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

Consolidated Review

Revenues in 2003 were 7% higher than 2002 because of growth in all segments and changes in currency exchange rates. Operating profit in 2003 was 25% lower primarily because the cost of retiree and other benefits and other costs related to the former coal business were classified within former coal operations in continuing operations. Prior to 2003, these expenses were recorded within discontinued operations. Operating profit was stronger at Brink’s and BHS on growth in these businesses, offset by lower profits at BAX Global primarily due to the effects of the recession and a shift in volumes from expedited to deferred products in the Americas region.

Revenues in 2002 were 4% higher than 2001 because of growth in all segments, partially offset by changes in currency exchange rates. Operating profit increased 35% in 2002 due to improved operating performance in the Company’s Business and Security Services segments, particularly at BAX Global, partially offset by $19.2 million of impairment and other charges related to the Company’s former coal operations.

Throughout this report, the reference to constant currency is made so that a segment’s revenues can be viewed without the impacts of changing foreign currency exchange rates, facilitating a comparative view of business growth. Relative to other currencies (except those in South America), the U.S. dollar generally weakened in 2003 and 2002 compared to the respective prior year periods, so growth at constant currency exchange rates was lower than growth at actual currency exchange rates. Changes in foreign currency exchange rates have not materially affected period-to-period comparisons of segment operating profit.

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