Scope conference 2010 in Florida, Bill Stankiewicz attended. www.shipperswarehouse.com

1. Tyco International
Chris Corrado
Scope Supply Chain Conference
12 April 2010

2. About Tyco International
 A diverse portfolio of market-leading businesses in
electronic security, fire, safety services and products, valves
and controls, and other industrial products
 2009 annual revenues of more than $17 billion
 Present in more than 60 countries
 Strong global businesses in attractive market
 Strong balance sheet, cash flow generation and financial
flexibility
 Investing to grow our businesses
– Emerging markets
– Technology and innovation

3. Tyco‟s Five Business Segments
Safety Products Electrical and
ADT Worldwide Metal Products
World‟s largest security and Fire Suppression, Electronic Galvanized steel tubes,
alarm monitoring provider Security and Life Safety ol armored wire & cable and more
World leader Flow control
fire and life products and
safety heat-tracing
solutions
Fire Protection Services Flow Control

4. Market-Leading Businesses in Growing, Global
Industries
2009 Revenue = $17B
Electrical &
Metal
Products
$1.3B
ADT WW
Flow Control
$3.8B $7.0B
Safety
Products Fire
$1.5B Protection
$3.4B

5. Strong Positions in Large, Global
and Fragmented Industries
Global Electronic Global Fire Global Industrial Valves
Security Industry Industry & Controls Industry
$72+B Market $32+B Market $40+B Market
Expected Market Expected Market Expected Market
Growth = 5-6% Growth = 3-4% Growth = 4-5%
Tyco 11%
Tyco 12%
Secom Tyco 5%
UTC
Siemens Emerson
Honeywell Cameron
UTC GE Flowserve
Thousands Thousands of
Siemens Thousands
of Others Others of others
~75% ~75% ~85%
Industry Growth + Market Share = Growth Opportunities
Source: Freedonia, McIlvaine, Industry and Management Estimates

6. Balanced Geographic Presence
Other
Americas
8%  >50% of our revenue is
Asia
generated outside of the United
Pacific States
15%
 Emerging markets represent ~
15% of revenue and grew 20%
Europe
29%
organically in 2009
United States
48%
 We operate in more than 60
countries and serve customers
in over 100 countries
 110,000 employees
Emerging Markets Provide Revenue and Earnings Diversification

7. …Have Achieved Market-Leading Positions
Global leader in security alarm monitoring
Global leader in anti-theft systems
Global leader in fire alarms and services
Global leader in fire suppression systems
U.S. leader in emergency breathing systems
Global leader in video and access control
Global leader in industrial valves and controls
U.S. leader in electrical conduit
A Global Market Leader in Most of Our Businesses

8. Our Business Segments

9. ADT Worldwide
Global provider of
residential and commercial
security systems
2009 revenue of $7.0B
 67% Commercial,
33% Residential
 52% recurring revenue
7.2 million customers
globally
Broad geographic reach
 55% NA, 30% EMEA

10. ADT Has Locations and Monitoring Centers for
Superior Security Service Worldwide
More than 20,000
Service
Technicians
40+ Monitoring
Centers
Worldwide
Countries with ADT coverage
Countries without ADT coverage

11. Fire Protection Services
 2009 revenue of $3.4B;
46% service revenue
 Market-leading industry
position
 Strong global presence
 Diversified customer base
 Broad offering of fire
products and services

12. Fire Protection Services
Product Lines End Markets
Electronic Institutional
Fire alarms, mass notification,  Schools/Universities
hospital nurse call,  Hospitals
integrated systems  Defense
 Government buildings
 Airports
Sprinkler Commercial
Sprinklers, engineered  Hotels
solutions, special hazards,  Retailer
water spray, foam,  Office buildings
gas systems  Shopping centers
 Financial institutions
Industrial
Suppression  Oil & gas
Fire extinguishers,  Manufacturing
specialty systems  Marine
 Mining

13. Safety Products
 2009 revenue of $1.5B
 Market leading provider
of Fire Suppression,
Electronic Security, Life Safety
Products
 Strong market position
with leading
technologies
 Attractive markets with
good growth
 Focus on emerging
market growth

14. Safety Products
Product Lines End Markets
Fire Suppression Institutional
Protecting people and  Schools/Universities
valuable assets from the  Hospitals
threat of fires  Defense
 Government buildings
 Airports
Electronic Security Commercial
Securing homes and  Hotels
businesses from  Retailer
unauthorized intrusions  Office buildings
 Shopping centers
 Financial institutions
Industrial
Life Safety  Oil & gas
Protecting our  Manufacturing
firefighters so they  Marine
can protect you  Mining

15. Electrical & Metal Products
 2009 revenue of $1.3B
 Market leader in steel
tubes and pipes, armored
cable and electrical conduit
products
 Strong, well-known brands
 Purchases and processes
over one million tons of
steel per year

16. Electrical & Metal Products
Business Lines Customers
•Electrical Wholesale
Electrical Distribution
Infrastructure •Home Improvement
Retailers
Solutions
•Wholesale
Steel Tubular & Distribution
Roll Formed •OEMs
Products •Metal Service Centers
•Wholesale
Distribution
Metal Framing •General Contractor
Solutions •OEMs

17. Tyco Flow Control
 2009 revenue of $3.8B
 Global leader in valves,
controls and related
products
 Well-known market-
leading brands
 Geographic and end
market diversity
 End market diversity –
serves a broad range of
industries and
customers

18. Tyco Flow Control
Product Lines End Markets
•Distribution
Water •Storage
Applications •Treatment
•Chemical/Pharma
•Food & Beverage
Process
•Mining & Mineral
Applications Processing
•Oil & Gas
Energy •Power
Applications •Generation

19. Tyco‟s Focus Areas
 Technology and innovation
– R&D centers in emerging markets
– Flow Control engineering centers in India, China and
Holland
 Building service capabilities
– ADT service delivery transformation
– TSP – enhanced customer analytics
– SimplexGrinnell – building a services-led culture
– Flow Control – new service centers near our customers

20. Expanding in Emerging Markets
 Revenue in Emerging Markets
– $2.6B in 2009
 15% of Tyco revenue in 2009
 Solid growth potential
 Investing in products and people

21. Environment, Health & Safety
 Joined Climate RESOLVE program in September 2007
– Set 25% reduction goal of our emissions of
greenhouse gasses
– 50% of greenhouse gasses emitted through our fleet
– Introducing hybrid vehicles into the fleet in 2010
– Utilizing GPS to drive savings
• Improved routing
• Reduced idle time

22. Types of Globalization
 Tyco is a global company with a presence in more than 60
countries throughout the world. We are made up of five
segments whom all have varying needs from a
globalization effort!
 Our globalization models include:
– Establishing plants in low-cost countries and utilizing the local and
regional supply base to support regional and global customers
– Cross-segment and segment IPO Offices in China and India
– Development of suppliers in LCCs…this includes large multi-national
and regional players
– Development of assembly shops in LCCs to leverage labor & skills
– Utilization of top tier contract manufacturers

23. Global Sourcing
International Procurement
Offices (IPOs)
(Offshore Sourcing Teams)
China, India, Eastern Europe, Latin America

24. Global Sourcing Products & Services
Business
IT Enabled
Products Components Process
Services
Outsourcing
Make Buy Buying IT Software Outsource Call
Decisions Components Development Center To India
For In-House
High Level Assembly ERP Back Office Tasks
Assemblies To India, Canada,
Localize Web Applications Philippines
Finished Goods Components In
OEM Products LCC plants Network AP/AR/Payroll
Examples:
Management Accounting
Own Plants or Resource Plastics parts
Contract From USA to China Engineering Service - Help
Resource Metal parts from
Manufacturing India Services - CAD Desks
Current Focus
Leverage Global Cost & Capabilities

25. OpEx Organization - Sourcing
Tyco Operational Excellence
Strategic Sourcing / Supply Chain
Real Estate IT Indirect Direct Ops Strategy Logistics
Planning &
Portfolio Mgmt Fleet / Fuel Fleet / Fuel
Electronics Globalization
Fleet / Fuel Fleet / Fuel
Transportation
Mgmt
Business & Facilities / Facilities / Facilities / Facilities /
Trade
Facilities Metals Outsourcing
Prog. Mgmt Energy Energy Energy Compliance
Energy
Transaction Corporate IT IT / Telecom /
Packaging Contract Mfg Warehousing
Mgmt Services Office Equip
IT Leadership
Temp Labor Pro Services Distribution
Council
HR / Legal HR / Legal
Plastics
Finance & Analysis
Travel Chemicals
Travel
Marketing /
Print
e-enablement
Office Supply /
MRO

26. Strategic Sourcing Philosophy
7-Step Strategic Sourcing Process:
Select Generate Select Negotiate Operationali
Profile the Sustain the
Sourcing Supplier Implementati and Select ze Supplier
Category Results
1 2 Strategy 3 Portfolio 4 on Path 5 Suppliers 6 Integration 7
 Understand  Create “go to  Open supply  Decide most  Conduct  Operationalize  Monitor market
internal spend market” base and appropriate aggressive supplier and supplier
and external approach identify all execution negotiations agreements performance
market viable suppliers strategy and select
suppliers
Focus on Tyco’s Spend Supplier Engagement Implementation
and the Market & Negotiations
Common Approach Deployed Across Tyco

27. Global Sourcing Regions & Commodities
Asia
• Electronic components
• Cables/Harnesses
• Stamping
• Molded parts / Tooling
Eastern • PCB / PCBA
Europe • Textile
• Contract mfg. - Hi Volume
• Raw material • Castings
• Metal parts fabrication
• Castings China
• Tooling
India
Mexico / Latin
• Molds & Dies, Molded Parts
America • Metal parts / Machining
• Chemicals / Resins
• Metal parts
• IT & ITES
• Cable Harnesses
• Textiles
• Assemblies
• Castings & Forgings
Selecting Regions Based on Core Competencies,
Total Cost, Quality, Delivery & Logistics

28. Offshore Sourcing Teams - IPOs
2004-05 2006-07 2008-09
C
H
I
N
A
Team Process/Tools Supplier Strategy
• Development of functional strength • Standardize Sourcing Process • Execution
• Focus on major commodities • Standard tools / metrics •Optimize supplier base
• Supplier identification • Audit credibility • Develop strategic alliances
• Global Sourcing only • Talent development • Consolidate sourcing teams
I
N
D
I
A
Developing Leadership Talent and Core Competency
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29. LCC Sourcing Organization
Roles & Responsibilities
‘Pitching’ ‘Catching’ ‘Catching’
Leaders In Leaders In Each Commodity Teams
HCC LCC In LCC
•Build LCC funnel / Business case •Build Country funnel / •Commodity Expertise
Business case
•Cross functional interface •Price Negotiation
•Ensure supplier capability/
•Ensure cross-functional readiness •Supplier Audits / Development
resource allocation
•Qualification /Phase in/ •Project Execution
•% LCC Spend target overlap
•Part of Global category
•Total LCC savings target •% LCC Spend target teams
•Budgeting – Tooling, Switching •Total LCC savings target •%LCC by category
cost
•Six Sigma / Transfer process •% savings by category
•Manage phase out of pitching
suppliers • Program EXECUTION •Delivery, Quality metrics
Segment Specific Common Across Segments
Project execution Financial Analysis and Report, Logistics Support/management, Support IT,Admin.
Global Business team Needs, Quality Systems/Support, Supplier Selection / Development, Negotiate
Interface Contracts, Compliance, Six Sigma / Corrective Actions, Part of global category team,
Drive Savings E Auctions – Tools/Training, Supplier Score Card
Accountability & Goal Alignment

30. Transformation To IPOs
 Created shared service IPOs & Integrated
 Individual Tyco businesses “doing their local teams - similar structure in all IPOs
own thing”... literally meeting in
supplier‟s lobbies.
 Developing talent - Career path
 Duplicating supplier management
Audit/selection/development  Global Best in class processes used by all
 Adding business to suppliers with poor
IPOs - Developed with the Business
performance
 One face to suppliers – Annual Supplier
 Missing volume leverage
day
 Conflicting priorities – confusing
suppliers  Global linkages - Visibility
 Qualification processes , monitoring and
management programs ranged from  Emerging Markets - Organic Growth
none to near Best-in-Class. engines

31. IPO Structure
Regional Director
IPO
China / India / EE / LatAM
Sourcing Local sourcing Teams
PM PM PM
Quality Flow Control Flow Control Safety Products
PM
Thermal Control
supporting local manufacturing
EMEA & Asia NA & LA TEMP
Logistics
China
RCM Program Managers dedicated Shanghai, Pudong, Shenzhen
Commodity Teams
and accountable to business
India:
Chennai, Halol, Bangalore
units
Supplier Excellence Funded by BU/Programs Local Sourcing Teams
Quality Team Disbanded /Merged
Centralized Functions with specific
Logistics Team
expertise, Can be dedicated to BU based
• on volume
Bring Synergy across product line
• Consolidation of Volume across PM – Sourcing Transfer Program
product line & across plants. Managers
Reporting/Analysis
Services • Common Processes. RCM – Regional Commodity managers

32. IPO Services
 Transfer Project Management
– Supplier Selection RFP, RFQ, Pilot Run to Production
– Specification review and supplier technical communication
– Drawing review
 Commodity Management
– Supplier Rationalization
– New Supplier Development
 Supplier Performance
– Quality Systems Auditing (including financial background checks), part
inspection etc
– Supplier OTD, quality tracking – expediting etc
– Logistics & planning

33. IPO Supporting A Global Business Unit
Functional Leads In IPOs Global Global Programs / BU
Commodities Engineering Global Business Unit
Support Transfer Teams
Castings / Forgings USA
Metals / Fab. / Machining EMEA
Electronics – Asia
Components, PCBAs
Program Manager in BU Functional Leaders
Tooling
Finished Goods / IPO supporting a Engineering
Assemblies Manufacturing
Particular BU Sourcing
Quality
Global Suppliers
Order Management & Logistics US/EU/Asia
Global
Quality
Shared Commodity Expertise – Dedicated
Program Management

34. Logistics Team Helps Execution !
- Weekly order status - Order follow up
- OTD Improvement - Supplier coaching
- Weekly Con-call - Pre-production status review
- Physical on-site Check
- Manage Freight Forwarder
IPOs - Supplier capacity /Planning
- On time delivery
- Custom/Tariff issues - Payment Chasing
- Shipment Consolidation
Ordering & Payment
Tyco Suppliers
Plants Confirm, Shipment &
Invoice
Providing In Region Support to all Tyco entities
34

35. Established Technology Centers To Accelerate
Sourcing
Accelerating Growth With Centers
of Excellence (COE)
 Shanghai COE opened April „08
– 75 engineers with 100 planned
 Bangalore COE opened Nov. ‟08
– All Tyco entities co-located
– Team of 45 now in place
– ADT and TSP working together to
identify market opportunities
 NPI, Value Engineering, Supplier
changes, regulatory approvals and

36. Tyco Supplier Expectations
Capabilities Processes Social Responsibility
 Core competency in  eSourcing  Integrity
technology
 Six sigma  IP protection
 Global Logistics
 Lean 
Global safety &
- On time delivery regulatory compliance
 Superior Quality ( ISO, CE… )
- Warehousing
 Cost competitive  Trade compliance
 Capacity  Comply with Local
regulations
 Financial strength
World Class Supply Base
36

37. Overall Benefits
 Share & optimize resources – Leverage commodity expertise
and across divisions – Infrastructure COST
 Common supplier base - Volume leverage – Product COST
 Robust processes with global acceptance – Supplier selection,
audits, quality, transfer processes – Global Credibility
 One face to the supplier – Load distribution – Become a key
customer to a fewer suppliers
 Monitoring supplier performance – common score card
 Leverage regional / co-located technology centers
 NPI, Value Engineering, Supplier changes, regulatory
approvals and qualification
 Talent development, Training – Create a „best in class‟ team
 Global visibility – Career path – Retention
 One TYCO team identifying, communicating and addressing
RISKs in the region

38. Overcoming Challenges
 Demonstrate Value / ROI – Credit to business
units
 Initial resistance from business leaders  Dedicated program managers accountable &
– „Control‟ and „Credit‟ reporting to the business units
 Accountability - Focus / Priority  Engage business units in talent selection &
 Local vs. Global needs – quality / performance reviews
regulatory  Drive global standards & processes : Avoid
 Local supplier relationships – hard to A team/ B team
break  Global supplier base : Opportunity to
 Cost sharing existing suppliers to develop
 Hiring & developing talent - Cost  Fair cost allocations
 Language  Hire the best : multi-national /Multi lingual –
 Lack of support : Execution/ speed – Salary adjustments
Frustration / retention  Global ownership People/Projects – regular
program reviews with all key stakeholders

39. Global Sourcing Growth
EM Sourcing EM $ Spend $450M
Headcount 81 Growth
68 $390M
50 $280M
India
China
Czech Rep
Mexico
2007 2008 2009 2007 2008 2009
 Shared Service IPO – Most HC in Asia  Most spend to date is in Asia
 Adding HC in E. Eur. and Latin AM  Growing link with the market growth
 Commodity Center of Excellence  Looking beyond China and India in Asia
 Compliance Training  Exploring E. Europe & Latin AM – in 09
 Complimented by Technology Team  Internal Resistance remains in pockets
Shifting Role - From Global Sourcing / Cost Reductions
To Enabler of Regional Market Growth

40. Some of the projects………
40

41. …..Shipment of 20 Ton Casting
Pick-up
Logistics Support
Supplier
• Selection/Negotiation with
Freight Forwarder and obtained
Pick up from cost avoidance of nearly US$
Casting Supplier
Custom Clearance and 200K
Loading at Delhi
Airport
• Developed Packing
requirements
• Optimized the Routing
OFF loading from Aircraft • Flawless Execution of project.
at Destination Airport
and Custom Clearance
M/C
Supplier in
ITALY
Ground Transportation from
PARIS to ITALY

42. Key Takeaways
 Hire the best talent – Coach /mentor and link them to the global
team.
 Communication
 Leadership
 Content
 Do not compromise on suppliers - Need to pick technology &
growth partners
 Financial readiness
 Technology readiness
 Execution excellence
 Establish a disciplined internal operating mechanism
 Shared commodity management – BU dedicated program management
 Communication & share best practices
Demonstrate Value And Deliver Results

43. Thank You
Questions?