment

     Financial Outlook By Segment NA Install & ROW Install Global Segment Service & Service Products Total FY2012F Revenue ~$4.0B ~$4.3B ~$2.1B ~$10.4B Op Margin* ~11.6% ~10.4% ~17.5% ~12.3% Growth to FY15F Revenue CAGR +1 to 2% +5 to 6% +8 to 9% +4 to 5% Op Margin* +150 to 250bps +300 to 400bps +300 to

105. Slide 105: Strong Operating Income & Margin Expansion Into FY15

     Strong Operating Income & Margin Expansion Into FY15  Productivity initiatives − Offset inflationary Segment Operating Income & Margin* headwinds − Fund investments $0.5 $0.4 ~$1.8 − Increase margins ~$1.3 ($0.2) 15% to  Beneficial product 12.3% ($0.2) 16% and service mix FY'12 Savings Inflation R

106. Slide 106: Strong Balance Sheet

     Strong Balance Sheet Summary Capitalization ($B) Pro forma  Significant liquidity Cash $0.4  Expect to maintain balance sheet flexibility to pursue growth Debt* $1.5 opportunities  Annual cash generation comfortably Net Debt $1.1 supports anticipated cash needs  No near term debt maturities – ne

107. Slide 107: Estimated Effective Tax Rate Post-Separation

     Estimated Effective Tax Rate Post-Separation Estimated Post Longer-Term Separation Goal Effective Tax Rate ~20%  Swiss-based parent structure will continue to drive lower structural tax rate relative to peer group  Volatility in the rate quarter over quarter may arise due to “discrete” or one-time

108. Slide 108: Disciplined Capital Allocation Is The Cornerstone Of Our Financial Policies

     Disciplined Capital Allocation Is The Cornerstone Of Our Financial Policies Improving Operating Performance Strategic Bolt-On Return of Capital Acquisitions to Shareholders Organic Productivity Growth Improvements Investments  Growth Markets  Commercial  Technology  Dividends  Technology Front

109. Slide 109: Acquisitions Are An Integral Part Of Our Growth Strategy

     Acquisitions Are An Integral Part Of Our Growth Strategy Target Criteria Additional Value Drivers  Enhance  Fit within our core  Leverage technology competencies acquisitions across portfolio our global footprint  Leadership in key  Expand product markets or regions  Supply Tyco portfolio prod

110. Slide 110: Proven Acquisition Integration Playbook

     Proven Acquisition Integration Playbook Disciplined And Structured Process To Realize Synergy Targets Pre-Close Deal Close / Integration: 100+ Integration Closure & Integration Planning Day One First 100 Days Days Wrap-Up Recommendations  Design Target  Deliver Day 1  Conduct Functional Integrati

111. Slide 111: Track Record of Increasing Dividends

     Track Record of Increasing Dividends  Increased dividends at an 11% CAGR since 2007 Separation  Post-separation quarterly dividend has been approved for the next two quarters − $0.15/share  Payment Dates − November 15, 2012 − February 20, 2013  Expect to propose an annual cash dividend to shareh

112. Slide 112: One Time Separation Costs To Be Completed By 2014

     One Time Separation Costs To Be Completed By 2014 Future separation costs for Tyco expected to approximate $165 million Tyco P&L Costs Tyco Capital Expenditures $Millions $Millions ~$65 ~$45 ~$35 ~$20 FY13 FY14 FY13 FY14 Other Tech Upgrades Rebranding NA Commercial Facilities IT 112 Note: FY13 & FY1

113. Slide 113: Closing Remarks

     Closing Remarks A Foundation of Strength… …On Which We Will Continue To Build  Large, stable revenue base  Grow revenue organically and through acquisitions  History of operating margin improvement  Significant operational efficiencies to expand operating margin  Solid free cash flow generation

114. Slide 114: Closing Comments

     SSS tyco . Closing Comments

115. Slide 115: A Strong Foundation For Continued Growth

     A Strong Foundation For Continued Growth  Diverse business mix across industries, geographies, products and services  Market leader in $100 billion fragmented, consolidating space growing in excess of GDP  Industry leading brands and technologies  Significant scale advantage with over 600 worldw

116. Slide 116: Appendix

     SSS tyco . Appendix

117. Slide 117: Other Financial Information

     Other Financial Information

118. Slide 118: Pro forma Fiscal Year 2012 Earnings Per Share

     Pro forma Fiscal Year 2012 Earnings Per Share FY’12F $ Millions Revenue $10,420 Segment operating income $1,280 Corporate expense ($225) Operating income $1,055 Net interest ($100) Other expense /Non-controlling Interests ($17) Pre-tax operating income $938 Tax (20%) ($188) Net income $750 Earnings

119. Slide 119: Separation Costs Summary

     Separation Costs Summary $ Millions P&L CapEx Total FY12 ~$710 ~$50 ~$760 FY13 ~$65 ~$45 ~$110 FY14 ~$20 ~$35 ~$55 Note: FY13 and FY14 separation costs do not include costs to be incurred by the ADT Corporation

120. Slide 120: Non GAAP Reconciliations

     SSS tyco . Non GAAP Reconciliations

121. Slide 121: FY2011 - Revenue and Operating Income

     FY2011 - Revenue and Operating Income Future Segments* NA Systems ROW Systems Installation & Installation & Global Total Corporate Service Service Products Segments and Other Revenue Revenue (GAAP) $4,022 $4,483 $1,757 $10,262 $347 $10,609 Operating Income NA Systems ROW Systems 0 0 Total Installati

122. Slide 122: FY2010 - Revenue and Operating Income

     FY2010 - Revenue and Operating Income Future Segments* NA ROW Systems Installation Systems Installation Global Total Corporate & Services & Services Products Segments and Other Revenue Net Revenue $3,784 $4,339 $1,529 $9,652 $1,408 $11,060 0 NA ROW 0 0 0 Systems Installation Systems Installation Glo

123. Slide 123: FY2009 - Revenue and Operating Income

     FY2009 - Revenue and Operating Income Future Segments* NA ROW Systems Installation Systems Installation Global Total Corporate Total & Services & Services Products Segments and Other Revenue Net Revenue $3,931 $4,280 $1,537 $9,748 $1,400 $11,148 0 NA ROW 0 0 0 Systems Installation Systems Installati

124. Slide 124: Organic Revenue Growth for the Fiscal Years Ended 2011, 2010 and 2009

     Organic Revenue Growth for the Fiscal Years Ended 2011, 2010 and 2009 Tw elve Months Ended Septem ber 30, 2011 Base Year Adjustm ents Net Revenue for the Adjusted Net Revenue for the Tw elve Months Ended 2010 Base Organic Revenue Tw elve Months Ended Septem ber 24, 2010 (Divestitures) Revenue Foreig

125. Slide 125: Organic Revenue Growth – Global Products

     Organic Revenue Growth for the Fiscal Years Ended 2011, 2010 and 2009 – Global Products Tw elve Months Ended Septem ber 30, 2011 Base Year Adjustm ents Net Revenue for the Adjusted Net Revenue for the Tw elve Months Ended 2010 Base Organic Revenue Tw elve Months Ended Septem ber 24, 2010 (Divestitur

126. Slide 126: Organic Revenue Growth for the Year Ended 2009 - Services

     Organic Revenue Growth for the Year Ended 2009 - Services Twelve Months Ended Base Year Adjustments Net Revenue for the Adjusted Net Revenue for the Twelve Months Ended - Base Organic Revenue Twelve Months Ended - September 25, 2008 (Divestitures) Revenue Foreign Currency Acquisitions Other (1) Sept

127. Slide 127: Non-GAAP Measures

     Non-GAAP Measures Organic revenue, free cash flow (outflow) (FCF), and income from continuing operations, earnings per share (EPS) from continuing operations, operating income, operating margin and corporate expense, in each case “before special items,” are non-GAAP measures and should not be consid

128. Slide 128: Non-GAAP Measures (Cont.)

     Non-GAAP Measures (Cont.) Capital expenditures and dealer generated and bulk account purchases are subtracted because they represent long-term commitments. Cash paid for purchase accounting and holdback liabilities is subtracted because these cash outflows are not available for general corporate use

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