Management’s Discussion and Analysis

Operations Results of Operations Liquidity and Capital Resources Market Risk Exposures Application of Critical Accounting Pronouncements Recent Accounting Pronouncements Forward-Looking Information

Overview Consolidated Review Brink’s, Incorporated Brink’s Home Security BAX Global Corporate Expense - The Brink’s Company Retained Liabilities and Assets of Former Natural Resource Operations Other Operating Income, Net Nonoperating Income and Expense Income Taxes Foreign Operations

Brink’s, Incorporated

(a) U.S. and Canada

2003

Overview

Improved revenues and operating profit in 2003 at Brink’s reflected much better results in the International region. International operating profit increased over the prior year, despite the higher profit levels achieved in the first quarter of 2002 associated with special euro currency processing and transportation work. Most of the improvement in the International region occurred in South America where performance was weak in 2002.

North America

North American operating profit was 2% higher in 2003 over the prior year on a 3% increase in revenues (2% increase in revenues on a constant currency basis). The slightly higher operating profit in North America was primarily due to improved performance in the Cash Logistics operations and Global Services, mostly offset by higher employee benefit expenses. A $5.5 million gain on the sale of operating assets was largely offset by severance and other costs discussed below.

In 2003, management closed its Brink’s corporate headquarters in Darien, Connecticut and relocated employees to either Brink’s U.S. headquarters in Coppell, Texas, or to The Brink’s Company headquarters in Richmond, Virginia. As a result, approximately $5.4 million of severance and other costs were incurred in the U.S. during 2003.

An increase in employee benefit costs in 2003 included $4.8 million higher expense from the Company’s primary U.S. pension plan and higher health care costs for active employees. These costs are expected to increase again in 2004.

International

International operating profit for 2003 was 35% higher than 2002 on a 10% increase in revenues (3% increase in revenues on a constant currency basis). Improvements in revenues and operating profit on a constant currency basis in South America and Asia-Pacific were offset by lower European revenues and operating profit, as discussed below.

Europe. European revenues and operating profit in the first quarter of 2002 benefited from the currency processing and transportation work associated with the introduction of the euro on January 1, 2002. However, the cost of staffing levels, which remained high after the euro work was completed, negatively affected the last nine months of 2002 and, to a lesser degree, the first half of 2003.

Europe’s revenues and operating profit in 2003 were below the prior year on a constant currency basis primarily because of the absence of the euro work performed in the first quarter of 2002. There was also approximately $4.7 million of higher severance expense associated with workforce reductions. Revenues on a constant currency basis were higher in the second half of 2003 compared to the same 2002 period generally due to better performance and, to a lesser extent, due to additional revenues associated with a first-quarter 2003 acquisition in Belgium. Operating profit in the second half of 2003 also improved compared to the same period in 2002 reflecting improvements in a number of countries, and the benefits of management and operational changes, particularly in France.

Although the economies in Europe continue to be sluggish, year-over-year comparisons of European operating results in the first half of 2004 are expected to continue to benefit from management changes and workforce reductions made to better align resources with business needs.

South America. In South America, operating profit in 2003 was higher than the prior year reflecting better performance in Venezuela, partially offset by lower operating performance in Brazil. Favorable market conditions and lower labor costs as a percentage of revenue benefited Venezuela’s performance in 2003. Venezuela is Brink’s largest operation in South America. Brazil, Brink’s second largest operation in South America, did not perform as well in 2003 compared to 2002 as a result of the continuing difficult economic and operating conditions there. Brazil’s operating results improved in the fourth quarter of 2003 over the same period a year earlier primarily due to improved profitability of ATM and Cash Logistics services, partially offset by lower armored transportation profitability. Overall, economic conditions in South America seem to be improving, although operating conditions remain volatile, particularly in Venezuela.

Asia-Pacific. Asia-Pacific operating profit in 2003 was higher than last year primarily due to improved results in Australia. In addition, Global Services business improved in Hong Kong and Korea.

2002

Overview

Brink’s revenues increased in both North America and International operations in 2002 compared to 2001, and although operating profit increased 23% in North America, operating profit was lower in the International operations, primarily due to the effects of difficult economic and operating conditions in South America.

North America

Revenue increases in North American operations in 2002 were primarily related to increased currency processing and armored transportation activities (which includes ATM services). Operating profit increased in 2002 primarily due to improved performance in U.S. Global Services and, to a lesser extent, armored transportation operations and currency processing.

International

Revenues from International operations in 2002 increased 3% over 2001 (5% on a constant currency basis). International revenues in 2002 as compared to 2001 would have been $14 million higher on a constant currency basis; however, weaker South American currencies more than offset strengthening European currencies. The decrease in International operating profit was primarily due to lower results in South America, which more than offset improved results in Asia-Pacific and Europe.

Europe. Revenues in Europe reflected increased volumes in armored transportation, ATM servicing, currency processing and Global Services operations. Europe’s operating profits in the fourth quarter of 2001 and the first quarter of 2002 were higher as a result of nonrecurring euro-related processing and transportation work.

The first nine months of 2001 reflected upfront costs associated with preparations for the euro work. Results throughout 2002 reflected higher than normal labor expenses as staffing levels remained high following the euro work performed in the first half of the year. Brink’s incurred severance expense associated with a reduction in staffing levels in Germany in the second half of 2002. European operating performance in 2002 reflected higher volume and operational improvements in certain countries despite the general softness in European economies.

South America. South American revenues and operating profits in 2002 were negatively impacted by the continuing effects of difficult economic and operating conditions.

Asia-Pacific. Asia-Pacific operating profits in 2002 were well above the prior year, reflecting higher pricing in Australia. International operating profits for 2001 included approximately $2 million of pretax gains on the sale of two non-strategic international affiliates.

MD&A Quicklinks