Significant Earnings Growth Opportunities. Christopher Coughlin Executive Vice President and CFO

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1 Significan Earnings Growh Opporuniies Chrisopher Coughlin Execuive Vice Presiden and CFO February 13, 2008

2 Tyco_Inernaional_SHOW_FILE_FINAL.pp ForwardLooking Saemen/ NonGAAP Measures This presenaion conains cerain forwardlooking saemens wihin he meaning of he Unied Saes Privae Securiies Liigaion Reform Ac of These saemens are based on managemen s curren expecaions and are subjec o risks, uncerainy and changes in circumsances, which may cause acual resuls, performance or achievemens o differ maerially from anicipaed resuls, performance or achievemens. All saemens conained herein ha are no clearly hisorical in naure are forwardlooking and he words opporuniies, anicipae, believe, expec, esimae, plan and similar expressions are generally inended o idenify forwardlooking saemens. The forwardlooking saemens in his presenaion may include saemens addressing he following subjecs: fuure financial condiion and operaing resuls, economic, business, compeiive and/or regulaory facors affecing Tyco s business. Any of he following facors may affec Tyco s fuure resuls: overall economic and business condiions; he demand for Tyco s goods and services; compeiive facors in he indusries in which Tyco compees; changes in ax requiremens (including ax rae changes, new ax laws and revised ax law inerpreaions); resuls and consequences of Tyco s inernal invesigaion and governmenal invesigaions concerning he Company s governance, managemen, inernal conrols and operaions including is business operaions ouside he Unied Saes; he oucome of liigaion and governmenal proceedings effec of income ax audi selemens; he raings on our deb and our abiliy o repay or refinance our ousanding indebedness as i maures; our abiliy o operae wihin he limiaions imposed by financing arrangemens and o mainain our credi raings ineres rae flucuaions and oher changes in borrowing coss; oher capial marke condiions, including currency exchange rae flucuaions; availabiliy of and flucuaions in he prices of key raw maerials, including seel and copper; economic and poliical condiions in inernaional markes, including governmenal changes and resricions on he abiliy o ransfer capial across borders; he abiliy o achieve cos savings in connecion wih he Company s sraegic resrucuring and Six Sigma iniiaives; poenial furher impairmen of our goodwill and/or our longlived asses; he impac of flucuaions in he price of Tyco common shares; changes in U.S. and nonu.s. governmenal laws and regulaions; he possible effecs on Tyco of fuure legislaion in he Unied Saes ha may limi or eliminae po9enial U.S. ax benefis resuling from Tyco s incorporaion in Bermuda or deny U.S. governmen conracs o Tyco based upon is incorporaion in Bermuda; and he poenial disracion coss associaed wih negaive publiciy relaion o acions of our former senior corporae managemen These are examples of facors, among ohers, ha could cause acual resuls o differ maerially from hose described in he forwardlooking saemens. In addiion, Tyco s preseparaion financial informaion is no necessarily represenaive of he resuls i would have achieved absen is healhcare and elecronics businesses and may no be a reliable indicaor of is fuure resuls. Tyco is under no obligaion o (and expressly disclaims any such obligaion o) updae or aler is forwardlooking saemens wheher as a resul of new informaion, fuure evens or oherwise. More deailed informaion abou hese and oher facors is se forh in Tyco s Annual Repor on Form 10K for he fiscal year ended Sepember and Quarerly Repor on Form 10Q for he fiscal quarer ended December 28, Organic revenue growh, operaing income before special iems, Adjused EBITDA, Free Cash Flow, Reurn On Invesed Capial, and Earnings per share from coninuing operaions before special iems are nongaap financial measures and are described in he Appendix. 1 Tyco Inernaional Highlighs A diverse porfolio of markeleading businesses in elecronic securiy, fire, safey services and producs, valves and conrols, and oher indusrial producs Srong global business in aracive, growing markes Large service revenue base Significan earnings growh opporuniies Operaional execuion Porfolio refinemen Appropriae use of capial Srong cash flow generaion and financial flexibiliy 2 1

3 Tyco_Inernaional_SHOW_FILE_FINAL.pp We Have A Diverse Porfolio of MarkeLeading Businesses Elecrical & Meal Producs $2.0B 2007 Revenue = $18.6B Oher* $0.1B Flow Conrol $3.8B ADT WW $7.6B Safey Producs $1.7B Fire Proecion Services $3.4B Solid Plaforms for Growh 3 * Revenue of cerain inernaional building producs businesses We Are WellPosiioned in Aracive Markes Tha Are Growing and Fragmened Global Elecronic Securiy Indusry Global Fire Indusry Global Indusrial Valves & Conrols Indusry $65+B Marke Expeced Marke Growh = 57% Thousands of Ohers ~75% Tyco 11% Secom Siemens UTC $30+B Marke Expeced Marke Growh = 34% Thousands of Ohers ~75% Tyco 12% UTC Honeywell GE Siemens $38+B Marke Expeced Marke Growh = 45% Tyco 5% 0 Emerson Cameron Flowserve Thousands of ohers ~85% Indusry Growh + Marke Share Growh Opporuniies 4 Source: Freedonia, McIlvaine, Indusry and Managemen Esimaes 2

4 Tyco_Inernaional_SHOW_FILE_FINAL.pp Our Businesses and Our Brands Are Known Around he World Global leader in securiy alarm monioring Global leader in anihef sysems Global leader in fire alarms and services Global leader in fire suppression sysems US leader in emergency breahing sysems Global leader in video and access conrol Global leader in indusrial valves and conrols US leader in elecrical condui A Global Marke Leader in ` Mos of Our Businesses 5 Approximaely 36% of Toal Revenue Is Comprised of Monioring and Service Revenue 2007 Revenue = $18.6B $6.7B 36% $11.9B 64% Produc & Insallaion Service ADT generaes $4.9B of revenue from monioring and service aciviies Fire generaes $1.6B of service and mainenance revenue A Large, Sable Base of Recurring Revenue 6 3

5 Tyco_Inernaional_SHOW_FILE_FINAL.pp We Have a Srong Presence in Developed Markes wih Upside in HighGrowh Economies 2007 Revenue = $18.6B Oher Americas 8% Asia Pacific 15% Europe 29% US 48% >50% of our revenue is generaed ouside of he Unied Saes Emerging markes represen a large growh opporuniy We operae in more han 60 counries 118,000 employees Emerging Markes Provide Revenue and Earnings Diversificaion 7 Significan Opporuniies o Improve Earnings Growh Operaional Execuion Organic Growh Focus Resrucuring Programs Operaional Excellence Corporae Expense Reducion Tax Rae Reducion Earnings Growh Porfolio Refinemen Divesiures Selecive Acquisiions Appropriae Use of Capial Disciplined Invesmen in our Businesses Reurn Capial o Shareholders 8 4

6 Tyco_Inernaional_SHOW_FILE_FINAL.pp Operaional Execuion Plans ADT Worldwide Fire Proecion Services Revenue Growh Disciplined growh in NA Faser growh in emerging markes Increasing service revenue Income Growh Resrucure / Improve margin in EMEA Operaional execuion Operaional execuion Safey Producs Flow Conrol Elecrical & Meal Producs Tyco Invesmen in echnology Gaining share in rapidly growing markes Mainain marke leading posiion in core produc lines Operaional Excellence Resrucuring Operaional Excellence Produciviy hrough reduced conversion coss Corporae cos reducion Tax Planning ADT and Flow Conrol are Focus Areas for Today 9 ADT Worldwide Global Leader in Elecronic Securiy Producs and Services Esimaed Elecronic Securiy Revenue ( Producs and Services ) Approx. $65B Thousands of Compeiors ADT WW Secom Siemens Sohgo (Japan) Honeywell F&S Unied Technologies Nex 10 Compeiors ADT Advanages Brand awareness Residenial/ Commercial capabiliy Service coverage Call Cener capabiliy Purchasing leverage Global accoun managemen Verical inegraion 10 Source: Freedonia and Indusry Esimaes 5

7 Tyco_Inernaional_SHOW_FILE_FINAL.pp ADT Worldwide Good Mix of Commercial and Residenial Business 2007 Recurring Revenue 2007 Revenue Composiion Accouns Residenial Residenial Revenue Accouns 33% 75% 7.1M $7.6B Commercial Accouns 25% Commercial Revenue 67% Two Differen Business Models Boh Provide Aracive Reurns 11 ADT Worldwide Approximaely 65% of Revenue is from Monioring and Mainenance 2007 ADT Worldwide Revenue $7.6B Insall & Produc Revenue 35% of Toal $2.7B Recurring Monhly Revenue 49% of Toal $3.7B Oher Service/Mainenance 16% of Toal $1.2B Large Base of Sable Recurring Revenue 12 6

8 Tyco_Inernaional_SHOW_FILE_FINAL.pp ADT Worldwide A Global And Local Business wih Differen Opporuniies by Region 25% 2007 Resuls Operaing Margin % before special iems* 20% 15% 10% 5% 0% NA Toal OI = 12.7% EMEA ROW 0% 5% 10% Organic Revenue Growh* NA larges and mos profiable marke wih growh and earnings upside EMEA improving wih margin upside Res of he World (ROW) good reurns and srong growh opporuniies 13 * Organic Revenue Growh and Operaing Margin before special iems are NonGAAP measures. For a reconciliaion o he mos comparable GAAP measure, please see Appendix. ADT Norh America Disciplined Growh and Improving Operaional Efficiency 2007 Revenue $7.6B 2007 ADT Norh America Commercial Residenial Toal NA EMEA 34% Revenue % Recurring $1.8B 86% $2.3B 41% $4.1B 61% ROW 13% Norh America 53% Op Inc* % Margin $433M 23.6% $267M 11.8% $700M 17.1% Adjused EBITDA* $919M $502M $1,421M EBITDA % 50.1% 22.5% 34.8% Our Larges, Mos Profiable Marke wih Growh + Earnings Upside 14 * Adjused EBITDA, Operaing Income before special iems and Operaing Margin before special iems are NonGAAP measures. For a reconciliaion, please see Appendix. 7

9 Tyco_Inernaional_SHOW_FILE_FINAL.pp ADT Norh America Drive Disciplined Growh in Residenial 850 NA Residenial Accouns (000s) $37.00 ADT US Monhly Revenue per New Residenial Cusomer # of Accouns (000s) Ariion Unis New Unis $35.00 $33.00 $31.00 $29.00 $ $ Base Burglar Alarm QSP Mainenance Smoke/Hea/CO Flood/Temp Securiy Link Cellguard Video View Touchpad Paging New Accoun + ARPU Growh => Recurring Revenue Growh 15 ADT Norh America Improve Operaing Efficiency We Are Sandardizing Operaions Across he Business Leveraging scale and improving service hrough a sandardized approach Fully deploying operaing playbooks and Performance Managemen Scorecards Improving sales force and insallaion efficiency hrough business simplificaion, raining and sysems Invesing in IT o simplify operaions, improve informaion flow and provide beer service levels Operaional Improvemen Is Fundamenal o Our Sraegy 16 8

10 Tyco_Inernaional_SHOW_FILE_FINAL.pp ADT Europe, Middle Eas & Africa Improve Operaing Margin 2007 EMEA Revenue $2.6B 34% of Toal ADT EMEA ADT NA Coninenal Europe $1.1B UK $1.0B Revenue Resi/Comm Spli % Recurring Op Inc* % Margin $2.6B 15%/85% 30% $152M 5.9% $4.1B 44%/56% 61% $700M 17.1% Middle Eas & Africa $0.5B Adjused EBITDA* EBITDA % Targe 10% Operaing Margin in 2010 $264M 10.3% $1,427M 34.8% 17 * Adjused EBITDA, Operaing Income before special iems and Operaing Margin before special iems are NonGAAP measures. For a reconciliaion, please see Appendix. ADT Europe, Middle Eas & Africa Coninenal Europe Unis (K) $M Accoun Growh Ariion New Accouns F Recurring Revenue F Challenges Srucural Issues High Coninenal Europe ariion raes; now improving Less favorable revenue mix (e.g., recurring and residenial revenue) Low sales produciviy Improving bu Coninues o Face Headwinds 18 9

11 Tyco_Inernaional_SHOW_FILE_FINAL.pp ADT Europe, Middle Eas & Africa Focused on Resrucuring, Improved Execuion & Mix 2008 A Year of Transiion and Rebuilding Reduce Headcoun by 2025% in Coninenal Europe Redefine erriories and operaions based on populaion densiy Consolidae number of duplicae locaions (many back office locaions) Business simplificaion Cenralize operaions and dispach Reduce he number of legal eniies Process reengineering less manual work; more echnology Sandardize pricing and execuion across projecs Rebuild our recurring revenue base implemen cusomer reenion ceners Making Good Progress on Our Iniiaives 19 ADT Res of World Grow Faser in Emerging Markes Asia 2007 Revenue = $533M; Organic revenue growh* of 12% Srong presence across he region Marke leadership in Korea, Hong Kong and Singapore China and India markes are sill small bu represen growing opporuniies for us Opened firs foreignowned licensed monioring cener in China in 2007 Reail cusomers represen a significan opporuniy boh in China and India Lain America 2007 Revenue = $264M; Organic revenue growh* of 12% Srong presence and marke leadership >25% marke share across he region Mexico, Brazil, Chile and Argenina represen our larges markes Building our base of accouns hroughou he region Focus on opporuniies for growh across all markes Securing Our Posiion in Faser Growh Markes 20 * Organic revenue growh is a NonGAAP measure. For a reconciliaion, please see Appendix. 10

12 Tyco_Inernaional_SHOW_FILE_FINAL.pp Flow Conrol is Tyco s Second Larges and Fases Growing Business Indusrial Valves & Conrols Marke Revenue ~ $38B Global Waer Marke Revenue ~ $18B Ohers Tyco Flow Conrol Nex 9 Ohers Top 3 Tyco Flow Conrol Nex 5 Large & Fragmened Markes Tyco Well Posiioned 21 Source: McIlvaine, Managemen Esimaes Flow Conrol A Srong Global Business Americas Revenue: $936M Lines of Business: Valves & Auomaion, Hea Tracing EMEA Revenue: $1,555M Lines of Business: Valves & Auomaion, Waer, Hea Tracing Asia Revenue: $432M Lines of Business: Valves & Auomaion, Hea Tracing Pacific Revenue: $844M Lines of Business: Waer, Valves & Auomaion Approximaely 75% of Revenue Is From Inernaional Markes 22 11

13 Tyco_Inernaional_SHOW_FILE_FINAL.pp Flow Conrol Balanced Across End Markes Flow Conrol End Markes Sorage Transmission Disribuion Trends Aging infrasrucure hroughou Europe driving need for upgrades Increasing poable waer demand for developing counries Waer Process Energy Chemical & Pharma Marine Food & Beverage Mining & Minerals Oil and Gas Refining Power Generaion Trends Need for new capaciy has been driving srong demand for valves and conrols Thermal Conrols expeced o benefi from large refinery expansion projecs Srong Growh Driven by MacroEconomic Trends 23 Flow Conrol Good Growh Opporuniies Ahead Thermal Conrols Business $650+M Global leader in Indusrial Heaing Soluions Growh Prospecs Winning mega oil projecs in NA; fuure mega projecs in emerging markes Suppor alernaive fuel exploraion echniques Growing conversion from seam o more economical elecrical hea Sophisicaed modeling ools opimize design and reduce clien s projec cos Inegraed Flow Conrol/Tyco offering Key Managemen Acions Developing/execuing Norh American mega projecs Growing services capabiliies in emerging markes and Europe R+D invesmen o furher differeniae elecronics capabiliies Growing engineering design ceners in emerging markes Capializing on Srong Energy Trends 24 12

14 Tyco_Inernaional_SHOW_FILE_FINAL.pp Flow Conrol Srong Revenue and Operaing Income Growh Oulook Revenue and Income Poenial Srong end marke demand paricularly energy and waer Operaing income improvemen produciviy improvemens higher volume pricing $ in 000s Q1 08 Revenue Organic Revenue* Growh Operaing Income* Operaing Income Growh Operaing Margin* $3, % $356 6% 11.4% $3, % $486 36% 12.9% $1, % $173 53% 16.1% 25 * Organic revenue growh, Operaing Income before special iems and Operaing Margin before special iems are NonGAAP measures. For a reconciliaion, please see Appendix. Significan Opporuniies o Improve Earnings Growh Operaional Execuion Organic Growh Focus Resrucuring Programs Operaional Excellence Corporae Expense Reducion Tax Rae Reducion Earnings Growh Porfolio Refinemen Divesiures Selecive Acquisiions Appropriae Use of Capial Disciplined Invesmen in our Businesses Reurn Capial o Shareholders 26 13

15 Tyco_Inernaional_SHOW_FILE_FINAL.pp Porfolio Refinemen Divesiures: Significan progress in divesing businesses ha do no fi wihin our porfolio Reached agreemen o sell Brazilian subsidiary of Infrasrucure Services business for approximaely $300 million; Expeced o close Q Remainder of Infrasrucure Services is in sale process Dives or exi oher small businesses ha are noncore or lower margin Acquisiions: We will coninue o make selecive acquisiions in areas ha srenghen our exising businesses, primarily echnologically and geographically Acquired TridenTek (a leading developer of video surveillance soluions) in Q1 08 ha will srenghen he video and access produc group Driving Cash and Margin Improvemen 27 Significan Opporuniies o Improve Earnings Growh Operaional Execuion Organic Growh Focus Resrucuring Programs Operaional Excellence Corporae Expense Reducion Tax Rae Reducion Earnings Growh Porfolio Refinemen Divesiures Selecive Acquisiions Appropriae Use of Capial Disciplined Invesmen in our Businesses Reurn Capial o Shareholders 28 14

16 Tyco_Inernaional_SHOW_FILE_FINAL.pp We Generae A Subsanial Amoun of Free Cash Flow Inves in profiable organic revenue growh iniiaives Fund cos reducion and operaional improvemen opporuniies wihin our businesses Make selecive acquisiions o enhance our marke leadership posiions Reurn capial o our shareholders Which Provides Significan Financial Flexibiliy 29 Free Cash Flow is a nongaap measure. For a reconciliaion o he mos comparable GAAP measure, please see Appendix. We Generae Srong Incremenal Reurns on Invesed Capial ADT Worldwide 2007 Reurn on Invesed Capial* Fire Proecion Services Safey Producs Flow Conrol Elecrical & Meal Producs Toal Tyco 0% 20% 40% 60% 80% 100% 120% ROIC ROIC (Excluding Goodwill) 30 *ROIC is a nongaap financial measure. Please see Appendix for a reconciliaion. 15

17 Tyco_Inernaional_SHOW_FILE_FINAL.pp Appropriaely Reurn Capial o Shareholders Dividend Curren quarerly dividend of $0.15 per share Increase of 36% over he quarerly dividend of approximaely $0.11 ha he company expeced o pay following he separaion Share Repurchase Announced $1 Billion share repurchase program in Sepember 2007 To dae, Tyco has repurchased more han 13 million shares or approximaely 2.7% of shares ousanding ($531 million) Expec o complee program wihin he year which would resul in a 45% reducion of oal shares ousanding 31 Q Resuls Delivering Earnings Growh ($ in millions, excep EPS) Q Q % Change Revenue $4,870 $4,365 12% Organic Revenue Growh* 6.0% 5.4% Operaing Income* % Operaing Margin* 10.7% 7.7% EPS from Con. Ops.* $0.73 $ % Organic revenue growh of 6.0% led by Flow Conrol (+17.7%) Doubledigi earnings growh in all business segmens led by Flow conrol a 53% Significan reducion in corporae expense EPS from Coninuing Ops before Special Iems increased 49% year over year Srong Sar o 2008; FY 2008 Guidance Increased o $2.60 $ * Organic revenue growh is a nongaap measure. Operaing income, operaing margin and EPS from coninuing operaions are before special iems, which are nongaap measures. Please refer o Appendix for a reconciliaion. 16

18 Tyco_Inernaional_SHOW_FILE_FINAL.pp Summary A diverse porfolio of markeleading businesses in elecronic securiy, fire, safey services and producs, valves and conrols, and oher indusrial producs Srong global business in aracive, growing markes Large service revenue base Significan earnings growh opporuniies Operaional execuion Porfolio refinemen Appropriae use of capial Srong cash flow generaion and financial flexibiliy Posiioned for a Sronger Fuure 33 Appendix 17

19 Tyco_Inernaional_SHOW_FILE_FINAL.pp ADT Worldwide A A Glance 2007 Financial Summary Revenue of $7.6B Operaing Income before Special Iems of $971M and Adjused EBITDA of $1.9B* Global provider of residenial and commercial securiy sysems Marke leadership posiion 7.1 million cusomers globally Large sable recurring revenue base (~$4 billion) Opporuniies Disciplined growh and operaional execuion focus in NA Improving operaing margin in EMEA Faser growh in emerging markes 35 * Adjused EBITDA and Operaing Income before special iems are NonGAAP measures. For a reconciliaion, please see Appendix. Fire Proecion Services A A Glance 2007 Financial Summary Revenue of $3.4B Operaing Income before Special Iems of $280M* Global provider of elecronic and mechanical fire sysems Service represens almos half of he oal revenue Srong global presence NA is he larges marke and has been seadily improving profiabiliy Opporuniies Increase service revenue Operaional execuion sandardizing operaions across he business 36 * Operaing Income before special iems is a NonGAAP measure. For a reconciliaion, please see Appendix. 18

20 Tyco_Inernaional_SHOW_FILE_FINAL.pp Safey Producs A A Glance 2007 Financial Summary Revenue of $1.7B Operaing Income before Special Iems of $313M* Marke leading provider of: Fire Suppression Elecronic Securiy Life Safey producs Srong marke posiion wih leading echnologies Aracive markes wih good growh and profi opporuniies Opporuniies Inves in Technology Operaional Excellence/ Resrucuring o improve produciviy Global expansion 37 * Operaing Income before special iems is a NonGAAP measure. For a reconciliaion, please see Appendix. Flow Conrol A A Glance 2007 Financial Summary Revenue of $3.8B Operaing Income before Special Iems of $486M* Global leader in valves, conrols and relaed producs Wellknown brands wih srong posiions Geographic and end marke diversiy Srong macroeconomic rends driving srong growh Opporuniies Gain marke share in srong growh markes Grow hermal conrols business Operaing leverage and Operaional Excellence 38 * Operaing Income before special iems is a NonGAAP measure. For a reconciliaion, please see Appendix. 19

21 Tyco_Inernaional_SHOW_FILE_FINAL.pp Elecrical & Meal Producs A A Glance 2007 Financial Summary Revenue of $2.0B Operaing Income before Special Iems of $166M* Marke leader in seel ubes and pipes, armored cable and elecrical condui producs Srong, well known brands Purchases and processes over one million ons of seel per year Profi is dependen on meal spreads primarily seel and copper Opporuniies Operaional Excellence improve produciviy and reduce conversion coss Consolidae faciliies 39 * Operaing Income before special iems is a NonGAAP measure. For a reconciliaion, please see Appendix Organic Growh $M 2005 Rev Acq/Disp FX Organic Growh 2006 Rev Organic % ADT Worldwide 7,104 (19) (35) 155 7, % Flow Conrol 2,806 (43) 372 3, % Fire Proecion 3,064 (39) (12) 149 3, % Safey Producs 1,621 (56) (2) 61 1, % Elecrical & Meal 1, , % Corporae & Oher 93 (3) % Toal 16,486 (114) (80) , % 40 20

22 Tyco_Inernaional_SHOW_FILE_FINAL.pp 2007 Organic Growh $M 2006 Rev Acq/Disp & Oher FX Organic Growh 2007 Rev Organic % ADT Worldwide 7,205 (24) , % Flow Conrol 3,135 (16) , % Fire Proecion 3,162 (30) , % Safey Producs 1, , % Elecrical & Meal 1, , % Corporae & Oher % Toal 17,166 (69) , % 41 Q1 07 Organic Growh $M Q1FY06 Revenues Acq/Disp & Oher FX Organic Growh Q1FY07 Revenues Organic % ADT Worldwide 766 (1) % Flow Conrol % Fire Proecion 733 (14) % Safey Producs % Elecrical & Meal % Corporae & Oher % Toal 4,042 (14) , % 42 21

23 Tyco_Inernaional_SHOW_FILE_FINAL.pp Q1 08 Organic Growh $M Q1FY07 Revenues Acq/Disp & Oher FX Organic Growh Q1FY08 Revenues Organic % ADT Worldwide 1,863 (11) , % Flow Conrol 835 (1) , % Fire Proecion % Safey Producs % Elecrical & Meal % Corporae & Oher % Toal 4,365 (12) , % Operaing Income Before Special Iems Fire Elecrical ADT Flow Proecion Safey & Meal Corporae Operaing Worldwide Conrol Services Producs Producs and Oher Income Operaing Income $907 $356 $237 $196 $319 ($645) $1,370 Separaion coss (1) Losses on divesiures 2 2 Reducion in esimaed workers' compensaion liabiliies (48) (48) Volunary Replacemen Program Former Managemen Selemen (72) (72) Operaing Income Before Special Iems $909 $356 $236 $296 $319 ($715) $1,

24 Tyco_Inernaional_SHOW_FILE_FINAL.pp 2007 Operaing Income Before Special Iems Fire Elecrical ADT Flow Proecion Safey & Meal Corporae Operaing Worldwide Conrol Services Producs Producs and Oher Income Operaing Income $842 $457 $246 $274 $159 ($3,698) ($1,720) Resrucuring charges in cos of sales Class acion selemen, ne 2,871 2,871 Separaion coss Losses on divesiures Resrucuring and asse impairmen charges, ne Goodwill impairmen Volunary Replacemen Program Operaing Income Before Special Iems $971 $486 $280 $313 $166 ($670) $1, Q1 07 Operaing Income Before Special Iems Fire Elecrical ADT Flow Proecion Safey & Meal Corporae Operaing Worldwide Conrol Services Producs Producs and Oher Income Operaing Income $201 $108 $59 $71 $41 ($224) $256 Separaion coss Resrucuring and asse impairmen charges, ne Operaing Income Before Special Iems $232 $113 $59 $78 $41 ($186) $

25 Tyco_Inernaional_SHOW_FILE_FINAL.pp Q1 08 Operaing Income Before Special Iems Fire Elecrical ADT Flow Proecion Safey & Meal Corporae Operaing Worldwide Conrol Services Producs Producs and Oher Income Operaing Income $249 $171 $72 $86 $41 ($120) $499 Resrucuring charges in cos of sales Separaion coss Resrucuring and asse impairmen charges, ne Operaing Income Before Special Iems $256 $173 $72 $87 $45 ($110) $ EBITDA Reconciliaion $M ADT Worldwide 2007 Revenue $7, Op Inc* $ D&A $ EBITDA $1, EBITDA Margin 24.8% Fire Proecion $3,377 $280 $30 $ % Flow Conrol $3,766 $486 $62 $ % Safey Producs $1,719 $313 $94 $ % Elec. & Meal $1,974 $166 $27 $ % Oher $120 $24 $1 $ % Corporae ($694) $11 ($683) NM Toal $18,604 $1,546 $1,150 $2, % 48 * Operaing Income is before special iems which is a NonGAAP measure. 24

26 Tyco_Inernaional_SHOW_FILE_FINAL.pp Free Cash Flow Year Ended Sep 28, 2007 Sep 29, 2006 Reconciliaion o "Free Cash Flow": Ne cash provided by operaing aciviies $ 1,836 $ 1,993 Decrease in sale of accouns receivable 7 8 Capial expendiures, ne (646) (519) Acquisiion of cusomer accouns (ADT dealer program) (409) (373) Purchase accouning and holdback liabiliies (10) (7) Volunary pension conribuions 23 Free Cash Flow $ 801 $ 1,102 Cash separaion coss $ 93 $ Cash resrucuring coss 70 IRS advance funding 295 Former Exec Resiuion (136) SEC Selemen 50 One ime iems $ 322 $ 50 NOTE: Includes NDC. 49 Reurn on Invesed Capial (Including Goodwill) $M ADT Worldwide 2007 Op Inc* Afer Tax $ Avg Invesed Capial $8, ROIC 8% Fire Proecion $202 $1,978 10% Flow Conrol $349 $3,087 11% Safey Producs $225 $3,086 7% Elec. & Meal $119 $1,829 7% Oher $17 $69 25% Corporae ($2,406) NM Toal $1,103 $16,345 7% 50 * Operaing Income is before special iems which is a NonGAAP measure. For a reconciliaion, please see preceding ables. 25

27 Tyco_Inernaional_SHOW_FILE_FINAL.pp Reurn on Invesed Capial (Excluding Goodwill) $M 2007 Op Inc* Afer Tax 2007 Avg Invesed Capial 2007 ROIC ADT Worldwide $699 $4,061 17% Fire Proecion $202 $245 82% Flow Conrol $349 $1,239 28% Safey Producs $225 $913 25% Elec. & Meal $119 $759 16% Oher $17 $17 102% Corporae ($2,406) NM Toal $1,103 $5,013 22% 51 * Operaing Income is before special iems which is a NonGAAP measure. For a reconciliaion, please see preceding ables. NonGAAP Measures Organic revenue growh, free cash flow, operaing income before special iems, operaing margin before special iems, earnings per share (EPS) from coninuing operaions before special iems, adjused earnings before ineres, axes, depreciaion and amorizaion (Adjused EBITDA), and reurn on invesed capial (ROIC) are nongaap measures and should no be considered replacemens for GAAP resuls. Organic revenue growh is a useful measure used by he company o measure he underlying resuls and rends in he business. The difference beween repored ne revenue growh (he mos comparable GAAP measure) and organic revenue growh (he nongaap measure) consiss of he impac from foreign currency, acquisiions and divesiures, and oher changes ha do no reflec he underlying resuls and rends (for example, revenue reclassificaions and changes o he fiscal year). Organic revenue growh is a useful measure of he company s performance because i excludes iems ha: i) are no compleely under managemen s conrol, such as he impac of foreign currency exchange; or ii) do no reflec he underlying growh of he company, such as acquisiion and divesiure aciviy. I may be used as a componen of he company s compensaion programs. The limiaion of his measure is ha i excludes iems ha have an impac on he company s revenue. This limiaion is bes addressed by using organic revenue growh in combinaion wih he GAAP numbers. See he accompanying ables o his press release for he reconciliaion presening he componens of organic revenue growh. FCF is a useful measure of he company s cash which is free from any significan exising obligaion. The difference beween cash flows from operaing aciviies (he mos comparable GAAP measure) and FCF (he nongaap measure) consiss mainly of significan cash ouflows ha he company believes are useful o idenify. FCF permis managemen and invesors o gain insigh ino he number ha managemen employs o measure cash ha is free from any significan exising obligaion. I may also be a significan componen in he company s incenive compensaion plans. The difference reflecs he impac from: he sale of accouns receivable programs, ne capial expendiures, acquisiion of cusomer accouns (ADT dealer program), cash paid for purchase accouning and holdback liabiliies, and volunary pension conribuions. The impac from he sale of accouns receivable programs and volunary pension conribuions is added or subraced from he GAAP measure because his aciviy is driven by economic financing decisions raher han operaing aciviy. Capial expendiures and he ADT dealer program are subraced because hey represen longerm commimens. Cash paid for purchase accouning and holdback liabiliies is subraced from Cash Flow from Operaing Aciviies because hese cash ouflows are no available for general corporae uses. The limiaion associaed wih using FCF is ha i subracs cash iems ha are ulimaely wihin managemen s and he Board of Direcors discreion o direc and ha herefore may imply ha here is less or more cash ha is available for he company's programs han he mos comparable GAAP measure. This limiaion is bes addressed by using FCF in combinaion wih he GAAP cash flow numbers

28 Tyco_Inernaional_SHOW_FILE_FINAL.pp NonGAAP Measures FCF as presened herein may no be comparable o similarly iled measures repored by oher companies. The measure should be used in conjuncion wih oher GAAP financial measures. Invesors are urged o read he company s financial saemens as filed wih he Securiies and Exchange Commission, as well as he accompanying ables o his press release ha show all he elemens of he GAAP measures of Cash Flows from Operaing Aciviies, Cash Flows from Invesing Aciviies, Cash Flows from Financing Aciviies and a reconciliaion of he company's oal cash and cash equivalens for he period. See he accompanying ables o his press release for a cash flow saemen presened in accordance wih GAAP and a reconciliaion presening he componens of FCF. The company has presened operaing income and margin before special iems and EPS from coninuing operaions before special iems. Special Iems include charges and gains relaed o divesiures, acquisiions, resrucurings (including ransacion coss relaed o he separaions of Tyco Elecronics and Covidien ino separae public companies), and oher income or charges ha may mask he underlying operaing resuls and/or business rends of he company or business segmen, as applicable. The company uilizes EPS and operaing income and margin before special iems o assess overall operaing performance, segmen level core operaing performance and o provide insigh o managemen in evaluaing overall and segmen operaing plan execuion and underlying marke condiions. There may also be significan componens in he company s incenive compensaion plans. Operaing income, operaing margin, and EPS before special iems are useful measures for invesors because hey permi more meaningful comparisons of he company s underlying operaing resuls and business rends beween periods. The difference beween operaing income and margin before special iems versus operaing income and operaing margin (he mos comparable GAAP measures) consiss of he impac of charges and gains relaed o divesiures, acquisiions, resrucurings (including ransacion coss relaed o he separaions of Tyco Elecronics and Covidien ino separae public companies), and oher income or charges ha may mask he underlying operaing resuls and/or business rends. The limiaion of hese measures is ha hey exclude he impac (which may be maerial) of iems ha increase or decrease he company s repored EPS and operaing income and margin. This limiaion is bes addressed by using operaing income and margin before special iems in combinaion wih he mos comparable GAAP measures in order o beer undersand he amouns, characer and impac of any increase or decrease on repored resuls. Adjused Earnings before ineres, axes, depreciaion and amorizaion (Adjused EBITDA) is a nongaap financial measure which represens earnings, excluding cerain iems such as depreciaion and amorizaion, ineres and financing expenses ne of any ineres income and income axes and special iems excluded from operaing income. The difference beween repored ne income (he mos comparable GAAP measure) and Adjused EBITDA he nongaap measure) consiss of he impac of depreciaion and amorizaion, ineres and financing expenses ne of any ineres income and income axes. Managemen considers Adjused EBITDA as an imporan measure of our operaions and financial performance as Adjused EBITDA is reflecive of our operaing effeciveness and financial performance. Use of Adjused EBITDA, in conjuncion wih our GAAP resuls, provides ransparency o invesors and enhances periodoperiod comparabiliy of our operaions and financial performance. The limiaion of his measure is ha i excludes iems ha have an impac on he GAAP earnings and ne income resuls. This limiaion is bes addressed by using Adjused EBITDA in combinaion wih ne income. 53 NonGAAP Measures Reurn on invesed capial (ROIC) is a nongaap measure ha managemen believes provides useful supplemenal informaion for managemen and he invesor. ROIC is a ool by which we rack how much value we are creaing for our shareholders. ROIC is a useful measure of he company s performance because i quanifies he effeciveness of managemen s capial invesmen aciviies. Managemen calculaes annual ROIC, boh wih and wihou he impac of goodwill, as a percenage, by dividing aferax operaing income by he amoun of capial invesed across he business segmen. We believe ha ROIC provides our managemen wih a means o analyze and improve heir business, measuring segmen profiabiliy in relaion o ne asse invesmens. The limiaion associaed wih using ROIC is ha is i is dependen on iems ha are ulimaely wihin managemen s and he Board of Direcors discreion and herefore may imply ha here is beer or worse invesmen reurn over a given ime period. In addiion, ROIC may no be calculaed he same way by every company. We compensae for his limiaion by monioring and providing o he reader a full GAAP income saemen and balance shee