The Brink's Company Annual Report 2003

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FY2003 Annual Report · The Brink's Company

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A C o m p a n y i n M o t i o n

The Brink’s Company

2003 Annual Report

A COMPANY IN MOTION

Table of Contents

Financial Highlights

To Our Shareholders

Brink’s, Incorporated

Brink’s Home Security

BAX Global

2003 Financial Review:

Management’s Discussion and Analysis

Statement of Management Responsibility

Independent Auditors’ Report

Consolidated Financial Statements

Notes to Consolidated Financial Statements

Selected Financial Data

Board of Directors and Senior Management

114

116

“A Company in Motion” describes both the
transition of The Brink’s Company into a firm
focused solely on business and security services,
as well as its commitment to meeting customers’
needs across the globe. Whether responding to
a residential alarm in the U.S., meeting a retailer’s
supply chain management requirements in Asia,
or handling cash processing for a bank in Europe,
The Brink’s Company is truly in motion, around
the clock and around the world.

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The Brink’s Company is a global leader in
business and security services, with three
operating units: Brink’s, Incorporated, the
world’s premier provider of secure trans-
portation and cash management services;
Brink’s Home Security, one of the largest
and most successful residential alarm com-
panies in North America; and BAX Global,
an industry leader in global supply chain
management and transportation solutions.

The Brink’s Company common stock trades
on the New York Stock Exchange under the
ticker symbol BCO.

The Brink’s Company Financial Highlights

(Operating results for continuing operations, except where noted)

(In millions except per share data)

Operating Results

2003

2002

2001

2000

1999

Revenues

Brink’s, Incorporated

Brink’s Home Security

BAX Global

Total Revenues

Operating Profit (Loss)

Brink’s, Incorporated

Brink’s Home Security
BAX Global(a)

Total Business and Security Services(a)

Former Coal Operations

Gain on Sale of Equity Interest

Corporate Expense
Total Operating Profit(a)

Earnings per Share:

Continuing Operations(b)
Net Income (loss)(b)(c)

Weighted Average

Common Shares Outstanding(b)

1,689

$ 1,580

$ 1,536

$ 1,463

1,373

311

1,999

282

1,872

258

1,790

238

2,098

229

2,083

3,999

3,734

$ 3,584

3,799

3,685

112.5

71.2

3.0

186.7

(69.5)

10.4

(27.8)

96.1

60.9

17.6

174.6

(19.2)

–

(23.1)

92.0

54.9

(27.6)

119.3

–

$ 108.5

$ 103.5

54.3

(99.6)

63.2

–

54.2

61.5

219.2

–

(21.5)

(20.2)

(22.6)

99.8

$ 132.3

97.8

43.0

$ 196.6

0.34

0.55

53.2

1.30

0.48

0.73

0.31

(0.01)

(5.12)

52.4

51.4

50.1

2.18

0.70

49.3

Cash Flow from Operating Activities(c)
Total Assets(c)
Long Term Debt, Less Current Maturities(c)
Shareholders’ Equity(c)

300.8

2,548.6

221.5

495.6

$ 241.3

$ 320.1

$ 369.8

329.3

2,459.9

2,423.2

304.2

381.2

257.4

476.1

2,478.7

313.6

475.8

2,459.7

395.1

749.6

(a) Includes BAX Global-related restructuring charges of $57.5 million in 2000.
(b) Diluted basis. Shares are pro forma for 1999.
(c) Includes Discontinued Operations. 2000 includes $1.04 per share charge for the implementation of Staff Accounting Bulletin No. 101.

The financial highlights set forth above should be read only in conjunction with the 2003 Annual Report,
including Management’s Discussion and Analysis and the consolidated financial statements.

A COMPANY IN MOTION

To Our Shareholders

Michael T. Dan
Chairman, President and
Chief Executive Officer

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In many respects, 2003 was a pivotal year for our
company. For the last few years, we have been executing
a three-part strategy designed to enhance the growth
prospects and value of our company through:

• Exiting the coal and other natural resources

businesses and managing the remaining liabilities;

• Improving the performance capabilities of BAX Global; and
• Growing the Brink’s security businesses.

After exiting the coal business at the end of 2002, the
company continued to divest its noncore businesses through-
out 2003 and early 2004, completing the sale of its other
natural resources operations – natural gas, timber, gold – and
the last significant remaining group of coal properties. With
the disposition of substantially all of our natural resources
assets, we are now squarely focused on building upon our
strong foundation in business and security services.

The transformation of our company was marked by an
important event in early 2003, when shareholders approved
the renaming of our company to The Brink’s Company. On
May 5, 2003, exactly 144 years from the day that Perry Brink
started his cartage business in Chicago, our common stock
began trading on the New York Stock Exchange under
its new name with a new ticker symbol – BCO. The new
corporate name reflects the company’s position as a global
leader in business and security services and draws upon
the strength of the Brink’s brand. Brink’s is synonymous
with trust, integrity, security, efficiency, and world-class
service – hallmarks of the way we do business.

In 2003, we also took substantial steps to address

the legacy costs of our former coal operations, while
improving our overall financial strength and flexibility.
The sale of the natural resources assets produced cash
of more than $145 million.

These proceeds, in combination with strong cash flow

from our core businesses, were used to:

• Add $82 million to our Voluntary Employees’

Beneficiary Association trust (VEBA), the funding
vehicle for retiree medical legacy costs of the former
coal operations, bringing the value to approximately
$105 million by year end;

• Contribute $20 million to the company’s U.S.

pension plan; and

• Reduce net financings by more than $100 million.

The Brink’s Company today is a more focused organi-
zation that is poised for greater growth and profitability
and that stands to benefit from improvements in the U.S.
and global economies. We have a solid position in each
of our three business segments, thanks to the strength
of our brands, our unwavering commitment to service
excellence, and a disciplined financial and operating
approach to running our businesses.

Our company’s revenues are now almost evenly split
between business and security services. Security operations
are represented by Brink’s, Incorporated, a global leader
in the secure transportation and processing of cash and
other valuables, and Brink’s Home Security, which with
its disciplined approach to growing earnings and cash
flow, became the second largest and fastest growing
major residential alarm company in North America during
2003. BAX Global, our global freight transportation and
supply chain management solutions company, had nearly
$2 billion in revenues and benefited from the global
economic recovery.

For each of our businesses, the number one priority

is providing unsurpassed, premier service while safe-
guarding people and property – at home, at work, or
en route – virtually anywhere in the world. Despite
sluggish economies worldwide during most of 2003,
each business was profitable, generated positive cash
flow, and successfully seized new opportunities for
growth and enhanced productivity.

Net Financings*
($ millions)

$427

$414

$323

$329

$223

99 00 01 02 03

* Debt (including short-term and long-term
borrowings), plus amount sold under receivables
securitization facility, less cash and cash
equivalents. See Capitalization in Management's
Discussion and Analysis.

2003 Revenues
by Segment

Brink's
Home Security
8%

Brink's,
Incorporated
42%

BAX Global
50%

A COMPANY IN MOTION

Brink’s, Incorporated

Brink’s, Incorporated, which operates in 50 countries
on six continents, enhanced its operating performance in
key geographic areas while expanding its service offerings
and global footprint in 2003. Brink’s strengthened its
management team and operational focus in Europe,
which resulted in improved performance during the year.
Similarly, our diligence, discipline, service focus and
patience were rewarded in South America, which
achieved better results in 2003 than in the prior year,
bolstered by improved economic conditions in major
countries in the region.

Customers’ needs are constantly evolving and Brink’s
anticipates those needs with new and improved services.
For example, retailers and financial institutions are
continuing to outsource all aspects of how their cash
is transported, counted and secured. Brink’s responded
to this market dynamic by forming Brink’s Cash Logistics,
offering comprehensive cash processing services. Brink’s
Cash Logistics is an important part of the future growth
and profitability of Brink’s.

Brink’s is a truly global security services and transporta-

tion company, ranking number one or number two in the
majority of the countries where it does business. In 2003,
Brink’s continued to build on its strong global presence,
expanding its operations in Belgium and Switzerland.

Anticipating trends and responding quickly to customers’

needs have produced excellent financial results over the
years. Brink’s revenues have increased in each of the last
15 years, and they have nearly doubled from $0.9 billion
in 1997 to $1.7 billion in 2003. The company’s operating
profit increased to $112.5 million in 2003, up 17% from
the prior year despite challenging conditions in Europe
and South America.

At Brink’s, we take pride in protecting and delivering
the precious cargo entrusted to us. But our first priority
is protecting the men and women who proudly wear
the Brink’s uniform. We work diligently to ensure that
our employees return safely to their families every
night. However, the world remains a dangerous place.
Tragically, we lost five of our valued Brink’s associates
who were murdered in the line of duty during 2003.

2003 Operating Profit
by Segment
(Business and Security Services)

BAX Global
2%

Brink's
Home Security
38%

Brink's, Incorporated
60%

Brink’s Home Security

Brink’s Home Security, which celebrated its 20th
anniversary in 2003, was built on the power of the Brink’s
brand name and the expectation of outstanding service
that comes with that name. The company posted another
stellar year, growing its residential subscriber base by 9%
to more than 833,000 households and small businesses in
the U.S. and Canada, earning a record operating profit of
$71.2 million, growing recurring monthly revenue to more
than $23 million, and again improving its customer retention
by achieving a customer disconnect rate of just 6.9%.

The success of Brink’s Home Security is a testament
to our approach to growing and managing this business.
Our “Customers for Life” strategy focuses on building
our subscriber base by attracting and retaining high
quality residential customers who have both solid credit
ratings and an appreciation for the value we provide.
This approach also allows us to maintain standardized
equipment that enhances our response to homeowners’
calls and the overall service experience.

In 2003, we further developed our channels for

reaching potential new home security customers,
through expanded relationships with home builders
and inspectors, as well as through high quality dealers
in selected markets.

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operating environment for the first three quarters of the
year. We are encouraged by the higher shipping volumes
late in 2003 and early in 2004, and the resulting prospect
for improved financial performance.

We achieved important goals in 2003 to refocus, grow,
and improve the performance and financial strength of our
company. At the same time, we continued to operate with
a commitment to the highest standards of ethical conduct
and corporate governance. With the prospect of better
economic conditions, the power of the Brink’s brand,
and the tireless efforts of our Board of Directors, our
management team, and close to 50,000 service-minded
employees worldwide, we stand ready to further strengthen
and grow our company.

Sincerely,

Michael T. Dan
Chairman, President and Chief Executive Officer
The Brink’s Company
March 5, 2004

BAX Global

In 2003, BAX Global continued to build upon its strong
position as a global supply chain management and logistics
solutions provider. Already a leader in the Asia Pacific
market, BAX Global expanded its operations in China,
including 140,000 square feet of warehouse space in
Xiamen, a major free-trade zone. It also expanded its
operations in Europe, opening offices in the Czech
Republic and Greece, and launching next-day, door-
to-door transportation service for all major business
centers in Europe.

In the U.S., BAX’s logistics and supply chain manage-
ment business continued to grow. The company added
several major warehouse and distribution customers
during the year, including a major document management
solutions company that chose BAX to design and manage
a new warehouse and distribution center for its parts and
supplies operation.

With service at the forefront of everything it does, BAX
launched new web-based service enhancements in 2003
that allow shippers across the world greater flexibility
and access to information in scheduling and tracking
global shipments.

BAX Global managed through a very difficult domestic

shipping environment in 2003, which continued to be
characterized by low overnight heavy airfreight volumes,
balanced somewhat by growth in BAXSaver®, a time-
definite, mode neutral delivery option, and other deferred
products. To enhance revenues and bring more overnight
shipping volume to its integrated air and ground system,
BAX launched a new freight forwarder service, providing
wholesale guaranteed airport-to-airport service to other
freight forwarders. This innovative arrangement started
small in the summer of 2003, but grew quickly, with
more than 40 freight forwarders regularly using the
BAX Forwarder Network at the end of the year.

These efforts, combined with the first signs of better
economic conditions during the fourth quarter of 2003,
position BAX to begin to demonstrate improved perform-
ance from the hard work of its 10,000 employees. BAX’s
operating profit for 2003 was $3 million, down from about
$18 million in 2002, reflecting the difficult domestic

A COMPANY IN MOTION

Brink’s, Incorporated

The Brink’s Company

The Brink’s Company, based in Richmond, Virginia, is a Fortune 500® global business and security

services company. Its three core businesses – Brink’s, Incorporated, Brink’s Home Security, and
BAX Global – generated 2003 revenues of $4 billion, with close to 50,000 employees worldwide,
and operations in over 120 countries.

Brink’s, Incorporated is a leading provider of armored car transportation, ATM servicing, currency and
coin processing and other value-added services to banks, retailers and other commercial and governmental
agencies around the world. Brink’s Home Security is the second-largest residential alarm company in
North America and a recognized leader in service quality. BAX Global is one of the world’s leading
freight transportation and supply chain management services companies.

In 1859, Perry Brink started a cartage business on the streets of Chicago. The company he started has
grown over the last 145 years to become a global leader in secure transportation and cash management services.
The Brink’s name is known around the world and has become synonymous with trust, integrity, security,
efficiency, and world-class service.

Brink’s global presence is unmatched. With more than 600 branches, 7,200 armored trucks, and a dedicated
staff of 36,000 employees operating in 50 countries on six continents, Brink’s today is the premier provider
of security services to banks, retailers, governments, mints, diamantaires and jewelers. As a service business
in which security and safety are critical, Brink’s knows that success
comes from having the right people and following the best business
practices. That’s why we conduct our business with the highest
ethical standards, and why we hire the best people and provide
them with top-notch training, benefits and support.

Brink's, Incorporated
Revenues
($ millions)

While Brink’s is recognized around the world for its armored
trucks that transport cash and other valuables, we have become
so much more than that to our customers: we are a valued business
partner and consultant. Our strategy is to leverage our global
asset base, expertise, and proven capabilities to develop and
implement security services and risk management solutions.

A Leader in Coin Processing

One of the ways Brink’s has successfully utilized its expertise
and capabilities is in coin processing. Reflecting its dedication to
speed, security and accuracy, Brink’s revolutionized the coin handling
process with innovative high-speed sorting and wrapping technology
developed and manufactured by its in-house engineering teams.
These patented machines have the highest throughput speed of
any coin sorting and counting equipment in the industry, wrapping

$1,689

$1,536 $1,580

$1,463

$1,373

99 00 01 02 03

International
North America

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A major growth opportunity for Brink’s, Incorporated is Cash Logistics, a
comprehensive cash management service. As financial institutions and
retailers continue to outsource all aspects of cash handling, Brink’s has
responded by providing a fully integrated approach to the entire cycle of
cash, including transportation, verification, counting, deposit processing,
vaulting and electronic information exchange.

A COMPANY IN MOTION

coin in proprietary see-through, split-proof plastic. Brink’s is the world’s largest provider of coin wrapping
and processing services, handling more than 1.2 billion wraps per year in the U.S. alone for retailers,
highway authorities and operators of retail coin counting machines.

Growth: From ATMs to Cash Logistics

For Brink’s, automated teller machine (ATM) servicing was a logical extension of its cash-in-transit services

provided to banks, as it too requires highly trained guards, armored trucks and secure facilities. Brink’s is a
leader in providing comprehensive ATM services to banks and to other ATM operators through the Brink’s
ATM Management System that delivers timely and convenient consolidated electronic reporting and cash
replenishment information. While new ATM installations have slowed in the United States from the rapid rate
of the 1990s, there are growth opportunities in international markets and Brink’s continues to derive a sizable
portion of its total business from ATM services.

Building upon Brink’s deep experience and leading role in handling and processing cash, Brink’s expanded

into cash logistics, a significant growth opportunity. Brink’s Cash Logistics involves all of the elements of
traditional supply chain logistics: transportation, storage, inventory management, order fulfillment, accounting,
and most importantly, security. Brink’s provides fully integrated management of the entire cycle of cash from
point-of-sale through deposit at the bank. The process includes cashier balancing and reporting, deposit
processing and consolidation, and electronic information exchange. In short, Brink’s Cash Logistics enables
financial institutions and retailers to outsource noncore activities, allowing them to focus instead on value-added
product and service enhancements.

Building on Services to Create Solutions

Every day, commerce grows increasingly sophisticated and technology-
enabled. As businesses respond by changing the way they operate, Brink’s
is able to both adapt and anticipate new ways to serve customers. Demand
for Brink’s services has grown, as financial institutions, retailers and others
are seeking a trusted service provider with the ability, the strength and
the desire to also be a partner in improving efficiencies, reducing costs,
and reducing risk – all while contributing to a better bottom line.

Anticipating and understanding customers’ needs is a Brink’s
hallmark. It is this drive to bring solutions to customers that led to
the development of the CompuSafe® service in the late 1990s.
CompuSafe® service represents the Brink’s operating model today,
in which the company consults with customers, develops solutions,
then engineers and implements the process, including the integration
of accounting and technology requirements.

CompuSafe® service is a proprietary, closed-loop, cash manage-
ment system for cash intensive retail businesses, offering the most
advanced computerized, single-source cash handling capabilities
available today. Using innovative hardware and software, CompuSafe®
service incorporates paper currency recognition technology that reads
and validates bills, stores notes in secure cassettes, manages sales

Brink's, Incorporated
Operating Profit
($ millions)

$113

$109

$104

$96

$92

99 00 01 02 03

International
North America

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A Tradition of Trust

For nearly a century and a half, the

world has put its trust in Brink’s to
transport and safeguard well-known
valuables. This tradition of trust started
as early as 1860, when Brink’s carried
the luggage of the delegates to the
Republican convention in Chicago that
nominated Abraham Lincoln for president.

Among the valuables that Brink’s

has transported are:

• The U.S. Declaration of Independence;

• The first rock samples that the

astronauts brought back from the moon;

• The diamonds that Richard Burton

gave to Elizabeth Taylor;

• The bat Hank Aaron used to break

Babe Ruth’s home-run record;

• Trophies for the world’s premier
sporting events including the
Lombardi Trophy, the World Cup,
the Stanley Cup, the Davis Cup,
and the America’s Cup.

reconciliation and interfaces with back office systems and point-of-service
units. CompuSafe® service helps reduce costs associated with cash-
intensive environments, including loss prevention and accounting, and
reduces concerns about the security of cash. With more than 4,300 units
in service today, Brink’s continues to market this value-added service to
national gas stations and fast-food retailers, and is working with operators
of larger restaurant chains and retail stores to implement similar cash
management solutions.

Providing Global Services

Like CompuSafe® service and Cash Logistics, Brink’s Global Services

is a logistics-based solution for moving valuables around the world that
leverages the company’s assets and expertise. Global Services combines
the planning, storage and secure transportation of diamonds, jewels,
precious metals, and other high-value items worldwide. Brink’s handles
the ground transportation and arranges for secure air transportation, as
well as customs and other requirements.

Investing in Our Future

In 2003, Brink’s invested more than $80 million to support growth,
to strengthen the company’s technology base, and to keep pace with the
service requirements and increasing sophistication of our customers.

The company also expanded in selected markets around the world.
Brink’s strengthened its presence in Europe by acquiring a cash handling
operation in Belgium and by purchasing the remainder of its joint venture in
Switzerland. In the U.S., several new facilities have been added, including a
75,000 square-foot, state-of-the-art armored coin and cash handling facility
in Chicago that also houses a museum honoring the proud heritage of
Brink’s in the city where the company was founded.

A Platform for Growth

The company’s global presence is particularly important to customers
that are expanding internationally. As they grow and reach into new markets,
Brink’s customers are looking for partners with the right resources, the best
technologies, the most security expertise, and a solid track record of
managing risk. Brink’s has it all.

For Brink’s, the goal is straightforward: to be the world’s leading risk
manager for cash logistics and high-value markets by offering customers
integrated services driven by advanced technology. In a marketplace with
many competitors, both locally and worldwide, Brink’s works continuously
to maintain the “Brink’s Difference” – service, technological sophistication,
risk management expertise, and security performance.

A COMPANY IN MOTION

Brink’s Home Security

Brink’s Home Security was founded in 1983 to seize upon an emerging opportunity in the residential
security market. Over the last two decades, Brink’s Home Security has leveraged the strong Brink’s brand and
unparalleled reputation for security services to become the second largest residential alarm company in the U.S.
Brink’s Home Security now serves more than 833,000 customers in 44 states and two provinces in Canada.
Concerns over personal safety and security have been heightened by recent U.S. and world events. The FBI
reports that a burglary occurs in the U.S. about every 15 seconds. Meanwhile, studies have shown that a home
without a security system is two to three times more likely to be burglarized. In fact, the vast majority of police
believe that home alarms help deter burglary attempts. That’s why Brink’s Home Security provides its valued
customers with rapid response and peace of mind, 24 hours a day.

From the beginning, Brink’s Home Security has been dedicated to creating “Customers for Life” by providing
them the best in security and superior customer care. From system installation and activation, to alarm response
and inquiry handling, Brink’s Home Security emphasizes customer satisfaction. This unwavering commitment
enabled Brink’s Home Security to further reduce its annual customer disconnect rate to 6.9% in 2003, the best
subscriber retention rate among major residential alarm companies.

Leading with Service and Technology

Brink’s Home Security’s 2,600 employees are sharply focused on achieving customer satisfaction with
each customer contact. The professionalism of sales consultants, the skill of certified technicians, and the
thoroughness of the company’s monitoring and customer-care representatives have fueled Brink’s Home
Security’s rapid growth and strong customer loyalty.

Diligent efforts to ensure the highest quality installation standards have earned the company the prestigious
Installation Quality (IQ) Certification. Brink’s Home Security is the only national security company to attain this
designation from the Installation Certification Board, an organization of police, fire, insurance, security, and state
regulatory professionals. The IQ designation reflects the company’s continuous adherence to strict installation
and false alarm reduction guidelines, as well as customer service standards of quality.

After installation, Brink’s Home Security provides orientation, including a video training manual, that
ensures that customers are fully familiar with the system while also helping to reduce false alarms and
follow-up calls. When a customer does call, Brink’s Home Security is well-equipped to handle the inquiry
with thoroughly trained representatives who have highly advanced information systems at their fingertips.
In 2003, Brink’s Home Security launched MyCustomer, a new tool that empowers service representatives
to more quickly and easily retrieve important customer account information, trouble-shoot equipment,
and answer questions. In addition to telephone-based customer care, Brink’s Home Security also offers
MyBrinks.com, a robust website where customers can pay bills, manage their account, and get answers
to common questions.

Alarms are handled by the company’s award-winning, state-of-the-art Customer Monitoring Center in Irving,
Texas. The center not only provides prompt response, but it utilizes a customer data system to help identify and
address many customer or equipment issues before they arise.

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From its award-winning Customer Monitoring Center, Brink’s Home Security provides “peace of mind, 24 hours a day”
for its more than 833,000 subscribers. This state-of-the-art facility features the latest information and communication
technology and highly trained monitoring representatives equipped to provide rapid response and professional service.

Brink’s Home Security

Total Subscribers
(in thousands)

Subscriber Disconnect Rate
(percent)

Revenues/Operating Profit
($ millions)

833

767

714

675

643

7.8% 7.6% 7.6%

7.1% 6.9%

$311

$282

$258

$238

$229

$54

$55

$71

$61

99 00 01 02 03

Revenues
Operating Profit

A COMPANY IN MOTION

Investing in Growth

Brink’s Home Security invested nearly $100 million in its business in 2003, with more than 90% of
these expenditures going toward the addition of new customers. The company’s capital expenditures also
funded a computer system upgrade to help ensure that Brink’s Home Security maintains its outstanding
service and response capabilities.

In 2003, the company grew its subscriber base by more than 66,000, representing a net growth rate of
9%. Brink’s Home Security has built a quality subscriber base by targeting customers with solid credit histories
who value the high-quality service the company provides. Brink’s Home Security continues to grow through
its traditional mass marketing to single-family homeowners, as well as through newer channels. For example,
Brink’s Home Security works closely with most of the top national home builders to install low-voltage wiring
and cabling that interconnects telephones, televisions, computers, sound systems and home theaters – in
addition to security systems. The company also has a small but growing presence in the multi-family and
commercial alarm markets.

About 90% of the company’s sales and installations are handled by its own representatives and technicians.
To increase its geographic reach and better leverage its national marketing programs, Brink’s Home Security
utilizes highly qualified dealers in markets where it does not have a branch office. These exclusive dealers
receive training at “Brink’s Home Security University” to ensure the same level of quality installation and
service provided by branch offices. The company now services most metropolitan markets in the United
States and western Canada through its branch offices and dealers.

There is substantial additional growth opportunity in the U.S. home security sector, as market penetration

is estimated to be less than 30%, while new single-family home construction has averaged more than one
million units annually over the last 12 years and strong growth is expected to continue.

Reflecting the disciplined execution of its strategy – to provide superior service through advanced technology
and commitment to customer satisfaction – Brink’s Home Security today is a growing industry leader with strong
operating profits and cash flow, and an enviable position as the standard bearer for service quality in the industry.

In 2003, Brink’s Home Security celebrated its
20th year in business. The company’s success
has been driven by working tirelessly to attract
quality customers and to provide them outstanding
service, seeking to make them “Customers for
Life.” To mark this special occasion, the company
was pleased to recognize several customers who
have been with Brink’s Home Security from the
beginning. In November 2003, representatives
from the company, with help from sister company
Brink’s, Incorporated, brought a home safe filled
with tokens of appreciation in armored cars to a
few of these customers in Portland, Oregon to
thank them for their long and loyal patronage.

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BAX Global

Meeting the Needs of a Changing Market

A major software firm requires global distribution of a new product in 90 days. An international

producer of hospital products needs temperature-controlled inventory management throughout
Southeast Asia. A global retailer of clothing and accessories is looking for inbound supply chain
management from emerging third-world manufacturing facilities. Just a few years ago, these
sophisticated requests were the exception; now they are the norm.

As manufacturers and retailers expand into global markets and seek new international sourcing
opportunities, BAX Global has expanded its portfolio of services, offering the full spectrum of supply
chain management (SCM) and logistics services. BAX Global’s broader focus is in response to several
major global trends driving and changing the transportation industry:

• Shippers’ focus on time and price, rather than mode of transportation;
• Growth in global procurement programs encompassing the entire supply chain process;
• Customers evaluating transportation suppliers based on ease of systems integration and SCM technology;
• Growth of contract manufacturing (especially in Asia);
• Concerns over security and shipment integrity; and
• Growing demand for global air and ocean freight and SCM.

From Transportation to Supply Chain Management

In 2000, BAX Global saw that international transportation demand would grow much faster than
the North American market, domestic shippers would continue to de-emphasize expedited transportation
for deferred options, and the demand for SCM services would grow exceptionally quickly.

The migration in North America from expedited transportation

services to less costly deferred options has been driven by
improved information resources, the availability of sophisticated
decision support programs, and the global recession.

Similar demands are shaping international markets. Outsourced

manufacturing initiatives lead to increased demand for global
import and export services. The international market has always
used ocean as its primary transportation mode. Expedited carriers
now have moved into the deferred end of the transportation
spectrum offering time-definite surface and ocean options.

Understanding these trends, BAX Global made changes to its
business model. Over the last five years, BAX has transitioned from
an expedited air cargo firm to a fully mode-neutral SCM company.
Within North America, we established BAXSaver®, a time-definite,
mode-neutral product that heavily utilizes a surface transportation
network to move a majority of the freight. This product offers
customers a lower-priced option, while allowing BAX Global
to achieve an attractive margin.

BAX Global
Revenues
($ millions)

$2,083 $2,098

$1,999

$1,872

$1,790

99 00 01 02 03

A COMPANY IN MOTION

Today, BAX Global is recognized as a SCM and third-party logistics (3PL) provider offering a full complement

of global transportation options. BAX Global was awarded the “2003 Quest for Quality” award in the 3PL
category by Logistics Management magazine and was named in the “Top 100 3PLs” by Inbound Logistics
magazine. These awards confirm BAX Global’s strengths, including local market expertise through 500 offices
worldwide, cutting-edge technology services, and an experienced team.

A Leader in Asia Pacific

BAX Global is especially strong in the Asia-Pacific market, thanks to a reputation for service quality and
supply chain relationships with global customers. BAX Global is one of the top five 3PLs and cargo agents
in Asia, and has 75 offices in 24 countries with over 2.7 million square feet of space in 25 regional logistics
centers throughout Asia-Pacific.

BAX Global has a strong footprint in the growth regions of China, where many global companies are
opening production facilities, and a customer list focused in high-tech, consumer goods/fashion, healthcare
and aerospace. Among its long-time accounts is a major fashion retailer, for which BAX Global established
a regional supply chain control network, providing production tracking management and control, purchase order
management, inventory status – even pick and pack for order consolidation. The customer benefits have included
lower costs, better production control, and greater visibility of products at the point of consumption.

BAX Global offers companies a wide array of comprehensive supply chain management solutions ranging from
warehousing, inventory management and order fulfillment to transportation optimization and customs compliance.
Shown here is a state-of-the-art “pick and pack” system for a leading global supplier of digital copiers and other
document solutions. This system automates order processing, parts retrieval and order packing for shipment.

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Positioned for a Recovery in North America

In the Americas region, market conditions were difficult throughout most
of 2003. However, shipping activity picked up late in the year as the economy
improved and BAX Global had several significant new business wins in the
high-tech, computer and machinery industries. The North American supply
chain management group reached critical mass in 2003, with strong
revenue growth reflecting the addition of customers in the high-tech
and consumer electronics markets.

In mid-year, the company launched the BAX Forwarder Network, which
targets potential customers in the freight forwarding, freight brokerage and
international airline segments. This wholesale service provides guaranteed
and standard airport-to-airport freight delivery, plus time-definite ground
services. It gives forwarders a menu of options to meet their customers’
needs and allows BAX Global to participate in a $1.25 billion marketplace.
Initial response has been excellent, with more than 40 new forwarder
customers using the service in 2003.

Expanding in Europe and Latin America

During 2003, BAX Global expanded its geographic coverage in Europe,
adding offices in the Czech Republic and Greece. Today, the company has
19 logistics facilities within Europe. BAX Global also enhanced its European
distribution product, with an expedited delivery option called EuroBAXFast.
This service supports our expertise in SCM programs for customers in the
healthcare, aerospace, high-tech, and automotive sectors. In Latin America,
BAX is building its footprint through strategic affiliations with agents and
opening new offices in markets important to our customers, including those
in Argentina and Peru.

Building Ocean Freight Capabilities

Recently, BAX enhanced the ocean forwarding segment of its business
with renewed sales initiatives, along with increased investments in the best
people, information systems and infrastructure, to accelerate growth in this
important part of the international market. This investment reflects our
response to customers’ demand to increase our ocean forwarding expertise.

Differentiation through Leading-edge Technology

BAX Global uses its technological capabilities as a market differentiator.

Once considered an added feature, electronic data interfaces are now
essential to winning business and growing existing accounts. Supply
chain programs are heavily dependent on information and electronic
interface. BAX Global supports customers with 30,000 daily electronic
data interface transactions and 2.4 million web-based shipment tracking
transactions annually. The MyBAX extranet creates an online shipping

Air Transport International L.L.C.

Air Transport
International L.L.C.
(ATI) is a U.S. airline
headquartered in Little
Rock, Arkansas. ATI offers a full range of
worldwide contract and charter services
to air cargo forwarders and brokers, other
airlines, major corporations, petroleum
services companies, government and
military agencies and other customers
with special requirements. ATI’s fleet of
re-engined DC8 70-series jet freighters
is a major provider of scheduled lift for
BAX Global’s U.S. air network. These
long-range, fuel-efficient aircraft are capable
of global as well as domestic flights.
ATI’s daily operations include such
diverse activities as the movement of
thoroughbred racehorses from Europe
and Asia to the U.S., field support of
on-location movie productions, city-to-city
transportation of touring music and stage
shows, relocation of rare animals for
aquariums and zoos, and scheduled
flights under contract to the U.S.
Government. In early 2004, ATI moved
a group of rare endangered bongo
antelope that were born in the U.S.
back to their native Kenya.

ATI is licensed by the U.S. Federal

Aviation Administration and the U.S.
Department of Transportation to conduct
worldwide cargo and passenger operations.
ATI manages its worldwide activities 24
hours a day, 365 days a year, from its Little
Rock headquarters with a team of 500
dedicated employees for whom safety,
service, efficiency and value are interwoven
with all aspects of managing the airline.

A COMPANY IN MOTION

resource for over 7,000 regular users where customers can book, track, or
create custom reports 24/7 from virtually any spot on the globe. Web-enabled
technology reduces costs for BAX Global and our customers, and makes it
easy to do business with BAX Global.

Positioning BAX in the Marketplace: 2004 and Beyond

BAX Global will continue to focus on strengthening its market position
in aerospace, automotive/heavy manufacturing, healthcare, high-tech and
retail/consumer goods. BAX Global understands the unique needs in each
of these segments and brings special value to its business relationships.

The company has greatly enhanced its SCM skill sets worldwide to meet the
strong growth it is experiencing and will continue to build on this strong platform.
BAX will also focus on the $65 billion ocean-forwarding market, especially with
end-to-end cargo management programs between Asia and the U.S. aimed at
the retail segment.

As economic activity increases in the U.S., BAX Global will continue
to focus on superior service while pursuing further economies in its North
American network. The BAXSuite domestic service portfolio will be enhanced
with more surface options that will enable BAX to leverage additional import
and export volumes over the network.

BAX Global
Operating Profit
($ millions)

$61

$18

$(28)

$(100)*

99 00 01 02 03

* Includes restructuring charges of $57.5 million.

When Microsoft’s OEM Hardware Group
needed an outsourced logistics solution
for distributing products from multiple
vendors to their customers worldwide,
they chose BAX Global. BAX fast-tracked
the opening of distribution hubs in Dallas,
Sydney, Hong Kong and Ridderkirk using
a common, interconnected information
platform and common operating proce-
dures to ensure uniformity of service
levels. BAX saw the opportunity to also
provide value-added services such as
order fulfillment, inventory management,
scrap and returns management in a virtual
inventory environment. As a result of
BAX’s successful management of this
program Microsoft has extended its
agreement with BAX for an additional
two years. With Microsoft, BAX Global
proved that excellent customer support
and service has evolved to be a crucial
competitive advantage.

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2 0 0 3 F i n a n c i a l R e v i e w

The Brink’s Company

2003 Annual Report

2003 ANNUAL REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION

OPERATIONS

The Brink’s Company (along with its subsidiaries, the “Company”) has three operating segments within its
“Business and Security Services” businesses:

• Brink’s, Incorporated (“Brink’s”)

Brink’s offers services globally including armored car
transportation, automated teller machine (“ATM”)
replenishment and servicing, currency and deposit
processing including its “Cash Logistics” operations, coin
sorting and wrapping, arranging the secure air transportation
of valuables (“Global Services”) and the deploying and
servicing of safes and safe control devices, including its
patented CompuSafe service.

• Brink’s Home Security, Inc. (“BHS”) BHS offers monitored security services in North America

• BAX Global Inc. (“BAX Global”)

primarily for owner-occupied, single-family residences. To a
lesser extent, BHS offers security services for commercial
properties. BHS typically installs and owns the on-site
security systems, and charges fees to monitor and service
the systems.

BAX Global provides freight transportation and supply chain
management services on a global basis, specializing in the
heavy freight market for business-to-business shipping.

The Company has significant liabilities associated with its former coal operations and expects to have significant
ongoing expenses and cash outflows related to former coal operations. At December 31, 2003, the Company
had approximately $105 million of assets held by a Voluntary Employees’ Beneficiary Association trust (“VEBA”)
available to pay a portion of these liabilities. Information about the Company’s liabilities related to its former
coal business is contained in a number of sections of this report, including:

• Retained Liabilities and Assets of Former Natural Resource Operations
• Application of Critical Accounting Policies

Disclosures in these sections show five-year projections for estimated ongoing payments and expense
associated with the former coal business, reconcile a Company-defined term, “Legacy Value”, to U.S. generally
accepted accounting principles (“GAAP”) measures, and discuss critical estimates used, providing a sensitivity
analysis for these estimates.

The Brink’s Company

2003 ANNUAL REPORT

RESULTS OF OPERATIONS

Overview

(In millions)

2003

2002

2001

2003

2002

Years Ended December 31,

% change

Income (loss) from:

Continuing operations

Discontinued operations

Net income

18.2

11.2

29.4

69.4

(43.3)

26.1

38.3

(21.7)

16.6

(74)

(100)

The income (loss) items in the above table are reported after tax.

The Company’s results from continuing operations have varied in the last couple of years due partially to
changes the Company has made to reduce costs and improve efficiency and partially as a result of changes in
economic conditions. The Company’s results were also affected by the required movement of certain expenses
related to former coal operations from discontinued operations to continuing operations. These factors are
expected to continue to affect the Company’s results in future periods. There were impairment charges, gains
on the divestiture of natural resource operations and an adjustment to deferred taxes which are less likely to
recur in the future.

Continuing Operations

Business and Security Services
Brink’s and BHS reported improved operating profit in both 2003 and 2002 over prior-year periods. BAX
Global’s operating profit has been more volatile in the last three years: about break-even in 2003, profitable in
2002 and a loss in 2001.

Operating profit at Brink’s in 2003 improved 17% from the prior year on higher international earnings. Brink’s
operating profit in the fourth quarter of 2001 and the first quarter of 2002 reflected the benefit of special euro
currency processing and transportation work. Costs were higher than normal in relation to revenue in the first
nine months of 2001 and the last nine months of 2002 as a result of higher staffing levels related to the euro
work. Staff reductions in various European countries in late 2002 and the first half of 2003 improved profitability
in the last half of 2003 compared to the same 2002 period. Operating profit in South America was stronger in
2003 compared to the weak 2002; 2002 was affected by economic and political turmoil in several South
American countries.

Strong growth in BHS’ operating profit in 2003 (17%) and 2002 (11%) resulted primarily from the steady
subscriber growth of the last two years and improving efficiency. The average number of subscribers increased
8% in 2003 over 2002 and 7% in 2002 over 2001.

Although the fourth quarter comparison was favorable versus the prior-year quarter, BAX Global’s full year 2003
operating profit was below 2002 levels primarily as a result of lower shipments through its largely fixed-cost
Intra-America transportation network due to the weak U.S. economy seen for much of 2003 and a continuing
shift away from expedited freight by customers. Volume in the Intra-America network was also lower in 2002
compared to 2001, but reductions in the number of airplanes used to service the network in 2001 and other cost
reductions allowed BAX Global to improve results in 2002 compared to 2001.

The Brink’s Company

2003 ANNUAL REPORT

Cost of Former Coal Operations
With the completion of its plan to exit the coal business, the Company began in 2003 to reflect within continuing
operations the costs and expenses related to employee benefit expenses, administration and other charges
related to the liabilities retained from the former natural resource businesses. Accordingly, pretax results for
2003 include total costs of former coal operations of approximately $70 million. These types of costs were
recorded within discontinued operations in earlier years. These costs will continue to affect results of operations
well into the future. However, due to the normal wind down of administration and other expenses, the sale of
most of the remaining idle properties in late 2003, the enactment of the Medicare reform bill in December 2003
and the growth in the value of the Company’s VEBA, these costs are expected to decrease by over $20 million
in 2004.

Divestitures and Taxes
In 2002, the Company recorded a $19.2 million (pretax) charge related to impairment and other charges
associated with coal properties which were shut down and prepared for sale. Most of these properties were
sold in 2003. When actions are completed by the purchaser to formally assume additional liabilities associated
with the properties (expected to happen during 2004), the Company expects to record a gain in continuing
operations.

In 2003, the Company recorded a $10.4 million (pretax) gain on the sale of shares that it held in an Australian
exploration and mining Company.

Neither the impairment charge related to coal nor these gains are expected to recur, although other gains and
impairment losses may occur in the future.

The Company performs an annual review of deferred tax assets as required by Statements of Financial
Accounting Standards (“SFAS”) No. 109, “Accounting for Income Taxes.” In 2001 and 2002, the Company
recorded valuation adjustments of under $2 million per year to reflect its judgment that the ability to utilize
deferred tax assets for certain entities was not more likely than not to happen. As a result of a recent history of
losses, and continuing recession in the U.S. and Europe in 2003, the Company believes that the ability to use
deferred tax assets related to two international operations and certain states no longer meets the more-likely-
than-not standard. Accordingly, a valuation charge of approximately $22 million was recorded in 2003.

Since the Company performs a review of its deferred tax assets annually, there could be further valuation
charges required in future years. On the other hand, if operations in affected jurisdictions return to profitability,
the Company may reverse all or a portion of the valuation reserves in future years.

In estimating its effective tax rate to be recorded in 2004 and later years, the Company will not record the
potential benefit of any losses in the tax entities for which it has already recorded a valuation adjustment unless
such entities demonstrate an ability to consistently use tax benefits (e.g. through a return to profitability). As a
result, the effective tax rate for 2004 will be higher than historical rates for normal operations. The Company
currently estimates its effective tax rate for 2004 will approximate 40%. It reevaluates this rate on a quarterly
basis; the actual tax rate could be materially different from the Company’s estimate.

Discontinued Operations
Over the past three years, the Company sold essentially all of its natural resource businesses, the biggest being
its former coal operations. The Company recognized a significant loss on the sale of its coal business, although
most of the loss was recognized in 2000, a period not presented in this report. In addition to the loss on sale,
the Company has accrued significant liabilities related to benefits for former coal employees. Expenses related
to some of these liabilities (including revisions to estimated amounts primarily related to Health Benefit Act
obligations and multi-employer pension plan withdrawal liabilities) are recorded in discontinued operations and
were significant in 2003 and 2002. In 2002 and 2001, significant coal operating losses were also included in
discontinued operations.

The Brink’s Company

2003 ANNUAL REPORT

Besides the coal operations, discontinued operations also includes gains and losses from the sale of other
noncore businesses and their operating results for all years presented. These operating results have been
reclassified from prior year’s presentations within continuing operations.

• Natural gas business – sold in August 2003 for a $56.2 million pretax gain
•

Timber business – sold a small portion in December 2003 and completed the sale in 2004 for an
expected $26 million overall pretax gain ($4.8 million recognized in 2003)

• Gold business – sold in early 2004. Pretax impairment losses were recognized in 2003 ($1.7 million)

and 2002 ($5.7 million).

Consolidated Review

Revenues

Operating Profit (Loss)

Years Ended December 31,

% change

Years Ended December 31,

% change

(In millions)

2003

2002

2001

2003

2002

2003

2002

2001

2003

2002

Business Segments

Brink’s

BHS

$ 1,689.0

1,579.9

1,536.3

310.4

282.4

257.6

BAX Global

1,999.2

1,871.5

1,790.1

Business and

Security Services 3,998.6

3,733.8

3,584.0

Former coal operations

Gain on sale of equity

Interest

Corporate

$ 3,998.6

3,733.8

3,584.0

$ 112.5

71.2

3.0

96.1

60.9

17.6

92.0

54.9

(27.6)

(83)

186.7

174.6

119.3

(69.5)

(19.2)

10.4

(27.8)

(23.1)

(21.5)

(200+) NM

$ 99.8

132.3

97.8

(25)

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.

The Brink’s Company

2003 ANNUAL REPORT

Brink’s, Incorporated

(In millions)

Revenues

North America (a)

International

Operating Profit

North America (a)

International

Cash Flow Information

Depreciation and amortization,

excluding goodwill

amortization

Goodwill amortization

Capital expenditures

(a) U.S. and Canada.

2003

Years Ended December 31,

% change

2003

2002

2001

2003

2002

716.2

972.8

694.9

885.0

680.3

856.0

1,689.0

1,579.9

1,536.3

53.4

59.1

112.5

70.6

N/A

80.9

52.2

43.9

96.1

61.3

N/A

79.3

42.4

49.6

92.0

60.1

2.1

71.3

(11)

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.

The Brink’s Company

2003 ANNUAL REPORT

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.

The Brink’s Company

2003 ANNUAL REPORT

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.

Brink’s Home Security

Years Ended December 31,

(In millions)

Revenues

2003

2002

310.4

282.4

Operating Profit

Recurring services (a)

Investment in new subscribers (b)

Monthly recurring revenues (c)

Cash Flow Information

Depreciation and amortization (d)

Impairment charges from subscriber

disconnects

Amortization of deferred revenue (e)

Deferred subscriber acquisition costs

2001

257.6

100.9

(46.0)

54.9

125.9

(54.7)

71.2

109.5

(48.6)

60.9

23.3

21.1

19.2

47.9

43.9

36.8

34.3

(25.0)

32.3

(23.9)

33.8

(23.9)

% change

2003

2002

(13)

(6)

(4)

(current year payments)

(18.4)

(17.7)

(14.9)

Deferred revenue from new subscribers

(current year receipts)

Capital expenditures

28.2

(98.0)

27.1

(86.9)

27.0

(81.3)

(a) Reflects operating profit generated from the existing subscriber base including the amortization of deferred revenues.

(b) Primarily marketing and selling expenses, net of the deferral of direct selling expenses (primarily a portion of sales commissions), incurred

in the acquisition of new subscribers.

(d) Includes amortization of deferred subscriber acquisition costs.

(e) Includes amortization of deferred revenue related to active subscriber accounts as well as acceleration of amortization of deferred revenue

related to subscriber disconnects.

The Brink’s Company

2003 ANNUAL REPORT

Overview
Operating profit comprises recurring services minus the cost of the investment in new subscribers. Recurring
services reflects the monthly monitoring and service earnings generated from the existing subscriber base,
including the amortization of deferred revenues. Impairment charges from subscriber disconnects and
depreciation and amortization expenses, including the amortization of previously deferred direct costs from
installations, are also charged to recurring services. Recurring services is affected by the size of the subscriber
base, the amount of operational costs including depreciation, the level of subscriber disconnect activity and
changes in the average monitoring fee per subscriber.

Investment in new subscribers is the net expense (primarily marketing and selling expenses) incurred in adding
to the subscriber base every year. The amount of the investment in new subscribers charged to income may be
influenced by several factors, including the growth rate of new subscriber installations and the level of costs
incurred in attracting new subscribers. As a result, increases in the rate of investment (the addition of new
subscribers) may have a negative effect on current segment operating profit but a positive impact on long-term
operating profit, cash flow and economic value.

Capital expenditures are primarily the equipment, labor and related overhead costs associated with system
installations for new subscribers.

Subscriber Activity

(Subscriber data in thousands)

2003

2002

2001

2003

2002

Years Ended December 31,

% change

Number of subscribers:

Beginning of period

Installations

Disconnects

End of period

Average number of subscribers

766.7

121.9

(55.1)

833.5

797.5

713.5

105.8

(52.6)

766.7

739.0

675.3

90.9

(52.7)

713.5

693.5

(5)

Annualized disconnect rate (a)

6.9%

7.1%

7.6%

(a) The disconnect rate is a ratio, the numerator of which is the gross number of customer cancellations during the period and the denominator

of which is the average number of customer subscribers for the period. The gross number of customer cancellations is reduced for
customers who cancel service at one location but continue service at a new location, customer accounts acquired from dealers that cancel
during a specified contractual term that allows the account to be charged back to the dealers, and inactive sites that return to active service
during the period.

Installations increased 15% for 2003 and 16% for 2002 as compared to the prior-year periods primarily as a
result of growth in traditional as well as newer customer acquisition channels. BHS believes its 2003 and 2002
annualized disconnect rates improved over the respective prior-year periods largely due to the cumulative effect
of having improved its subscriber selection and retention processes in recent years and its high quality customer
service.

2003
The increase in BHS’s revenues for 2003 versus 2002 was primarily due to an 8% larger average subscriber
base, as well as a higher average monitoring rate, higher revenue from home builders and higher service
revenues. The slight increase in average monitoring rates is primarily due to new customers initiating service at
generally higher monitoring rates than the average rate being paid by existing customers. The above factors
also contributed to a 10% increase in monthly recurring revenues as measured at year end.

The Brink’s Company

2003 ANNUAL REPORT

Operating profit increased 17% in 2003 from 2002 as higher profit from recurring services was partially offset by
an increased investment in new subscribers. Higher profit from recurring services was primarily due to
increased monitoring revenues from the larger average subscriber base as well as improved service margins,
partially offset by higher depreciation and other costs associated with the larger subscriber base. Investment in
new subscribers increased 13% on 15% higher installations during 2003 reflecting more effective marketing and
installation efforts partially offset by an investment in additional sales infrastructure to support expansion of
installation services offered to home builders.

2002
Revenues increased 10% in 2002 primarily due to a 7% larger average subscriber base, as well as higher
average monitoring rates, higher revenues from home builders and higher service revenues. These factors also
contributed to a 10% increase in monthly recurring revenues as measured at year end.

Operating profit for 2002 increased 11% as higher profit from recurring services was partially offset by an
increased investment in new subscribers. Higher profit from recurring services was primarily due to increased
monitoring and service revenues resulting from a larger average subscriber base and 4% lower impairment
charges reflecting a lower disconnect rate, partially offset by increased depreciation from the larger number of
security systems and higher monitoring costs. Investment in new subscribers increased only 6% on 16% higher
installations during 2002, reflecting more effective marketing and installation efforts and the use of new
distribution channels.

Other
On October 1, 2003, a national “Do Not Call” list was implemented in the United States. Although most of its
new subscribers are attracted through other means, a portion of BHS’ new installations are initiated by calls to
potential customers. Since there are other ways to initiate a sale, the overall impact that the “Do Not Call” list
will have on BHS’ ability to attract new subscribers, or the costs to attract new subscribers, cannot be
determined at present.

Police departments in two major western U.S. cities are not required to respond to calls from alarm companies
unless an emergency has been visually verified. If more police departments in the future refuse to respond to
calls from alarm companies without visual verification, this could have an adverse effect on future results of
operations for BHS.

Reconciliation of Non-GAAP Measures - Monthly Recurring Revenues

The purpose of this table is to reconcile monthly recurring revenues, a non-GAAP measure, to its closest GAAP
counterpart, BHS’ total revenues.

(In millions)

2003

Monthly recurring revenues (“MRR”) (a)

23.3

Amounts excluded from MRR:

Amortization of deferred revenue

Other revenues (b)

Revenues on a GAAP basis:

December

January – November

January – December

2.0

2.4

27.7

282.7

310.4

Years Ended December 31,

2002

21.1

2.0

1.2

24.3

258.1

282.4

2001

19.2

1.8

1.6

22.6

235.0

257.6

(a) MRR is calculated based on the number of subscribers at period end multiplied by the average fee per subscriber received in the last

month of the period for contracted monitoring and maintenance services.

(b) Revenues that are not pursuant to monthly contractual billings.

The Brink’s Company

The Company believes the presentation of MRR is useful to investors because the measure is widely used in
the industry to assess the amount of recurring revenues from subscriber fees that a home security business
produces.

2003 ANNUAL REPORT

Years Ended December 31,

% change

2003

2002

2001

2003

2002

BAX Global

(In millions)

Revenues

Americas (a)

International (b)

Eliminations

976.0

1,098.3

(75.1)

989.9

951.7

(70.1)

1,008.1

845.0

(63.0)

1,999.2

1,871.5

1,790.1

Operating Profit (Loss)

Americas (a)

International (b)

Corporate and other

Cash Flow Information

Depreciation and amortization,

excluding goodwill

amortization

Goodwill amortization

Capital expenditures

Operating Statistics

(30.9)

41.2

(7.3)

3.0

47.0

N/A

23.6

(15.1)

43.8

(11.1)

17.6

44.4

N/A

27.1

(46.0)

35.6

(17.2)

(27.6)

49.4

7.4

33.1

(1)

(7)

(105)

(6)

(83)

N/A

(13)

Intra-America revenue

464.6

468.6

457.3

(1)

Worldwide expedited freight

services:

Revenues

Weight in pounds

1,501.0

1,575.8

1,452.4

1,530.3

1,427.2

1,424.4

(a) U.S., Mexico, Latin America and Canada.

(b) Europe-Middle East-Africa (“EMEA”) and Asia-Pacific.

(2)

(11)

(10)

(18)

(2)

Profits are shared among the origin and destination subsidiaries on most export volumes. Performance in BAX
Global’s U.S. business, the region with the largest domestic and export volume, significantly affects the results
of worldwide expedited freight services. Eliminations revenues primarily reflect intercompany revenue
eliminations on shared services.

The Brink’s Company

BAX Global operates throughout most of the world. Revenues in each region include both expedited and
nonexpedited freight services.

2003 ANNUAL REPORT

BAX Global’s Products

Expedited Freight Services
• Overnight delivery
• Second-day delivery
• Wholesale freight forwarding
• Air import and export delivery

Nonexpedited Freight Services
• BAXSaver Suite of deferred delivery products

(various deferred delivery terms)

• Customs brokerage services
• Supply chain management services
• Aircraft charter services
• Ocean delivery

2003

Region offered
Worldwide

Worldwide

Americas

Worldwide

Americas

Worldwide

Overview
BAX Global’s operating profit in 2003 was $14.6 million below last year despite a 7% increase in revenues (3%
increase in revenues on a constant currency basis). Revenue was lower in the Americas, higher in Asia-Pacific,
and higher in Europe, where it would have been lower except for the effect of currency changes. Operating
profit was lower as a result of lower volumes in the Intra-America network. Volumes and revenue were lower in
the Intra-America network because of the effects of a weak U.S. economy and a shift from expedited to deferred
products. Partially offsetting this were the effects on revenue and earnings of increased air export volumes and
supply chain management activity in Asia-Pacific.

Americas
BAX Global’s 2003 operating loss in the Americas region was $15.8 million higher than 2002 on a 1% decrease
in revenues. A decrease in operating profit due to lower Intra-America volumes of higher-yielding overnight and
second-day products, more than offset an increase in operating profit due to higher volumes for deferred
products and volumes related to BAX Global’s new wholesale freight forwarding product. Although volumes, in
total, were lower in 2003 compared to 2002, volumes in the fourth quarter of 2003 were above the prior-year
quarter and the year-over-year improvement has continued in early 2004. Management believes that much of
the shift from expedited to deferred products is likely to continue; however, in an improving economy the
absolute weight of expedited freight is likely to increase.

U.S. air export revenues reflect the benefit of being able to pass through to customers a portion of the
surcharges charged by airlines for high fuel costs, security and other reasons. U.S. air export volumes were
slightly higher in 2003 over 2002, while revenue per pound, excluding surcharges, declined in 2003 as compared
to 2002. Growth in the U.S. supply chain management business increased revenues by $14.4 million in 2003 as
compared to 2002 due to the addition of new customers as well as increased activity with existing customers.
BAX Global’s revenues and operating results in 2003 were adversely affected by lower third-party aircraft charter
activity compared to the prior year period.

The Brink’s Company

2003 ANNUAL REPORT

The 2003 operating loss in the Americas includes higher expense from the Company’s primary U.S. pension
plan as well as higher health care costs in the 2003 periods. Heavy maintenance expense was $9.3 million
lower in 2003 compared to 2002 primarily due to a reduction in flight hours as a result of a decrease in third-
party aircraft charter activity. Adjustments made in the first half of 2003 in conjunction with the renegotiation of
certain return provisions of its aircraft lease agreements and the completion of a study of the lease agreements
also reduced heavy maintenance expense.

International
International operating profits decreased 6% in 2003 compared to 2002 on a 15% increase in revenues (7%
increase in revenues on a constant currency basis). A decrease in operating profits in the EMEA region was
partially offset by improved profits in Asia-Pacific. Reduced demand and competitive market pressures in the
EMEA region continue with the effects of the strengthening currencies and the weak European economy
resulting in lower export volumes and flat import volumes compared with 2002. The effects of the weak
European economy are expected to continue. Revenues and operating profit for 2003 benefited from an
increase in air export volumes within the Asia-Pacific region and from Asia-Pacific to the U.S. In addition, Asia-
Pacific’s results benefited from growth in supply chain management operations, including the effects of an
expansion of operations in China during 2003, as well as increased activity from existing customers.

BAX Global Corporate and Other
BAX Global’s corporate and other expense decreased $3.8 million in 2003 versus the prior-year period due to
foreign currency exchange transaction gains and lower administrative costs.

2002

Overview
The 5% increase in BAX Global’s worldwide operating revenues in 2002 as compared to 2001 was attributable
to the addition of new business and economic recovery in Asia-Pacific. Worldwide operating profit in 2002
improved $45.2 million, primarily reflecting the benefit of ongoing efforts in the Americas to better align
transportation costs and operating expenses with market demands and economic conditions, and the volume
improvement in Asia-Pacific.

Americas
Americas revenues decreased 2% in 2002 as compared to 2001 due to a lower volume of domestic and
outbound international expedited airfreight services associated with the continuing weak economies in the U.S.
and Europe. Americas 2002 revenues from charter activity were $15 million higher than 2001 primarily as a
result of more flights for the U.S. government.

Despite the reduction in revenues, the operating loss in the Americas was 67% lower in 2002 as compared to
2001. The improvement was primarily due to reductions in Americas transportation costs. Costs per pound
shipped in 2002 decreased as compared to 2001 as a result of fleet reductions undertaken during 2001 and an
increased use of ground transportation.

International
In 2002, International revenues increased 13% and operating profit increased 23% as compared to 2001. The
increases were primarily due to improved economic conditions and new business in several Asia-Pacific
countries, which resulted in increased air export volumes to the U.S., primarily associated with the high
technology industry. In addition, a port dispute on the West Coast of the U.S. resulted in a higher volume of air
export freight from Asia-Pacific during the fourth quarter of 2002. Margins on these shipments were lower due to
higher airline transportation costs, not all of which were able to be passed on to customers. In the EMEA region,
low export and import air-freight volumes and lower prices caused by the continuing weak European economy
resulted in a decrease in revenues and operating profit for 2002 as compared to 2001.

The Brink’s Company

2003 ANNUAL REPORT

BAX Global Corporate and Other
The decrease in BAX Global’s corporate and other expense in 2002 as compared to 2001 was primarily due to
$7.4 million of amortization of goodwill in 2001.

Corporate Expense – The Brink’s Company

(In millions)

2003

Corporate expense

27.8

2002

23.1

2001

21.5

2003

2002

Years Ended December 31,

% change

The increase in corporate expense in 2003 primarily reflected increases in benefit-related expenses as well as
additional costs related to the implementation of Section 404 of the Sarbanes-Oxley Act of 2002. The Sarbanes-
Oxley costs are expected to be higher in 2004 compared to 2003, but should decrease in 2005 from 2004 as the
initial compliance effort is completed in 2004.

Retained Liabilities and Assets of Former Natural Resource Operations

Overview
In 2002, the Company exited the coal business by selling or shutting down its remaining coal operations. In
2003, the Company sold most of its other natural resource businesses, including

•
•
•
•

its natural gas business,

a portion of its timber business,

an equity interest in a gold business, and

substantially all of its remaining coal properties.

The Company sold the remainder of its timber and gold businesses in the first quarter of 2004.

The Company has significant liabilities related to its former coal business. Expenses and payments related to
these liabilities are expected to decline over time.

Legacy Liabilities and Assets
The Company refers to various assets and liabilities related to the former coal operations as its “legacy” assets
and liabilities. Some of the Company’s legacy assets and liabilities are not fully recorded on the balance sheet
because certain losses have been deferred in accordance with GAAP. In addition under GAAP, some of these
liabilities are discounted to reflect a present value, while others have not been discounted. To facilitate an
understanding of the total estimated present value of these liabilities as of December 31, 2003, the following
table presents a Company-defined amount, “Legacy Value”, for the Company’s legacy assets and liabilities. The
Legacy Value excludes GAAP deferred loss adjustments and discounts to a present value those liabilities with
extended payment dates that are not recorded at present value under GAAP. PLEASE NOTE THAT THIS IS
NOT A GAAP PRESENTATION AND THIS TABLE SHOULD ONLY BE READ IN CONJUNCTION WITH THE
CONSOLIDATED FINANCIAL STATEMENTS. The Legacy Values are considered non-GAAP measures, and
the table below reconciles each Legacy Value to its GAAP counterpart. The estimated Legacy Value and GAAP
amounts are as of December 31, 2003. These estimated amounts will be adjusted annually to reflect actual
experience, annual actuarial revaluations and periodic revaluations of reclamation liabilities. The amounts are
based on a variety of estimates, including actuarial assumptions, as described below in the Application of Critical
Accounting Policies and in the notes to the consolidated financial statements. Actual amounts could differ
materially from the estimated amounts.

The Brink’s Company

2003 ANNUAL REPORT

December 31, 2003

Liabilities Not

Legacy

Add Back Present

Yet Recognized

Value (a)

Value Effect

Under GAAP

GAAP

Amount

(In millions)

Legacy liabilities:

Company-sponsored retiree medical, net (c):

Before Medicare subsidy

$ 571.9

Medicare subsidy

Health Benefit Act (d)

Black lung (e)

Workers’ compensation

Advance minimum royalties

Reclamation

Legacy liabilities (b)

Legacy assets:

VEBA (f)

Other assets (g)

Deferred tax assets (h)

(45.7)

526.2

106.1

63.0

30.3

13.4

7.9

$ 746.9

$ 105.2

18.2

286.7

91.4

32.0

(285.5)

45.7

(239.8)

(19.3)

(259.1)

(90.7)

286.4

197.5

43.7

30.3

13.4

7.9

579.2

105.2

18.2

228.0

(a) The Legacy Value table includes the Company’s significant long-term coal-related assets and liabilities. Other shorter-

term coal-related assets and liabilities have been excluded from the total amount of the Legacy Value table.

(b) Legacy liabilities above exclude the Company’s estimated withdrawal obligations of $52 million from coal-related multi-

employer pension plans. It is likely that a withdrawal will be deemed to have occurred within the next two to three years.
The timing and actual amount to be paid, if any, will be based on the funded status of the plans as of the beginning of the
plan year in which a withdrawal has been deemed to have occurred.

Accounting for Postretirement Benefits Other Than Pensions.” Generally, SFAS No. 106 requires a liability be recorded for
the present value of future obligations. Under the provisions of SFAS No. 106, actuarial gains and losses are deferred.
Actuarial gains and losses occur when actual events differ from assumptions (e.g. when the actual health care inflation
rate differs from the assumed inflation rate) or changes are made to assumptions used to estimate the liability, including
assumptions as to the discount rate used to compute the present value (6.25% at December 31, 2003), expected health
care inflation rates, expected life expectancy rates, asset returns and the effect of the Medicare subsidy. Actuarial gains
and losses are not immediately recognized in earnings because SFAS No. 106 requires employers to defer these gains
and losses and then amortize these gains and losses into earnings in future periods if the total unrecognized net gains and
losses exceed 10% of the accumulated postretirement benefit obligation. As a result, the Company’s balance sheet does
not reflect these liabilities at the full present value of the ultimate projected obligations at the end of the year. The Legacy
Value in the table reflects the Company’s liability had the Company’s total projected obligations been fully accrued at the
end of the year. The Company discloses the projected amount of its obligation before the required deferral of
unrecognized gains and losses as “accumulated plan benefit obligation” in note 4 to the consolidated financial statements.

(d) Health Benefit Act liabilities are accounted for in accordance with EITF No. 92-13, “Accounting for Estimated Payments in
Connection with the Coal Industry Retiree Health Benefit Act of 1992” and accordingly, the Company has accrued the
undiscounted estimate of its projected obligation. As discussed in note 4 to the consolidated financial statements, the
Company uses various assumptions to estimate its liability to The United Mine Workers of America Combined Fund (the
“Combined Fund”) for future annual premiums, including the number of assigned and unassigned beneficiaries in future
periods, medical inflation, and the amount of funding of the Combined Fund to be provided from the Abandoned Mine
Reclamation Fund in future periods. The estimated annual payments are expected to be paid out over the next seventy
or more years. To determine its Legacy Value, the Company’s actuaries discounted the estimated future cash flows to a
present value amount using a discount rate of 6.25%. The Company’s estimates of annual payments may change
materially due to changes in future assumptions. Statutory changes to the 1992 law under which benefits are paid also
could materially affect the Company’s estimate of its liability in the future. The estimation of the Legacy Value should not
be considered a precise estimate because of the many variables that have been used to determine the estimate, including
the discount rate and the amount of expected annual cash flows. There are many factors that may change and cause the
amount recorded in the balance sheet to not be representative of the amount the Company may actually pay.

The Brink’s Company

2003 ANNUAL REPORT

(e) Actuarial gains and losses resulting from changes in estimates of the Company’s black lung obligations are deferred and
amortized into earnings in future periods. As a result, the Company’s balance sheet does not report these liabilities as if
the Company’s projected obligation had been fully accrued at the end of the year. The Legacy Value in the table reflects
the Company’s projected obligations had it been fully accrued at the end of the year. Of the Company’s $63.0 million of
present value of self-insured black lung benefit obligations at December 31, 2003, approximately $43.7 million had been
recognized on the balance sheet, with the difference relating to deferred unrecognized actuarial losses (see note 4 to the
consolidated financial statements).

(f) The VEBA has been designated in the first quarter of 2004 to pay future benefits of the Company-sponsored medical

plans.

(g) Other assets are primarily related to a tax receivable from Virginia related to the former production of coal; the projected

balance represents the discounted value of receipts over the next six years. These credits will have minimal effect on
earnings over the time of collection. The Company expects to receive approximately $5 million per year for 2004 through
2006; $3 million in 2007 and $1 million each in 2008 and 2009.

(h) The Company has not yet taken deductions in its tax returns for most of the accrued legacy liabilities, and has recorded a
deferred tax asset for this future benefit since tax laws generally do not permit a deduction until payment is made to cover
the benefits or into the VEBA. The $90.7 million reconciling item represents the expected tax benefit in the Company-
sponsored retiree medical and black lung obligations which have been deferred in accordance with the provisions of SFAS
No. 106. The $32.0 million reconciling item represents the associated decrease to the deferred tax asset if the Health
Benefit Act liability were recorded on a discounted basis.

Under the Health Benefit Act, the Company and various subsidiaries are jointly and severally liable for
approximately $432 million, at Legacy Value, of postretirement medical (before any benefit from the Medicare
subsidy) and Health Benefit Act obligations in the above table.

Projected Payments and Expenses of Retained Coal Liabilities and Administrative Costs
The following tables include the actual cash payments and expense (continuing operations only) related to the
Company’s former coal liabilities for 2003 and those projected for the next five years.

The projected payments and expenses are estimated based on assumptions that are usually adjusted annually;
the actual amount of payments and expense in future periods may be materially different than amounts
presented. The amounts paid or expensed in the future will be dependent on many factors, including inflation in
health care and other costs, the ultimate impact of the recently enacted Medicare reform bill, discount rates, the
market value of pension plan assets, the level of contributions to and the performance of the VEBA, the number
of participants in various benefit programs, and the amount of administrative costs needed to manage the
retained liabilities.

The Brink’s Company

2003 ANNUAL REPORT

Cash Payments

(In millions)

Actual Payments

Projected Payments

Years Ending December 31,

2003

2004

2005

2006

2007

2008

Postretirement benefits other than pensions:

Company-sponsored medical plans (a)

Before Medicare subsidy

$ 30

$ 33

Estimated effect of Medicare subsidy

Subtotal

Health Benefit Act

Black lung

Withdrawal liability (b)

Workers’ compensation

Advance minimum royalties

Reclamation and inactive mine costs

Administration and other

(3)

Total (b)

$ 78

$ 64

(a) The Company has $105 million of assets in its VEBA that are to be used to fund future payments of the Company’s

retiree medical plans. The Company may elect at any time to use either these assets or its funds from operations to pay
for its retiree medical plans. Estimated payments in the table have not been reduced to reflect the use of assets held by
the VEBA since there are no plans to do so within the five years projected.

(b) This table excludes the Company’s estimated withdrawal obligations of $52 million from coal-related multi-employer

pension plans. The timing and the actual amount to be paid, if any, will be based on the funded status of the plans as of
the beginning of the plan year that a withdrawal is deemed to have occurred. It is likely that a withdrawal will be deemed
to have occurred within the next two to three years.

Expenses in Continuing Operations

(In millions)

Actual Expense

Projected Expenses

Years Ending December 31,

2003

2004

2005

2006

2007

2008

Postretirement benefits other than pensions:

Company-sponsored medical plans:

Expenses

Estimated effect of Medicare subsidy

Estimated investment income in VEBA (a)

Subtotal

Black lung

Pension

Administrative, legal and other coal expenses, net

Other income, net

Total

(1)

(3)

(6)

(9)

(6)

(10)

(6)

(11)

(12)

(6)

(13)

(a) Beginning in 2004, the Company will account for the VEBA as a plan asset of Company-sponsored medical plans in

accordance with SFAS No. 106.

The Brink’s Company

2003 ANNUAL REPORT

Following are comments covering the more significant and unusual legacy obligations and assets in the above
tables. For additional information on these obligations and assets, please see notes 4 and 5 to the consolidated
financial statements. Each of these obligations and assets are affected by estimates and judgments. More
information on this is available at “Application of Critical Accounting Policies” later in this Management’s
Discussion and Analysis.

Company-Sponsored Retiree Medical Benefits
The Company provides postretirement health care and life insurance benefits to eligible former coal miners and
their dependents. With the assistance of actuaries, the Company annually reevaluates the estimated future cash
flows, expenses and current values of the obligations.

The Legacy Value, which equals the accumulated postretirement benefit obligation, at December 31, 2003
increased to $526 million from the $518 million estimated at December 31, 2002. Most of this increase was due
to the reduction in the discount rate of 50 basis points to 6.25%. This was largely offset by the estimated impact
of the recently enacted Medicare reform legislation. Based on the expected use of the 28% subsidy on
pharmaceuticals provided by this legislation, the Company estimated that the net present value of its obligations
has been reduced by $46 million.

Projected payments are expected to increase each year for the next five years as a result of medical inflation
and as eligible participants attain retirement age. This will be partially offset by reductions in the number of
participants through mortality.

Net expense levels are expected to decline in 2004 from 2003 primarily due to the impact of the funding of the
VEBA and accounting for the VEBA as a plan asset under SFAS No. 106 beginning in 2004, and the positive
effect on pretax earnings, estimated at approximately $6 million per year, of the benefit from the Medicare
legislation.

Health Benefit Act Obligations
In October 1992, the Coal Industry Retiree Health Benefit Act of 1992 (the “Health Benefit Act”) was enacted as
part of the Energy Policy Act of 1992. The Health Benefit Act established rules for the payment of future health
care benefits for thousands of retired union mine workers and their dependents. The Health Benefit Act
established a trust fund, The United Mine Workers of America Combined Benefit Fund (the “Combined Fund”), to
which “signatory operators” and “related persons”, including The Brink’s Company and certain of its subsidiaries
(collectively, the “Brink’s Companies”), are jointly and severally liable to pay annual premiums for those
beneficiaries directly assigned to a signatory operator and its related persons, on the basis set forth in the Health
Benefit Act.

In addition, the Health Benefit Act provides that assigned companies, including the Brink’s Companies, are
required to fund, pro rata according to the total number of assigned beneficiaries, a portion of the health benefits
for unassigned beneficiaries if not funded from other designated sources. To date, almost all of the funding for
unassigned beneficiaries has been provided from transfers from the Abandoned Mine Reclamation Fund (the
“AML Fund”) or other government sources.

The Company’s liability for Health Benefit Act obligations is equal to the undiscounted estimated amount of
future annual premiums the Company expects to pay to the Combined Fund over approximately 70 years. The
Company’s estimated annual premium is generally equal to the total number of beneficiaries (including assigned
beneficiaries and an allocated percentage of the total unassigned beneficiaries) at October 1, the beginning of
the plan year, multiplied by the premium per beneficiary for that year. The Company expects to pay annual
premiums over the next 70 or more years, but it expects these annual premiums to gradually decline over time
as the number of beneficiaries decreases.

The Brink’s Company

2003 ANNUAL REPORT

The estimated liability at December 31, 2003 assumes that almost all of the costs for unassigned beneficiaries
for the plan year ending September 30, 2004 will continue to be paid with transfers of cash from the AML Fund
and other government sources. Transfers to the Combined Fund from the AML Fund beyond this date are not
sufficiently assured and the Company’s current estimate of its obligations assumes that no future transfers will
be made by the AML Fund. The Company’s estimate of its probable liability for premiums for unassigned
beneficiaries could materially decrease in future periods depending on the availability of future funding by the
AML Fund or other sources. Moreover, the Company’s estimate of its liability for unassigned beneficiaries could
change materially in the future if other responsible coal operators become insolvent. This liability could also
change materially if the percentage of unassigned beneficiaries that are allocated to the Company changes due
to relative mortality rates of the Company’s assigned beneficiaries compared to the total assigned beneficiaries.

The Company’s actuaries have prepared an estimate of the net present value of the total expected future
payments. The Company believes that this information is valuable to investors and creditors to understand the
significance of a series of payments to be made over an extended period of time (over 70 or more years).

The Legacy Value of the Company’s Health Benefit Act obligations increased from approximately $90 million at
December 31, 2002 to approximately $106 million at December 31, 2003. The primary reasons for the increase
are the reduction in the discount rate used by 50 basis points and an increase in the assumed share of future
payments to be made for unassigned beneficiaries. The Company’s assumed share of future payments for
unassigned beneficiaries increased due to the release in bankruptcy during 2003 of two significant assigned
operators from their liabilities and an increase in the Company’s expectations for its historical share of the
unassigned pool based on court rulings and regulatory decisions in 2003.

At December 31, 2003 the Company’s obligations associated with unassigned beneficiaries are valued at $66
million on an undiscounted (GAAP) basis and $35 million on a net present value basis. These values are
included within the GAAP amount total of $198 million and the Legacy Value total of $106 million, respectively.

Projected payments related to the Health Benefit Act are projected to rise in 2004 and 2005 to reflect the current
assumption that the previous sources of funding for the unassigned pool will not continue. If future funding of all
of the unassigned benefits becomes available through the AML Fund or other sources, projections for 2005 and
later years may be reduced by up to $4 million per year.

No expense is reflected in continuing operations for Health Benefit Act obligations. Any changes to expected
future obligations determined during annual reevaluations are recorded as expenses or benefits within
discontinued operations.

Black Lung Obligations
The Company makes payments to former miners who have been determined to have pneumoconiosis (black
lung). Such payments primarily cover disability payments and condition-related medical expenses. These
payments stretch out over many years and have been discounted to a net present value. The difference
between the amounts on the balance sheet and the full net present value of expected payments is being
amortized into expense over the average remaining life expectancy of all participants (approximately 10 years).

The Legacy Value, which equals the accumulated projected benefit obligation, of the black lung obligations
increased to $63 million in 2003 from $60 million in 2002 largely due to the effect of reducing the discount rate by
50 basis points to 6.25% as of December 31, 2003.

Future cash payments are expected to gradually decline over time as the number of participants declines
through mortality. Future expense levels are also expected to decline as the remaining value of obligations
declines over time.

The Brink’s Company

2003 ANNUAL REPORT

Withdrawal Liabilities
The Company participates in the United Mine Workers of America (“UMWA”) 1950 and 1974 pension plans, but
expects to ultimately withdraw from these plans. Upon withdrawal from these coal-related plans, the Company
must pay the plans a portion of the underfunded status of the plans, as determined by the plan agreements and
by law. In 2001, the Company recorded estimated withdrawal liabilities for the multi-employer pension plans of
$8.2 million associated with its planned exit from the coal business. In 2002, the Company increased the
estimated liabilities by $26.8 million to $35.0 million and in 2003, the Company increased the estimated liabilities
by $17.0 million to $52.0 million.

The estimated liabilities increased in each of the last two years because the unfunded liability of the multi-
employer plans increased as of the end of the last two plan years. The actual withdrawal liability, if any, is
subject to several factors, including the funded status of the plans as of annual measurement dates (June 30
each year) and the date that the Company is determined to have completely withdrawn from the plans.
Accordingly, the ultimate obligation could change materially.

The Company expects that within the next three years, it is likely that its obligations will become fixed. The
Company’s ultimate liability will be based on the plans’ funded status at the time of deemed withdrawal and the
ultimate liability could be higher or lower than the value recorded at December 31, 2003. The Company may
have the option to pay the withdrawal liability in a lump sum or over two years with interest charges.

VEBA
The Company has established a VEBA under Internal Revenue Code Section 501(c)(9). In general, a
contribution made to the VEBA becomes deductible for federal income tax purposes in the year in which it is
made. Investment earnings within the VEBA are not subject to federal income tax. Distributions from the VEBA
to pay designated benefits or to reimburse the Company for designated benefit payments are nontaxable. The
Company can determine the timing and size of any payment from the VEBA to cover expenses of eligible
participants.

In the first quarter of 2004, the Company restricted the ability of the VEBA so that it will be used to pay only
benefits related to the Company’s postretirement medical plan. Accordingly, under SFAS No. 106, earnings in
the VEBA will be deemed to be offset against the related expense beginning in 2004.

The Company intends to increase the size of the assets within the VEBA over time until the level of assets
become a significant percentage of the value of the postretirement medical plan liability. The increase is
expected to come from investment returns and contributions.

The Company has already allocated the VEBA’s assets among active investment managers of equities and fixed
income securities. Approximately 70% of the trust assets are invested in equities, with 30% invested in fixed
income securities. Because the VEBA is being invested in a similar fashion to the Company’s primary U.S.
pension plan, the Company has adopted the same expected long-term rate of return of 8.75% per annum for
2004.

The Company expects to continue to make contributions to the VEBA after taking into consideration the
Company’s cash, debt and tax position and growth needs. Contributions to the VEBA along with investment
earnings amounted to about $18 million through December 31, 2002. The Company contributed $82 million to
the VEBA in 2003 and the VEBA generated $5 million in investment returns, mostly in the fourth quarter of 2003,
leaving a balance of $105 million at December 31, 2003. The Company has not finalized its plans for
contributions, if any, in 2004 and beyond.

The Brink’s Company

2003 ANNUAL REPORT

Discontinued Operations

(In millions)

Gain (loss) on sale of

Coal

Natural Gas

Timber

Results from operations

Coal

Natural Gas

Timber

Gold

Adjustments to contingent liabilities of former operations

Health Benefit Act liabilities

Withdrawal liabilities

Reclamation liabilities

Recovery of environmental costs

Other

Pretax gain (loss) on disposals

Income tax benefit (expense)

Income (loss) from discontinued operations

Years Ended December 31,

2003

2002

2001

56.2

4.8

11.2

(0.2)

(4.1)

(31.3)

(17.0)

(3.2)

5.3

(2.5)

19.2

(8.0)

11.2

13.2

(28.1)

9.0

(1.0)

(7.6)

(24.0)

(26.8)

(65.3)

22.0

(43.3)

(15.9)

(22.2)

11.3

(2.7)

1.1

(8.0)

(8.2)

(44.6)

22.9

(21.7)

Gain (loss) on Sale
During 2000, an $85.9 million estimated loss on the sale of the coal business was recorded, and during 2001 the
estimated loss was increased by $15.9 million. A $13.2 million reversal of the previously estimated loss on sale
was recorded during 2002 to reflect the amount of actual proceeds and values of assets and liabilities at the
dates of sale. The assets disposed of in 2002 primarily consisted of operations including coal reserves,
property, plant and equipment, the Company’s economic interest in Dominion Terminal Associates and
inventory. Certain liabilities, primarily reclamation costs related to properties disposed of, were assumed by the
purchasers.

In August 2003, the Company sold its natural gas business and received $81.2 million in cash and recognized a
$56.2 million gain in discontinued operations.

In December 2003, the Company sold a portion of its timber business for $5.4 million in cash and recognized a
$4.8 million pretax gain in discontinued operations. The Company received an additional $31.8 million from
escrow in January 2004 for most of the remaining portion of its timber business. An additional $1.9 million of
cash is being held in escrow until June 2004 pending the completion of certain remaining title work. The
Company paid $6.2 million in January 2004 to settle operating leases for equipment purchased by the buyer.
The Company expects to recognize approximately $19 million of additional pretax gains in the first quarter of
2004 and up to a $1.9 million pretax gain in the second quarter of 2004 in discontinued operations.

In February 2004, the Company sold its gold operations for approximately $1 million in cash and the assumption
of liabilities.

The Brink’s Company

2003 ANNUAL REPORT

Results from Operations
The operating results of the coal, natural gas, timber and gold operations have been reclassified to discontinued
operations for all periods presented.

The results of operations of the former natural gas operations in the eight months prior to the 2003 sale
improved over the full year of 2002 as a result of higher natural gas prices. The Company recognized
impairment losses related to its gold business of $1.7 million in 2003 and $5.7 million in 2002.

The Company accounted for the disposition of its coal operations under Accounting Principles Bulletin No. 30,
(“APB No. 30”) “Reporting the Results of Operations – Reporting the Effects of Disposal of a Segment of a
Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions.” Under APB No. 30,
estimated losses of the coal operation expected to be incurred through the end of the disposal period were
accrued at the measurement date of December 31, 2000. Accordingly, operating losses (including significant
ongoing expenses related to Company-sponsored pension and postretirement benefit obligations and black lung
obligations) were recognized within discontinued operations in different periods than they would have been
recorded if coal were a continuing operation. Total recorded charges for Company-sponsored pension and
postretirement benefit obligations and black lung obligations were approximately $2 million in 2002 and $53
million in 2001. The year 2001 (which included expenses expected to be incurred in 2002) included only one
year of expenses. The amount in 2002 represents the difference between the estimated amount of expenses
relating to 2002 that were accrued in 2001 and the amount actually incurred in 2002. Beginning in January of
2003 expenses related to Company-sponsored pension, postretirement and black lung obligations are recorded
in continuing operations.

The Company accrued its original estimate of losses during the disposal period in 2000. The Company
increased the estimated operating losses in 2001 by $22.2 million. The $22.2 million increase included the effect
of extending the anticipated period of disposal through the end of 2002, including the accrual of $53 million of
additional postretirement, pension, and black lung benefit expenses. Also included in the $22.2 million increase
was a refund of $23.4 million (including interest) of Federal Black Lung Excise Tax (“FBLET”) received during
2001 and an accrual of $9.5 million for litigation settlements that were paid during early 2002.

The Company recorded an additional $28.1 million of operating losses during 2002, primarily reflecting worse-
than-expected price, volume and costs per ton of coal as a result of adverse coal market conditions during the
year.

Adjustments to Contingent Liabilities of Former Operations
Health Benefit Act Liabilities. The Company has obligations under the Coal Industry Retiree Health Benefit Act
of 1992 (the “Health Benefit Act”), as described in note 4 to the consolidated financial statements. The Company
recorded additional charges of $31.3 million in 2003, $24.0 million in 2002 and $8.0 million in 2001 to reflect
changes in the estimates of the undiscounted liability. This liability will be adjusted in future periods as
assumptions change.

The $31.3 million charge in 2003 primarily related to the assumed increase in the number of unassigned
beneficiaries allocated to the Company. The increased allocation was due to two factors. First, the Company
increased its allocation percentage because of a change in the way the Company interprets the statute
governing the allocation, based on findings of recent court cases. Second, other coal operations became
insolvent during the period, which transferred their assigned beneficiaries to the unassigned pool and reduced
the denominator (the total assigned pool) in the computation of the allocation percentage, increasing the
Company’s allocation assumption.

The Brink’s Company

2003 ANNUAL REPORT

The $24.0 million charge in 2002 primarily resulted from the Company’s being able to obtain and use Company-
specific information regarding the age of the beneficiaries covered by the Health Benefit Act rather than using
averages relating to the entire population of beneficiaries covered, slightly higher per-beneficiary health care
premiums, and slightly lower mortality than was estimated at the end of 2001 for the plan year ended September
30, 2002.

The $8.0 million charge in 2001 was primarily the result of a higher number of assigned beneficiaries as of
October 1, 2001 than was estimated at the end of 2000. The Combined Fund premium per beneficiary for the
plan year beginning October 1, 2001 was essentially equal to that estimated at the end of 2000.

Withdrawal Liabilities. The Company participates in the UMWA 1950 and 1974 pension plans, but expects to
ultimately withdraw from these plans. Upon withdrawal from the plans, the Company must pay the plans a
portion of any underfunded liability of the plans, as determined by the plan agreements. In 2001, the Company
recorded estimated withdrawal liabilities for coal-related multi-employer pension plans of $8.2 million associated
with its planned exit from the coal business. In 2002, the Company increased the estimated liabilities by $26.8
million to $35.0 million and in 2003, the Company increased the estimated liabilities by $17.0 million to $52.0
million.

The Company’s estimate of the obligation in each year is based on the funded status of the multi-employer plans
for the most recent measurement date. The increases in the Company’s estimated liability in 2002 and 2003 are
due to increases in the UMWA plans’ unfunded liabilities. The actual withdrawal liability, if any, is subject to
several factors, including funding and benefit levels of the plans as of annual measurement dates (June 30 each
year) and the date that the Company is determined to have completely withdrawn from the plans. Accordingly,
the ultimate obligation could change materially.

Other. In the fourth quarter of 2003, the Company and a third party reached an agreement that establishes the
allocation of past costs related to the recovery of environmental costs, and as a result, recognized a $5.3 million
pretax gain. The matter relates to the remediation of the Company’s formerly owned petroleum terminal facility
in Jersey City, New Jersey.

Sale of Other Natural Resources Assets
In October 2003, the Company sold its 23.3% equity interest in MPI Mines Ltd., an Australian minerals
exploration and development company with interests in gold and nickel, for $18.8 million in cash and recognized
a $10.4 million pretax gain in continuing operations.

In November 2003, the Company sold substantially all of its remaining coal-related assets for $14 million in cash
plus the assumption of reclamation and other liabilities for total proceeds of $28.8 million. A gain is expected to
be recognized in 2004 as liabilities related to reclamation are formally transferred to the buyer.

The Brink’s Company

Other Operating Income, Net

Other operating income, net, is a component of each operating segment’s previously discussed operating profit.

Years Ended December 31,

% change

2003 ANNUAL REPORT

(In millions)

2003

2002

2001

Gains on sale of operating assets, net

Foreign currency transaction gains, net

Share in earnings of equity affiliates

Royalty income

Other

Total

6.4

3.2

0.3

1.7

4.0

15.6

2.0

1.2

1.3

0.7

5.2

4.0

3.4

1.3

3.9

12.6

2003

(75)

200+

200

2002

(50)

(65)

(82)

(59)

The increase in other operating income in 2003 is primarily attributable to $6.4 million in net gains on the sale of
operating assets, including a $5.5 million gain on the sale of operating assets of Brink’s and $2.2 million in gains
from the sale of residual assets of the former coal operations partially offset by losses on sales of other property
and equipment.

Nonoperating Income and Expense

Interest Income

(In millions)

Interest income

Years Ended December 31,

% change

2003

2002

2001

6.2

3.1

4.6

2003

100

2002

(33)

Interest income increased in 2003 as compared to 2002 primarily due to the interest earned on the VEBA’s
assets, which had a higher average balance in 2003 as a result of contributions, as well as interest income on
receivables related to the former coal operations. These types of interest income amounts were classified as
discontinued operations in 2002 and 2001.

Interest Expense

(In millions)

2003

2002

2001

Interest expense

25.4

23.0

32.3

2003

2002

(29)

Years Ended December 31,

% change

Interest expense increased in 2003 as compared to 2002 primarily due to the inclusion of interest expense
related to Dominion Terminal Associates (“DTA”) in the 2003 period. In conjunction with the disposal of its coal
operations, the Company transferred its interest in the operations of DTA, a coal terminal in Newport News,
Virginia, but retained contingent obligations of related debt. Since the Company no longer has an interest in
DTA, its related $43.2 million guarantee of the underlying debt was reclassified to long-term debt from
noncurrent liabilities at December 31, 2002. In prior periods, the cost associated with the bonds was included in
discontinued operations. In addition, 2003 interest expense was higher due to the accretion of interest related to
former coal operations’ retained leases and advance minimum royalty agreements, partially offset by a decrease
in U.S. borrowings and lower interest rates.

The decrease in 2002 from 2001 was primarily due to lower average borrowings and interest rates.

The Brink’s Company

2003 ANNUAL REPORT

Stabilization Act Compensation

(In millions)

2003

2002

2001

Stabilization Act compensation

5.9

2003

2002

Years Ended December 31,

% change

Stabilization Act compensation of $5.9 million in 2002 represents amounts received by the Company from the
U.S. Government pursuant to the Air Transportation Safety and System Stabilization Act.

Other Income (expense), Net

(In millions)

2003

2002

2001

2003

2002

Years Ended December 31,

% change

Gain on monetization of coal royalty agreement $

2.6

Gain (loss) on sale of marketable securities

(0.2)

Discounts and other fees of accounts

receivable securitization program

Other, net

Total

(1.7)

1.6

2.3

0.8

(1.6)

(4.4)

(5.2)

4.0

(4.0)

0.2

(60)

Discounts and other fees associated with the sale of a revolving interest in certain of BAX Global’s accounts
receivable increased slightly in 2003 and decreased in 2002 from the prior year. The decrease in 2002 is a
result of lower borrowing costs of the conduit that purchases BAX Global’s accounts receivable. The discount on
the sale of the receivables is based on the conduit’s borrowing costs.

Minority Interest

(In millions)

Minority Interest

Years Ended December 31,

% change

2003

2002

2001

9.0

3.3

6.9

2003

173

2002

(52)

Changes in minority interest in the last three years are primarily due to variations in the earnings of the
Company’s partially owned Venezuelan subsidiary of Brink’s. The Venezuelan subsidiary was profitable in 2001,
incurred losses in 2002, and returned to strong profitability in 2003.

The Brink’s Company

2003 ANNUAL REPORT

Income Taxes

Years Ended December 31,

2003

2002

2001

2003

2002

2001

Income tax expense (benefit)

Effective tax rate

(in millions)

(in percentages)

Continuing operations

Discontinued operations

55.7

8.0

40.4

(22.0)

25.1

(22.9)

75.4%

41.7%

36.8%

33.7%

39.6%

51.3%

Continuing Operations
The Company’s income tax provision in 2003 includes $22.0 million of expense related to adjustments to
valuation allowances for certain state and foreign deferred tax assets, net of the federal benefit of recording
valuation allowances on state deferred tax assets. The valuation allowances were required due to the
Company’s assessment that these assets did not meet the more-likely-than-not recognition criteria of SFAS No.
109.

The Company’s effective tax rate, excluding the valuation allowances, was higher in 2003 compared to 2002 as
a result of adjustments made to the Company’s deferred tax assets and liabilities based on an analysis
completed in 2003 and other adjustments related to the reconciliation of its 2002 tax provision to its tax returns.
In 2003 and 2002, the Company also reversed contingency accruals due to favorable settlements of issues
relating to the Company’s U.S. federal tax returns.

The 2002 effective tax rate was lower than 2001, reflecting the reversal of certain accruals for U.S. tax
contingencies in 2002 based on settlements, and the tax effects of the required change in the method of
accounting for goodwill. In 2001, the provision for income taxes from continuing operations was greater than the
statutory federal income tax rate of 35% primarily due to the effects of goodwill amortization, partially offset by
lower taxes on foreign income.

As of December 31, 2003, the Company has not recorded U.S. federal deferred income taxes on $224.3 million
of undistributed earnings of its foreign subsidiaries and equity affiliates. It is expected that these earnings will
either be permanently reinvested in operations outside the U.S. or, if repatriated, will be substantially offset by
tax credits. If the earnings were remitted to the U.S. and no credits were available, additional U.S. tax expense
of $78.5 million would ultimately be recognized.

Based on the Company’s historical and future expected taxable earnings, management believes it is more likely
than not that the Company will realize the benefit of the deferred tax assets, net of valuation allowances.

Discontinued Operations
Discontinued operations includes the income (loss) before taxes and the related tax provision or benefit
associated with the Company’s former coal, natural gas, timber and gold businesses. The effective tax rate in
2003 was higher than 2002 due to additional accruals made in 2003 for tax contingencies related to the natural
resource business. In addition, tax benefits from percentage depletion of coal production were reflected in the
effective tax rate of discontinued operations in 2002 and 2001. The amount of percentage depletion was higher
in 2001 compared to 2002, which resulted in a higher effective tax benefit rate on 2001’s losses compared to
2002.

The Brink’s Company

2003 ANNUAL REPORT

Foreign Operations

A portion of the Company’s financial results is derived from activities in over 100 countries, each with a local
currency other than the U.S. dollar. Because the financial results of the Company are reported in U.S. dollars,
they are affected by changes in the value of various foreign currencies in relation to the U.S. dollar. Changes in
exchange rates may also affect transactions which are denominated in currencies other than the functional
currency. The diversity of foreign operations helps to mitigate a portion of the impact that foreign currency
fluctuations in any one country may have on the translated results.

The Company, from time to time, uses foreign currency forward contracts to hedge transactional risks associated
with foreign currencies. (See “Market Risk Exposures” below.)

Brink’s Venezuelan subsidiary was considered to be operating in a highly inflationary country in 2001 and 2002.
However, at January 1, 2003, Venezuela was no longer treated as highly inflationary. The Company estimates
that had Venezuela not been treated as highly inflationary effective January 1, 2002, revenues in 2002 would
have decreased by $1.1 million, operating profit would have increased by $2.4 million and pretax income would
have increased by $1.9 million. It is possible that Venezuela may be considered highly inflationary again at
some time in the future.

The Company is exposed to certain risks when it operates in highly inflationary economies, including the risk that

•
•

•

the rate of price increases for services will not keep pace with cost inflation;

adverse economic conditions in the highly inflationary country may discourage business growth which
could affect the demand for the Company’s services; and

the devaluation of the currency may exceed the rate of inflation and reported U.S dollar revenues and
profits may decline.

The Company is also subject to other risks customarily associated with doing business in foreign countries,
including labor and economic conditions, political instability, controls on repatriation of earnings and capital,
nationalization, expropriation and other forms of restrictive action by local governments. The future effects, if
any, of these risks on the Company cannot be predicted.

The Brink’s Company

2003 ANNUAL REPORT

LIQUIDITY AND CAPITAL RESOURCES

Overview

Over the last three years, the Company has used the cash it has generated from operations and the divestiture
of natural resources to strengthen its balance sheet by reducing debt and making contributions to the VEBA and
its primary U.S. pension plan.

Since the beginning of 2001, the Company has reduced debt by over $120 million, despite the effects of foreign
exchange changes on the reported value of non-U.S. dollar denominated debt and the inclusion of $43.2 million
of DTA obligations as debt. Prior to the end of 2002, DTA obligations were classified in other long-term liabilities
of the Company. In addition to debt reduction, over the last two years, the Company has contributed $82 million
to the VEBA and $55 million to the U.S. pension plan.

Proceeds of natural resource asset sales have exceeded $185 million in 2002 and 2003. In addition to this
benefit, with the sale of the coal business, the volatility in cash flows caused by the fluctuations in coal markets
has been removed. The Company believes this should make future cash flows more stable as they will be more
aligned with the performance of its three Business and Security Services businesses.

Summary of Cash Flow Information

(In millions)

Cash flows from operating activities

Continuing operations:

Years Ended December 31,

$ change

2003

2002

2001

2003

2002

Before changes in operating assets and liabilities
Changes in assets and liabilities, including

264.8

276.6

266.8

$ (11.8)

9.8

working capital

Discontinued operations:

Natural gas, timber and gold
Coal

Operating activities

Cash flows from investing activities

Continuing operations:

Proceeds from:

16.8

21.1

34.2

(4.3)

(13.1)

19.2
-

10.2
(66.6)

12.2
6.9

300.8

241.3

320.1

9.0
66.6

59.5

(2.0)
(73.5)

(78.8)

Disposal of former natural resource interests
Notes receivable and settlement of royalty agreement

Subtotal of natural resource cash proceeds

Capital and aircraft heavy maintenance expenditures
Contributions to VEBA
Other

119.4
26.0

145.4
(226.6)
(82.0)
9.8

42.3
-

42.3
(224.4)
-
4.3

-
-

-
(201.3)
-
(5.5)

Discontinued operations:

Natural gas, timber and gold
Coal

Investing activities

(8.8)
-

(10.9)
(19.7)

(7.2)
(11.1)

(162.2)

(208.4)

(225.1)

77.1
26.0

103.1
(2.2)
(82.0)
5.5

2.1
19.7

46.2

42.3
-

42.3
(23.1)
-
9.8

(3.7)
(8.6)

16.7

Cash flows before financing activities

138.6

32.9

95.0

$ 105.7

(62.1)

The Brink’s Company

2003 ANNUAL REPORT

Operating Activities

2003
Cash provided by operating activities was $59.5 million higher in 2003 compared to 2002 primarily due to
outflows in 2002 related to former coal operations while they were still operating. Cash provided by operating
activities was also higher due to an increase in the amount of cash provided by operating activities at Brink’s
and BHS, partially offset by lower amounts provided by BAX Global. In addition, the Company contributed $15
million more to its pension plan in 2002 than it did in 2003.

Coal-related cash outflows were classified as discontinued operations in the 2002 statements of cash flows,
including approximately $60.6 million (before current tax benefit) related to obligations the Company ultimately
retained. In 2003, cash outflows of $59.6 million for these retained obligations are included in continuing
operations. In addition to the payments related to retained obligations, the Company’s former coal operations
used cash in 2002 largely due to the poor performance of its operations in the face of difficult industry
conditions.

2002
Cash provided by operating activities was $78.8 million lower in 2002 than 2001 primarily due to an increase of
$75.5 million in cash used by discontinued operations. In addition, $31.1 million higher income from continuing
operations was more than offset by a $35.1 million contribution to the Company’s primary U.S. pension plan and
the lower level of cash provided by working capital changes. The increase in cash used by the Company’s
discontinued coal operations in 2002 was primarily related to higher operating losses resulting from weak coal
market conditions, lower FBLET refunds and the payment of litigation settlements.

Cash provided by working capital in 2001 reflected lower accounts receivable levels at BAX Global associated
with lower 2001 revenue.

Investing Activities

Proceeds from Disposition of Assets and Investments
Investing activities in 2003 included $119.4 million of cash proceeds from the 2003 sales of the natural resource
businesses and equity interests and the realization in 2003 of $26.0 million of cash related to the monetization
of noncash proceeds from the prior-year sale of the Company’s former Virginia coal operations. Proceeds from
dispositions of assets and investments in 2002 included $42.3 million of cash associated with the disposal of a
portion of the Company’s former coal operations.

The Company expects to collect up to a total of $33.7 million of cash in 2004 (including $31.8 million collected in
January 2004) related to selling the remainder of its timber business.

The Brink’s Company

2003 ANNUAL REPORT

Capital and Aircraft Heavy Maintenance Expenditures

(In millions)

2003

2002

2001

2003

2002

Years Ended December 31,

$ change

Capital Expenditures

Brink’s

BHS

BAX Global

Corporate and other

Capital expenditures

Aircraft heavy maintenance

80.9

98.0

23.6

0.2

79.3

86.9

27.1

0.1

71.3

81.3

33.1

0.1

(1.6)

(11.1)

3.5

(0.1)

202.7

193.4

185.8

(9.3)

(8.0)

(5.6)

6.0

(7.6)

expenditures

23.9

31.0

15.5

7.1

(15.5)

Higher capital expenditures at BHS in both 2003 and 2002 as compared to the prior-year periods were primarily
due to an increase in subscriber installations. More was spent at Brink’s in 2002 over 2001 for armored
vehicles, facilities and information technology. BAX Global reduced capital spending in the area of information
technology in each of the last two years.

Capital expenditures in 2004 are currently expected to range from $210 million to $230 million, depending on
operating results throughout the year. Expected capital expenditures for 2004 reflect an increase in customer
installations at BHS and information technology spending at Brink’s and BAX Global.

Operating performance and cash flows at BAX Global have been reduced over the last few years by the effects
of the soft U.S. economy. Because of this, BAX Global has delayed capital spending on a few information
technology projects for which it has acquired software and incurred some development costs. These costs,
which have been capitalized, amount to approximately $8 million. BAX Global is in the process of restarting
these projects and expects to complete them. If these projects were to be abandoned at a later date, any
capitalized amounts would be expensed immediately.

Aircraft heavy maintenance expenditures vary as a result of the amount of flight time and the timing of regularly
scheduled maintenance for airplanes. The Company expects to spend between $25 million and $35 million on
aircraft heavy maintenance in 2004.

VEBA
The Company made contributions totalling $82 million to the Company’s VEBA in 2003. All income from VEBA
investments has been retained in the VEBA.

Other Investing Activities
Investing activities in 2003 reflected approximately $13 million of higher proceeds from the sale of operating
assets, primarily at Brink’s, offset by approximately $8 million of cash used for acquisitions, also primarily at
Brink’s.

The Brink’s Company

2003 ANNUAL REPORT

Business Segment Cash Flows

The Company’s cash flows before financing activities for each of the operating segments are presented below.

(In millions)

2003

2002

2001

2003

2002

Years Ended December 31,

$ change

Cash flows before financing activities

Continuing operations:

Business and Security Services:

Brink’s

BHS

BAX Global

Subtotal of Business and Security Services

63.6

28.8

4.0

96.4

Corporate and former operations:

Proceeds from sale of natural resource interests 145.4

Contributions to the VEBA

Contributions to U.S. pension plan

Other, including payments for coal-related

obligations in 2003

Subtotal of continuing operations

Discontinued operations:

Natural gas, timber and gold

Coal

(82.0)

(20.0)

(11.6)

128.2

10.4

Cash flows before financing activities

$ 138.6

57.6

26.3

13.4

97.3

42.3

(35.1)

15.4

119.9

(0.7)

(86.3)

32.9

40.7

25.8

32.1

98.6

(4.4)

94.2

5.0

(4.2)

95.0

6.0

2.5

(9.4)

(0.9)

103.1

(82.0)

15.1

(27.0)

8.3

11.1

86.3

$ 105.7

16.9

0.5

(18.7)

(1.3)

42.3

(35.1)

19.8

25.7

(5.7)

(82.1)

(62.1)

Overview
Cash flows before financing activities from Business and Security Services were just under $100 million per
year in each of the last three years. Sales of natural resource interests also provided significant cash during
2003 and 2002. The Company made voluntary contributions to its VEBA in 2003 and to its U.S. pension plan in
the last two years. Significant cash payments were also made in the last three years for retained liabilities
associated with the former coal operations. 2002 also had significant cash outflows associated with the final
year of operation of the coal business amid poor market conditions.

Brink’s
Cash flows before financing activities at Brink’s increased in 2003 due to higher operating profit, offset by a
year-over-year increase in the amount of cash used for working capital needs and costs to relocate its
headquarters. In addition, $10 million in higher proceeds from the sale of operating assets were partially offset
by $7 million in cash outflows primarily related to a 2003 acquisition in Belgium.

Cash flows before financing activities at Brink’s in 2002 were above 2001 primarily due to an increase in cash
generated by working capital during 2002 and an improvement in operating performance.

BHS
The slight year-over-year increase in cash flows before financing activities at BHS in both 2003 and 2002 is
primarily due to higher operating results partially offset by an increase in capital expenditures reflecting growth
in installations of home security systems.

The Brink’s Company

2003 ANNUAL REPORT

BAX Global
Cash flows before financing activities at BAX Global in 2003 decreased $9.4 million from 2002 reflecting lower
operating results in 2003. Partially offsetting 2003’s lower operating results was a reduction in the amount of
cash used to cover working capital needs and lower capital and aircraft heavy maintenance expenditures.

The decrease in cash flows before financing activities at BAX Global in 2002 as compared to 2001 is primarily
due to $15.5 million of higher aircraft heavy maintenance expenditures and a decrease in cash provided from
changes in working capital levels, partially offset by improved operating results and lower capital expenditures.
Cash flows before financing for BAX Global in 2001 included $3.9 million of proceeds from the sale of
marketable securities.

Corporate and Former Operations
As mentioned above, the Company sold substantially all of its natural resource interests in 2003 and 2002, and
contributed cash to its VEBA and U.S. pension plan. The increase in other cash outflows for 2003 compared to
2002 reflects cash spent in 2003 associated with retained liabilities of the former coal operations (these types of
payments were included in discontinued operations in 2002 and 2001).

Discontinued Operations
Higher natural gas prices improved the natural gas business’ cash flows in 2003 compared to 2002.
Discontinued operations’ cash flow before financing activities for 2002 and 2001 reflected cash spent associated
with retained liabilities and operating losses resulting from weak coal market conditions; spending associated
with retained liabilities was included in continuing operations in 2003.

Discontinued operations’ cash flow before financing was lower in 2002 than 2001 primarily due to a larger
operating loss resulting from weak coal market conditions, necessary spending on the development of a deep
mine, lower FBLET refunds and payments of litigation settlements. Discontinued operations’ cash flows before
financing in 2001 included $23.4 million of FBLET refunds.

Financing Activities

Summary of Financing Activities

Years Ended December 31,

(In millions)

Short-term debt

U.S. Revolving Facility

Senior Notes

Other

Net borrowings (repayments) of debt

Repurchase of stock

Dividends

Other, net

2003

(15.1)

(98.1)

(5.6)

(118.8)

(5.3)

1.1

Financing Activities

(123.0)

2002

9.1

(7.2)

20.0

(22.2)

(0.3)

(11.1)

(5.7)

0.4

(16.7)

2001

(23.0)

(108.6)

75.0

(44.5)

(101.1)

(5.8)

5.2

(101.7)

The Company’s operating liquidity needs are typically financed by short-term debt, the Company’s accounts
receivable securitization facility, and the Company’s U.S. Revolving Facility, described below. The Company
also borrowed $20 million during 2002 and $75 million during 2001 under issuances of Senior Notes to increase
the duration of its debt and to take advantage of decreasing longer-term interest rates.

Under a share repurchase program authorized by the Board, the Company redeemed all its outstanding shares
of Convertible Preferred Stock for $10.8 million in 2002. The Company purchased $0.3 million of its common
stock in 2002.

The Brink’s Company

2003 ANNUAL REPORT

The Company paid quarterly dividends on its common stock at an annual rate of $0.10 per share in each of the
last three years. Dividends paid on common stock totaled $5.3 million in 2003, $5.2 million in 2002 and $5.1
million in 2001. Dividends paid on the Convertible Preferred Stock amounted to $0.5 million in 2002 and $0.7
million in 2001.

Future dividends are dependent on the earnings, financial condition, cash flow and business requirements of the
Company, as determined by the Board. In February 2004, the Board declared a quarterly cash dividend of
$0.025 per share of common stock, payable on March 1, 2004 to shareholders of record on February 17, 2004.

Capitalization

The Company has a combination of debt, off-balance sheet instruments and equity that capitalizes its
operations. As of December 31, 2003, debt as a percentage of capitalization (total debt and shareholders’
equity) was 36% compared to 49% at December 31, 2002. The decrease was due to $114 million higher equity
and $85 million lower debt. Equity increased in 2003 primarily as a result of favorable currency translation
adjustments ($48 million), net income ($29 million) and a decrease in the minimum pension liability adjustments
($15 million).

Summary of Debt, Equity and Other Liquidity Information

Amount available under
revolving credit facilities

Outstanding Balance

December 31,

2003

2002

$ change (b)

(In millions)

Debt:

Short-term debt:

Multi-Currency revolving facilities

and uncommitted facilities

52.6

$ 35.8

41.8

(6.0)

Long-term debt:

U.S. Revolving Facility

239.9

Senior Notes

Dominion Terminal

Associates (“DTA”) bonds

Other

Debt

30.9

95.0

43.2

69.6

$ 274.5

129.0

95.0

43.2

50.3

359.3

Shareholders’ equity

$ 495.6

381.2

(98.1)

19.3

(84.8)

114.4

Other Liquidity Information:

Cash and cash equivalents

Amount sold under

accounts receivable

securitization facility

Net Debt (a)

Net Financings (a)

$ 128.7

102.3

26.4

77.0

145.8

222.8

72.0

257.0

329.0

5.0

(111.2)

(106.2)

(a) These are Non-GAAP measures. Net Debt is equal to short-term debt plus the current and noncurrent portion of long-term debt (“Debt” in

the tables), less cash and cash equivalents. Net Financings are equal to Net Debt plus the amount sold under the accounts receivable
securitization facility. See reconciliation below.

(b)

In addition to cash borrowings and repayments, the change in the debt balance also includes changes in currency exchange rates and
borrowings under new capital leases.

The Brink’s Company

2003 ANNUAL REPORT

Reconciliation of Net Debt and Net Financings to GAAP Measures

(In millions)

Short-term debt

Long-term debt

DTA bonds

Debt

Less cash and cash equivalents

Net Debt

Amounts sold under accounts receivable

securitization facility

Net Financings

December 31,

2003

2002

2001

2000

1999

35.8

238.7

274.5

(128.7)

145.8

77.0

$ 222.8

41.8

317.5

359.3

(102.3)

257.0

72.0

329.0

27.8

270.1

43.2

341.1

51.0

345.8

43.2

444.0

(86.7)

(97.8)

254.4

342.2

69.0

323.4

85.0

427.2

90.1

424.4

30.2

544.7

(131.2)

413.5

The Company believes the presentation of Net Debt and Net Financings are useful measures of the Company’s
financial leverage.

Debt
The Company has an unsecured $350 million U.S. revolving bank credit facility (the “U.S. Revolving Facility”)
with a syndicate of banks under which it may borrow (or otherwise satisfy credit needs) on a revolving basis
over a three-year term ending September 2005. At December 31, 2003, $239.9 million was available under the
U.S. Revolving Facility.

The Company has three unsecured multi-currency revolving bank credit facilities with a total of $110 million in
available credit, of which $52.6 million was available at December 31, 2003. When rates are favorable, the
Company also borrows from other U.S. banks under short-term uncommitted agreements. Various foreign
subsidiaries maintain other secured and unsecured lines of credit and overdraft facilities with a number of
banks. Amounts borrowed under these agreements are included in short-term borrowings.

The U.S. Revolving Facility and the multi-currency revolving credit facilities are also used for the issuance of
letters of credit and bank guarantees, in addition to providing funds for operating purposes.

At December 31, 2003, the Company had $95.0 million of Senior Notes outstanding that are scheduled to be
repaid in 2005 through 2008. The Company has the option to prepay all or a portion of the Senior Notes prior to
maturity with a prepayment penalty. The Senior Notes are unsecured.

The Company’s Brink’s, BHS, and BAX Global subsidiaries have guaranteed the U.S. Revolving Facility and the
Senior Notes. The U.S. Revolving Facility, the agreement under which the Senior Notes were issued and the
multi-currency revolving bank credit facilities each contain various financial and other covenants. The financial
covenants, among other things, limit the Company’s total indebtedness, provide for minimum coverage of
interest costs, and require the Company to maintain a minimum level of net worth. If the Company were not to
comply with the terms of its various loan agreements, the repayment terms could be accelerated. An
acceleration of the repayment terms under one agreement could trigger the acceleration of the repayment terms
under the other loan agreements. The Company was in compliance with all financial covenants at December
31, 2003.

The Brink’s Company

2003 ANNUAL REPORT

In September 2003, at the Company’s request, the Peninsula Ports Authority of Virginia issued a new series of
bonds to replace the previous bonds related to Dominion Terminal Associates, a deep water coal terminal in
which the Company no longer has an interest. The Company continues to pay interest on and guarantee
payment of the $43.2 million principal of the new bonds and ultimately will have to pay for the retirement of the
new bonds in accordance with the terms of the guarantee. The new bonds bear a fixed interest rate of 6.0%
(versus a fixed interest rate of 7.375% for the previous bonds) and mature in 2033. The new bonds may mature
prior to 2033 upon the occurrence of certain specified events such as the determination that the bonds are
taxable or the failure of the Company to abide by the terms of its guarantee.

The Company believes it has adequate sources of liquidity to meet its near-term requirements.

Equity
At December 31, 2003, the Company had 100 million shares of common stock authorized and 54.3 million
shares issued and outstanding. The Company has the authority to issue up to 2.0 million shares of preferred
stock, par value $10 per share.

The Company has the authority to repurchase up to 1.0 million shares of common stock with an aggregate
purchase price limitation of $19.1 million. The Company made no repurchases during 2003.

Off Balance Sheet Arrangements

The Company has various off-balance sheet arrangements that are described in the notes to the consolidated
financial statements. See note 14 for the accounts receivable securitization program and note 15 for operating
leases that have residual value guarantees or other terms that cause the agreement to be considered a variable
interest. The Company uses these off-balance sheet arrangements to lower its cost of financings. The
Company believes its off-balance sheet arrangements are an important component of its capital structure.

The Brink’s Company

2003 ANNUAL REPORT

Contractual Obligations

The following table includes the contractual obligations of the Company.

Estimated Payments Due by Period

Later

(In millions)

2004

2005

2006

2007

2008

Years

Total

Contractual obligations

Long-term debt obligations (a)

Capital lease obligations (a)

Operating leases obligations (b)

Purchase obligations:

ACMI (c) (d)

Service contracts (c)

Property and equipment

7.3

9.9

137.3

13.0

6.5

6.9

56.1

8.4

95.3

5.6

Other long-term liabilities reflected on the

Company’s balance sheet under GAAP:

Aircraft lease turnback obligations (e)

22.4

29.8

Non-coal related workers compensation

36.5

5.5

66.4

27.0

4.2

50.6

28.7

3.2

46.8

5.1

39.7

121.5

202.4

36.3

510.8

13.0

6.5

12.5

52.2

and other claims

Subtotal

Legacy liabilities (f)

Withdrawal liability from multi-employer

28.0

13.9

7.6

231.3

209.1

116.0

60.0

63.0

62.0

5.2

87.0

57.0

3.3

10.1

68.1

74.9

183.5

901.8

57.0 1,383.0

1,682.0

pension plans (g)

Total

$ 291.3

272.1

178.0

144.0

131.9 1,566.5

2,583.8

(a) Long-term debt and capital lease obligations are reduced when payments of principal are made. Table excludes interest payments. See

note 13 to the consolidated financial statements.

(b) Payments for operating leases in ongoing businesses are recognized as an expense in the consolidated statement of operations as

incurred. See note 15 to the consolidated financial statements.

(c) Payments made pursuant to these purchase obligations are recognized as an expense in the consolidated statement of operations as

incurred. Purchase obligations generally specify a minimum amount of service or product to be consumed by the Company, and the
Company currently expects to consume at least the minimum levels specified in its contracts.

(d) Aircraft, crew, maintenance and insurance agreements. See note 23 to the consolidated financial statements.

(e) Lease agreements for aircraft generally require payments be made for heavy maintenance at the end of the lease term.

(f) The projected payments for liabilities related to former coal operations (legacy liabilities) are discussed in “Results of Operations – Former
Coal and Other Natural Resource Operations”. Payments above, which are expected to be made over the next seventy years, exclude
Administration and other payments.

(g) This table excludes the Company’s estimated withdrawal obligations of $52 million from coal-related multi-employer pension plans. The
timing and the actual amount to be paid, if any, will be based on the funded status of the plans as of the beginning of the plan year that a
withdrawal is deemed to have occurred. It is likely that a withdrawal will be deemed to have occurred within the next two to three years.

Primary U.S. Pension Plan
The Company maintains a noncontributory defined benefit pension plan covering substantially all non-union
employees in the U.S. who meet certain requirements. Using actuarial assumptions as of December 31, 2003,
this plan had an accumulated benefit obligation (“ABO”) of approximately $586 million and a projected benefit
obligation (“PBO”) of $656 million. The ABO is an estimate of the benefits earned through December 31, 2003.
The difference between the ABO and PBO is essentially the expected changes in the value of the benefits due
to projected increases in compensation of plan participants.

The Brink’s Company

2003 ANNUAL REPORT

The ABO and PBO are net present values of expected future cash flows discounted to December 31, 2003 by
6.25%. The Company selects a discount rate for its pension liabilities after reviewing published long-term yield
information for a small number of high-quality fixed-income securities (Moody’s AA bond yields) and yields for
the broader range of long-term high-quality securities. Accordingly, as market interest rates fluctuate, the net
present value of the Company’s obligations will change. The impact of a one percentage point (100 basis point)
change in the discount rate used at December 31, 2003 would have been as follows (decrease)/increase:

(In millions)

Effect on ABO
Effect on PBO
Effect on estimated 2004 expense

Increased
by 1.0%

(76)
(90)
(14)

Interest Rates

Decreased
by 1.0%

95
115
18

The historical and projected benefit payments and expense for the U.S. plan are set out in the table below. The
projected benefits and expense reflect assumptions used in the valuation at year end 2003. These assumptions
are reviewed annually, and it is likely that they will change in future years.

(In millions)
Years Ending December 31,

Benefits (paid from plan trust)
Expense

Actual

2002

21
8

2003

23
18

2004

25
31

Projected
2005

27
39

2006

28
45

The level of expense has increased largely due to the effects of the reduction in the discount rate used over the
last several years and the poor performance of investment markets from 2000 to 2002. The above expense
amounts are charged to the business segments in approximately the following proportions : Brink’s - 55%, BHS
– 15%, BAX – 25%, former natural resources businesses – 5%.

At December 31, 2003, the market value of the plan’s assets approximated $542 million.

Based on December 31, 2003 data, assumptions and funding regulations, the Company does not expect to be
required to make a contribution to the plan for the 2004 and 2005 plan years. Under existing regulations, a
contribution of over $40 million could be required for the 2006 plan year but the actual payment could be
delayed until as late as September 2007.

The above estimated contributions are likely to change. Congress is evaluating changes to the definition of the
discount rate to be used for funding regulations since the discontinuance of the sale of 30-year Treasury bonds
has created distortions in markets. Any change is likely to reduce required contributions. In addition, actual
investment returns and interest rates are likely to differ from those assumed at December 31, 2003. Further, the
Company may elect to contribute to the plan in 2004, 2005 and/or 2006. Voluntary contributions have the effect
of reducing and potentially delaying later required contributions. The Company has made voluntary
contributions aggregating $55 million over the last two years.

The pension plan’s benefits will be earned and paid out over an extended period of time. Accordingly, the
Company takes a long-term approach to funding levels and contribution policies. Historically, long-term returns
on assets invested have significantly exceeded the discount rate for pension liabilities so it is expected that a
portion of the future liability will be funded by investment returns. As a result, the Company’s funding target over
the medium-term is to cover the ABO, essentially, the obligations already earned as of a given measurement
date. Under this approach, the plan was 92% funded at December 31, 2003.

The Brink’s Company

2003 ANNUAL REPORT

Other Potential Use of Credit

Surety Bonds
The Company is required by various state and federal laws to provide security with regard to its obligations to
pay workers’ compensation, to reclaim lands used for mining by the Company’s former coal operations and to
satisfy other benefits. As of December 31, 2003, the Company had outstanding surety bonds with third parties
totaling approximately $178 million that it has arranged in order to satisfy the various security requirements.
Most of these bonds provide financial security for previously recorded liabilities. Because some of the
Company’s reclamation obligations have been assumed by purchasers of the Company’s former coal
operations, $13 million of the Company’s surety bonds are expected to be replaced by purchasers’ surety bonds
after the state mining permits are transferred. Surety bonds are typically renewable on a yearly basis; however,
there can be no assurance the bonds will be renewed or that premiums in the future will not increase. If the
surety bonds are not renewed, the Company believes that it has adequate available borrowing capacity under
its U.S. Revolving Facility to provide letters of credit or other collateral to secure its obligations.

Other Contingent Gains and Losses

Federal Black Lung Excise Tax
In 1999, the U.S. District Court of the Eastern District of Virginia entered a final judgment in favor of certain of
the Company’s subsidiaries, ruling that the Federal Black Lung Excise Tax (“FBLET”) is unconstitutional as
applied to export coal sales. Through December 31, 2003, the Company has received refunds including interest
of $27.2 million, including $2.8 million received in 2003. The Company continues to pursue the refund of other
FBLET payments. Due to uncertainty as to the ultimate receipt of additional amounts, if any, which could
amount to as much as $18 million (before income taxes), the Company has not recorded receivables for
additional FBLET refunds.

Litigation
The Company is defending potentially significant civil suits. Although the Company is defending these cases
vigorously and believes that its defenses have merit, it is possible that one or more of these suits ultimately may
be decided in favor of the plaintiffs. If so, the Company expects that the ultimate amount of unaccrued losses
could range from $0 to $40 million.

Environmental Remediation
The Company has agreed to pay a portion of the remediation costs arising from hydrocarbon contamination at a
formerly owned petroleum terminal facility (“Tankport”) in Jersey City, New Jersey, which was sold in 1983. The
Company is in the process of completing remediation of the site under an approved plan. In the fourth quarter
of 2003, the Company and a third party reached an agreement that establishes the allocation of past costs
related to the recovery of environmental costs, and as a result, the Company recognized a $5.3 million pretax
gain in discontinued operations. The Company estimates its portion of the remaining clean-up and operational
and maintenance costs to be $2.5 million.

Other Coal-related Contingencies
The Company has also recorded estimated liabilities for other contingent liabilities, including those for Health
Benefit Act premiums to the Combined Fund, expected settlement of coal-related workers’ compensation claims
and certain reclamation obligations. Annual actuarial and engineering valuations of these liabilities are typically
completed in the fourth quarter each year. These are discussed in more detail at “Results of Operations –
Retained Liabilities and Assets of Former Natural Resource Operations – Legacy Liabilities and Assets.”

The Company is in the process of transferring mining permits to buyers of its former coal interests. Until the
permits are transferred, the Company is contingently liable for the reclamation of these mining sites.

The Brink’s Company

2003 ANNUAL REPORT

MARKET RISK EXPOSURES

The Company has activities in more than 100 countries and a number of different industries. These operations
expose the Company to a variety of market risks, including the effects of changes in interest rates, commodities
prices and foreign currency exchange rates. These financial and commodity exposures are monitored and
managed by the Company as an integral part of its overall risk management program.

The Company utilizes various derivative and non-derivative financial instruments, as discussed below, to hedge
its interest rate, commodities prices and foreign currency exposures when appropriate. The risk that
counterparties to these instruments may be unable to perform is minimized by limiting the counterparties used
to major financial institutions with investment grade credit ratings. The Company does not expect to incur a loss
from the failure of any counterparty to perform under the agreements. The Company does not use derivative
financial instruments for purposes other than hedging underlying financial or commercial exposures.

The sensitivity analyses discussed below for the market risk exposures were based on the facts and
circumstances in effect at December 31, 2003. Actual results will be determined by a number of factors that are
not under management’s control and could vary materially from those disclosed.

Interest Rate Risk

The Company uses both fixed and floating rate debt and off-balance sheet instruments to finance its operations.
Floating rate obligations, including the Company’s U.S. bank credit facility, the accounts receivable
securitization facility and some of its operating lease facilities, expose the Company to fluctuations in cash flows
due to changes in the general level of interest rates.

In order to limit the variability of future cash flows, the Company has converted floating rate cash flows on a
portion ($50.0 million effective December 2003 through August 2005) of its accounts receivable securitization
facility to fixed-rate cash flows by entering into interest rate swap agreements which involve the exchange of
floating rate payments for fixed rate payments. The fair value liability of these interest swaps at December 31,
2003 was $0.9 million. In addition to the interest rate swaps, the Company also has fixed rate debt, including
the Company’s Senior Notes and Dominion Terminal Associates debt. The fixed rate debt and interest rate
swaps are subject to fluctuations in their fair values as a result of changes in interest rates.

Based on interest rate swaps in effect and the contractual interest and discount rates on the floating rate debt
and the securitization facility, respectively, at December 31, 2003, a hypothetical 10% increase in these rates
would increase cash outflows by approximately $0.6 million over a twelve-month period (in other words, the
Company’s weighted average interest rate on its unhedged floating rate instruments was 3.99% per annum at
December 31, 2003. If that average rate were to increase by 40 basis points to 4.39%, the cash outflows
associated with these instruments would increase by $0.6 million annually). The effect of a hypothetical 10%
increase in interest rates on the Company’s operating lease facilities would also not have a material effect on
the Company’s financial position or results of operations over the next fiscal year. The effect on the fair value of
the interest rate swaps for a hypothetical 10% decrease in the yield curves from year-end 2003 levels is not
material. The effect on the fair value of the Company’s Senior Notes and Dominion Terminal Associates debt
for a hypothetical 10% decrease in the yield curves from year-end 2003 levels would result in a $4.9 million
increase in the fair value of such debt.

The Brink’s Company

2003 ANNUAL REPORT

Commodities Price Risk

The Company consumes various commodities in the normal course of its business and, from time to time,
utilizes derivative financial instruments to minimize the variability in forecasted cash flows due to price
movements in these commodities. The derivative contracts are entered into in accordance with guidelines set
forth in the Company’s risk management policies.

During 2003, the Company utilized swap contracts to fix a portion of forecasted jet fuel purchases at specific
price levels. In addition, depending on market conditions, the Company has been able to adjust its pricing
through the use of surcharges on customers to partially offset large increases in the cost of jet fuel. During
2003, the Company utilized forward sales contracts and option strategies to hedge the selling price on a portion
of its forecasted natural gas and gold sales. The Company exited the natural gas business in 2003 and the gold
business in early 2004. Following the sale of the gold business, the Company has no outstanding forward gold
sales contracts.

The following table represents the Company’s outstanding jet fuel swap contracts as of December 31, 2003.
Amounts presented as the fair value after a hypothetical 10% change in commodity prices reflect a hypothetical
10% reduction in the future price of jet fuel.

Notional

Amount

8.0

Estimated Fair

Value of Assets

With 10%

Actual

Price Decrease

0.7

0.1

(In millions, except as noted)

Jet fuel forward swaps (a)

(a) Notional amount in millions of gallons of fuel.

Foreign Currency Risk

The Company, primarily through its Brink’s and BAX Global operations, has certain exposures to the effects of
foreign currency exchange rate fluctuations on the results of foreign operations which are reported in U.S.
dollars.

The Company is exposed periodically to the foreign currency rate fluctuations that affect transactions not
denominated in the functional currency of domestic and foreign operations. To mitigate these exposures, the
Company, from time to time, enters into foreign currency forward contracts. The Company does not use
derivative financial instruments to hedge investments in foreign subsidiaries due to their long-term nature.

The effects of a hypothetical simultaneous 10% appreciation in the U.S. dollar from year-end 2003 levels
against all other currencies of countries in which the Company operates are as follows:

(In millions)

Translation of 2003 earnings into U.S. dollars
Transactional exposures
Translation of net assets of foreign subsidiaries

Hypothetical Effects

Increase/ (decrease)

(6.1)
2.1
(45.1)

The Brink’s Company

2003 ANNUAL REPORT

APPLICATION OF CRITICAL ACCOUNTING POLICIES

The application of accounting principles requires the use of assumptions, estimates and judgments which are
the responsibility of management. Management makes estimates and judgments based on, among other
things, knowledge of operations, markets, historical trends and likely future changes, similarly situated
businesses and, when appropriate, the opinions of advisors with knowledge and experience in certain fields.
Many assumptions, estimates and judgments are straightforward; other assumptions are not. Reported results
could have been materially different had the Company used a different set of assumptions, estimates and
judgments for certain accounting principle applications.

Deferred Tax Assets and Tax Contingencies

It is common for companies to record expenses and accruals before expenses and costs are paid. In the U.S.
and most other countries and tax jurisdictions, many deductions for tax return purposes cannot be taken until
the expenses are paid.

Similarly, certain tax credits and tax loss carryforwards cannot be used until future periods when sufficient
taxable income is generated. In these circumstances, under GAAP, companies accrue for the tax benefit
expected to be received in future years if, in the judgment of management, it is “more likely than not” that the
company will receive the tax benefits. These benefits (deferred tax assets) are often offset, in whole or in part,
by the effects of deferred tax liabilities which relate primarily to deductions available for tax return purposes
under existing tax laws and regulations before expenses are reported as expenses under GAAP.

As of December 31, 2003, the Company has $347.8 million of net deferred tax assets on its consolidated
balance sheet. For more details associated with this net balance, see note 18 to the accompanying consolidated
financial statements.

Since there is no absolute assurance that these assets will be ultimately realized, management annually
reviews the Company’s deferred tax positions to determine if it is more likely than not that the assets will be
realized. Periodic reviews include, among other things, the nature and amount of the tax income and expense
items, the expected timing when certain assets will be used or liabilities will be required to be reported and the
reliability of historical profitability of businesses expected to provide future earnings. Furthermore, management
considers tax-planning strategies it can use to increase the likelihood that the tax assets will be realized. These
strategies are also considered in the periodic reviews. If after conducting the periodic review, management
determines that the realization of the tax asset does not meet the “more-likely-than-not” criteria, an offsetting
valuation allowance is recorded thereby reducing net earnings and the deferred tax asset in that period. For
these reasons and since changes in estimates can materially affect net earnings, management believes the
accounting estimate related to deferred tax asset valuation reserves is a “critical accounting estimate.”

Approximately 85% of the deferred tax assets before valuation allowance at December 31, 2003 relates to the
U.S. federal tax jurisdiction. Due to its expectation that the historical profitability of the Company’s U.S. portion
of the Business and Security Services operations will continue and the lengthy period over which certain of the
recorded expenses will become available for deduction on tax returns, management has concluded that it is
more likely than not that these net deferred tax assets will be realized. The Company’s expectation of future
profitability in the U.S. includes a projected improvement in the U.S. operations of BAX Global even though
losses have been recorded in the last several years. The Company projects BAX Global’s results in the U.S.
will improve materially as the U.S. economy strengthens and the demand for expedited freight grows. The
Company’s expectations for future profitability within the U.S. also include the benefit of the elimination of losses
from the former coal operations.

The Brink’s Company

2003 ANNUAL REPORT

For U.S. state jurisdictions and non-U.S. jurisdictions, the Company has evaluated its ability to fully utilize the
net deferred tax assets on an individual jurisdiction basis. Due to a recent history of losses in certain
jurisdictions and doubts about whether future operating performance will be sufficiently profitable to realize
deferred tax assets, the Company has recorded a $38.5 million valuation allowance at December 31, 2003,
including $27.9 million recorded in 2003.

Should tax statutes, the timing of deductibility of expenses, or expectations for future performance change, the
Company could decide to revise its valuation allowances, which would increase or decrease tax expense,
possibly materially.

Goodwill and Property and Equipment Valuations

At December 31, 2003, the Company has $873 million of property and equipment and $244 million of goodwill,
net of accumulated depreciation and amortization. The Company reviews the assets for possible impairment
using the guidance in SFAS No. 142, “Goodwill and Other Intangible Assets,” for goodwill and SFAS No. 144,
“Accounting for the Impairment or Disposal of Long-lived Assets,” for property and equipment and other long-
lived assets. The review for impairment requires the use of significant judgments about the future performance
of the Company’s operating subsidiaries.

Goodwill is reviewed for impairment at least annually. The Company estimates the fair value of Brink’s and BAX
Global, the two reporting units that have goodwill, primarily using estimates of future cash flows. The fair value
of the reporting unit is compared to its carrying value to determine if an impairment exists. At December 31,
2003, net goodwill was $78 million at Brink’s and $166 million at BAX Global.

To determine if an impairment exists related to property and equipment, the Company compares estimates of
the future undiscounted net cash flows of the asset to its carrying value when there is a triggering event for a
review. For purposes of assessing impairment, assets are grouped at the lowest level for which there are
identifiable cash flows that are largely independent of the cash flows of other groups of assets.

Due to a history of profitability and cash flow, the carrying values of long-lived assets of Brink’s are believed to
be appropriate.

Each quarter, when BHS customers disconnect their monitoring service, BHS records an impairment charge
related to the carrying value of the related home security systems estimated to be permanently disconnected
based on historical reconnection experience. BHS makes estimates about future reconnection experience in its
estimate of impairment charges. Future reconnection experience is estimated using historical data. Should the
estimate of future reconnection experience change, BHS’s impairment charges would be affected.

BAX Global had a profit in 2003 and 2002 and a loss in 2001. Changes to the Company’s operations,
resources used, and cost structure in 2000 reduced the level of fixed costs in the Intra-America network. In
management’s opinion, the changes implemented at BAX Global and a return to more normal levels of global
economic performance will result in substantial improvement in operating performance and cash flow over time.
Based on this judgment, the Company prepared multi-year projections of cash flows for BAX Global, which it
used in the impairment analysis for goodwill and long-lived assets. This analysis did not indicate an impairment
in goodwill or long-lived assets. If actual cash flows are significantly lower than projected cash flows, future
impairment tests may result in an impairment of a portion or all of BAX Global’s goodwill ($166 million at
December 31, 2003).

The Brink’s Company

2003 ANNUAL REPORT

Withdrawal Liabilities

The Company has recorded a $52.0 million estimate for probable withdrawal obligations from two coal-related
multi-employer pension plans. The liability, an estimate of the Company’s share of any unfunded liability of the
plans, is developed using the formulas designated by plan documents and by law. The Company’s actual
withdrawal liability, if any, will depend on the funded status of the multi-employer pension plans at the time that
the Company actually withdraws from the plans. A withdrawal from the plans is triggered by the elimination of
or a significant reduction in the hours worked by employees working under UMWA labor agreements.

The estimated withdrawal liabilities at December 31, 2003 are based on the funded status of the plans as of
June 30, 2003, the most recent plan measurement date. The estimate may change materially each year until
the Company actually withdraws from the plans. Changes in this estimate are recorded in discontinued
operations.

Employee and Retiree Benefit Obligations

The Company provides its employees and retirees benefits arising from both Company-sponsored plans (e.g.
defined benefit pension plans) and statutory requirements (e.g. medical benefits for otherwise ineligible former
employees and nonemployees under the Health Benefit Act). Certain of these benefit obligations require
payments to be made by the Company or by trusts funded by the Company over long periods of time.

The primary benefits which require cash payments over an extended period of years are:

• Defined Benefit Pension obligation
• Postretirement Medical obligation
• Health Benefit Act premiums to the Combined Fund
• Black Lung obligation

As is normal for these benefits, cash payments will be made for periods ranging from the current year to over
seventy years from now for certain benefits. The amount of the cash payments and related expenses will be
affected over time by inflation, investment returns and market interest rates, changes in the numbers of plan
participants and changes in the benefit obligations and/or laws and regulations covering the benefit obligations.

GAAP requires that the Company reevaluate all significant benefit obligations at least annually, and as a result
of these reevaluations, the Company records increases or decreases in liabilities and associated expenses over
time as required under GAAP.

Below are the critical assumptions that determine the carrying values of liabilities and the resulting annual
expense. The plans that are affected by the assumptions discussed are identified parenthetically in the relevant
title.

The Brink’s Company

2003 ANNUAL REPORT

Discount Rate (Pension Plans, Postretirement Medical Benefits Under Company-Sponsored
Plans and “Black Lung” Benefits)
The discount rate is used to determine the present value of future payments. This rate reflects returns expected
from high-quality bonds and will fluctuate over time with market interest rates. In general, the Company’s liability
changes in an inverse relationship to interest rates, i.e. the lower the discount rate, the higher the associated
liability for the noted benefit obligations.

The Company selects a discount rate for its pension liabilities after reviewing published long-term yield
information for a small number of high-quality fixed-income securities (Moody’s AA bond yields) and yields for
the broader range of long-term high-quality securities. After considering these factors, the Company selected a
discount rate of 6.25% for the valuation as of December 2003. A year ago when market interest rates were
higher, the discount rate was 6.75%.

Valuations of plan obligations at each year end and calculations of net periodic expenses for the following year
can be materially changed based on the level of market rates and the resulting discount rate chosen.

Below are tables reflecting changes in liability values as of December 31, 2003 and estimated expenses for
2004 based on 100 basis point differences in the discount rate.

Plan Obligations at December 31, 2003

(In millions)

Primary U.S. pension plan:

ABO

PBO

Coal-related postretirement medical:

Before Medicare Reform Act

After Medicare Reform Act

Black Lung obligations

Projected 2004 Expense

(In millions)

Primary U.S. pension plan

Coal-related postretirement medical:

Before Medicare Reform Act

After Medicare Reform Act

Black Lung obligations

Hypothetical
5.25%

Actual
6.25%

Hypothetical
7.25%

681

771

640

588

586

656

572

526

510

566

512

471

Hypothetical
5.25%

Actual
6.25%

Hypothetical
7.25%

Under government regulations, funding requirements for the Company’s primary U.S. pension plan are
determined using a different set of assumptions than is used for financial accounting purposes. Near-term
funding requirements would, therefore, not be affected unless interest rates declined sharply.

The Brink’s Company

2003 ANNUAL REPORT

Return on Assets (Pension Plan)
The Company’s primary U.S. defined benefit pension plan had assets at December 31, 2003 of approximately
$542 million. This pension plan’s assets are invested primarily using actively managed accounts with asset
allocation targets of 47.5% domestic equities and 22.5% international equities, which include a broad array of
market cap sizes and investment styles, and 30% fixed income securities. The Company’s policy does not
permit certain investments, including investments in The Brink’s Company common stock, unless part of a
commingled fund, or derivative instruments unless used for hedging purposes. Fixed-income investments must
have an investment grade rating at the time of purchase. The plan rebalances its assets on a quarterly basis if
actual allocations of assets exceed predetermined limits. Among other factors, the performance of asset groups
and investment managers will affect the long-term rate of return.

Pension accounting principles require companies to use estimates of expected asset returns over long periods
of time. The Company selects the expected long-term rate of return assumption using advice from its
investment advisor and its actuary considering the plan’s asset allocation targets and expected overall
investment manager performance and a review of its most recent ten-year historical average compounded rate
of return. After following the above process, the Company selected 8.75% as its expected long-term rate of
return as of December 31, 2003 and 2002.

It is unlikely that in any given year the actual rate of return will be the same as the assumed long-term rate of
return. In general, if actual returns exceed the expected long-term rate of return, future levels of expense will go
down and vice-versa. Over the last ten years, the annual returns of the Company’s primary pension plan have
fluctuated from a high of a 28% gain (2003) to a low of a 9% loss (2002) and averaged 10% over the period.
During that time period there were six years in which returns exceeded the assumed long-term rate of return
and four years, including the three years ended December 31, 2002, with returns below the assumed long-term
rate of return.

If the Company were to use a different long-term rate of return assumption, it would affect annual pension
expense but would have no immediate effect on funding requirements. For every hypothetical change of 100
basis points in the assumed long-term rate of return on plan assets, the Company’s U.S. annual pension plan
expense in 2003 would increase or decrease by approximately $5 million before tax.

The reduction (or “credit”) to pension expense associated with the assumed investment return fluctuates based
on the level of plan assets (over time, the higher the level of assets, the higher the credit and vice versa) and
the assumed rate of return (the higher the rate, the higher the credit and vice versa). Plan assets for the
Company’s U.S. defined benefit plan increased by approximately $111 million in 2003; $24 million since
December 31, 2000 as a result of losses in 2001 and 2002.

The Company calculates expected investment returns by applying the expected long-term rate of return to the
market-related value of plan assets. The market-related value of the plan assets is different from the actual or
fair-market value of the assets. The actual or fair-market value is the value of the assets at a point in time that
are available to make payments to pensioners and to cover any transaction costs. The market-related value
recognizes changes in fair-value on a straight-line basis over five years. This spreading reduces the effects of
year-over-year volatility in the financial markets.

The Company had significant investment losses in the three years ending December 31, 2002 that have not yet
fully affected pension expense. The Company expects its pension expense will increase in the next several
years because of the amortization of the net investment losses. This will be partially offset by the return earned
in 2003.

The Brink’s Company

2003 ANNUAL REPORT

Inflation Assumptions on Salary Levels (Pension Plan) and Medical Inflation (Postretirement
Medical Benefits, Health Benefit Act Medical Benefits)
Pension expense and liabilities will vary with the expected rate of salary increases – the higher or lower the
annual increase, the higher or lower the liability and expense. The Company expects its salary increase
assumption to remain at or about 5%, assuming current rates of inflation.

Changes in medical inflation will affect liability and expense amounts differently for the three plans noted. There
is a direct link between medical inflation and expected spending for postretirement medical benefits under the
Company-sponsored plan for 2004 and for later years. Future cash payments associated with the Health Benefit
Act will reflect only a portion of the effect of medical inflation as a result of statutory limitations on premium
growth.

For the retiree medical plan the Company assumed inflation rates of 9% for 2004, and expects these rates will
decline to 5% by 2009 for the Company-sponsored plans. The average annual increase in the plan for the last
three years has been below 9%. Health Benefit Act liabilities were assumed to have a 4.5% inflation rate. The
average annual premium increases over the last three years have been below 4.5%. Because of the volatility of
medical inflation it is likely that there will be future adjustments, although the direction and extent of these
adjustments cannot be predicted at the present time.

Numbers of Participants (All Plans)
The valuations of all of these benefit plans are affected by the life expectancy of the participants. Accordingly,
the Company relies on actuarial information to predict the number and life expectancy of participants. Further,
due to the complexity of the contractual relationship with the UMWA for postretirement medical benefits and the
application of regulations associated with the Health Benefit Act, the Company’s related liability and expense
has and will continue to fluctuate as mortality rates change, as new participants are made known to the
Company and as the Company and others investigate the application of the regulations. As a result, the
Company’s liabilities under its plans will vary as the expected number and life expectancy of participants
change.

Changes in Laws
The Company’s valuations of its liabilities are determined under existing laws and regulations. Changes in laws
and regulations which affect the ultimate level of liabilities and expense are reflected once the changes are final
and their impact can be reasonably estimated. Recent changes in laws that provide government subsidies for
amounts paid for pharmaceuticals for Medicare-eligible medical plan participants are expected to reduce the
Company’s liability. Changes in black lung regulations in 2000 could increase the Company’s total liability.
Changes in laws directed at changing the funding available for medical benefits related to nonemployee
beneficiaries under the Health Benefit Act could significantly reduce the Company’s ultimate liability for certain
postretirement medical benefits.

Workers’ Compensation

Besides the effects of changes in medical costs, workers’ compensation costs are affected by the severity and
types of injuries, changes in state regulations and their application and the quality of programs which assist an
employee’s return to work. The Company’s liability for future payments for workers’ compensation claims is
evaluated annually with the assistance of its actuary.

The Brink’s Company

2003 ANNUAL REPORT

RECENT ACCOUNTING PRONOUNCEMENTS

In January 2003, the FASB issued FASB Interpretation No. 46 (revised December 2003, “FIN 46R”),
“Consolidation of Variable Interest Entities”, which addresses how a business enterprise should evaluate
whether it has a controlling financial interest in an entity through a means other than voting rights and
accordingly should consolidate the entity. FIN 46R replaces FASB Interpretation No. 46, “Consolidation of
Variable Interest Entities”, which was issued in January 2003. The Company will be required to apply FIN 46R
to variable interests in variable interest entities (“VIEs”) after December 31, 2003.

The Company is evaluating the impact of applying FIN 46R to existing VIEs in which it has variable interests
and has not yet completed this analysis. As the Company continues to evaluate the impact of applying FIN
46R, additional entities may be identified that would need to be consolidated by the Company. The
implementation of this new standard is not expected to have a material effect on the Company’s results of
operations or financial position.

In December 2003, the FASB issued SFAS No. 132R, “Employers’ Disclosure about Pensions and Other
Postretirement Benefits.” SFAS No. 132R requires additional disclosures about defined benefit pension plans
and other postretirement benefit plans; it does not change the way liabilities are valued and expenses are
calculated for those plans. The standard requires, among other things, additional disclosures about the assets
held in employer sponsored pension plans, disclosures relating to plan asset investment policy and practices,
disclosure of expected contributions to be made to the plans and expected benefit payments to be made by the
plans. Disclosures applicable to the Company’s U.S. pension and retirement plans are required to be made in
the Company’s consolidated financial statements for the year ended December 31, 2003. Disclosures relating
to the Company’s non-U.S. plans will be required for the year ending December 31, 2004. See note 4 to the
consolidated financial statements for the required disclosures.

FORWARD-LOOKING INFORMATION

Certain of the matters discussed herein, including statements regarding the expectation of significant ongoing
expenses and cash outflows related to former coal operations, operational efficiencies, economic condition and
the movement of certain coal-related expenses to continuing operations being indicators of future performance,
the recordation of future gains and impairment charges, the reversal of valuation reserves, the anticipated
decline of expenses and payments related to the former coal business, increases in pension and health care
expense, the benefits to Brink’s European operating results in the first half of 2004 of management changes and
workforce reductions, the impact of the national “Do Not Call” list on BHS, the impact that the refusal of police
departments to respond to calls from alarm companies without visual verification would have on BHS’ results of
operations, the duration of the shift from expedited to deferred delivery, possible increases in the absolute
weight of expedited freight in an improving economy, the continuing effects of the weak European economy on
BAX Global’s performance, expected tax receivables from Virginia, projected payments and expenses related to
legacy liabilities of former coal operations, expected coal-related tax benefits, the estimated payout period for
annual Combined Fund premiums, the timing of and liability for withdrawal from coal-related multi-employer
pension plans, the classification of expenses related to the former natural resources businesses in 2004 and
beyond, the expectation that the Company will recognize additional pre-tax gains in discontinued operations in
the first and second quarters of 2004, the expected recognition of a gain in 2004 as reclamation related liabilities
are transferred to the buyer of the West Virginia coal properties, expected costs associated with compliance
with Section 404 of the Sarbanes-Oxley Act of 2002, the possibility that Venezuela may be considered highly
inflationary again, the impact of the disposal of the coal business on the volatility of cash flow, expected
payments in 2004 related to the transfer of the timber business, capital expenditures in 2004, the completion of
IT projects at BAX Global, expenditures for aircraft heavy maintenance in 2004, estimated contractual
obligations for the next five and later years, the adequacy of sources of liquidity to meet the Company’s near
term requirements, the use of earnings from foreign subsidiaries and equity affiliates, possible pension plan
funding, the replacement of some of the Company’s surety bonds due to the assumption of various reclamation

The Brink’s Company

2003 ANNUAL REPORT

obligations by purchasers of the Company’s former coal operations, the ability of the Company to provide letters
of credit or other collateral to replace any surety bonds that are not renewed in the future, future contributions to
and use of the VEBA, the amount and timing of additional FBLET refunds, if any, the outcome of pending
litigation, estimated remaining clean-up, operational and maintenance costs for the Tankport matter, estimates
for coal-related contingent liabilities, the likelihood of losses due to non-performance by parties to hedging
instruments, the expectation that the Company will realize the benefit of net deferred tax assets, improvements
in the results, operating performance and cash outflows of BAX Global as global economies strengthen and the
demand for expedited freight grows and the possible impairment of goodwill if BAX Global’s projections are
incorrect, expected increase in the pension plan investment credit, the Company’s salary increase assumption,
changes in the assumed level of inflation for a number of the Company’s benefit plans and the impact of recent
changes in law on the Company’s liabilities, involve forward-looking information which is subject to known and
unknown risks, uncertainties, and contingencies which could cause actual results, performance or
achievements, to differ materially from those which are anticipated.

Such risks, uncertainties and contingencies, many of which are beyond the control of the Company, include, but
are not limited to, the timing of the pass-through of costs by third parties and governmental authorities relating to
the disposal of the coal assets, retirement decisions by mine workers, black lung claims incidence, the number
of dependents of mine workers for whom benefits are provided, actual medical and legal expenses related to
benefits, the funding and benefit levels of multi-employer plans and pension plans, changes in inflation rates
and interest rates, acquisitions and dispositions made by the Company in the future, the completion and
processing of permit replacement documentation and the ability of the purchasers of coal assets to post the
required bonds, the return to profitability of operations in jurisdictions where the Company has recorded
valuation adjustments, the ability of Brink’s management to effectively address economic and other pressures in
Europe, costs associated with Brink’s workforce reductions, the number of participants on the “Do Not Call” list,
BHS’ ability to market through channels other than outbound telemarketing, the ability of the home security
industry to dissuade law enforcement and municipalities from refusing to respond to alarms, the willingness of
BHS’ customers to pay for private response personnel or other alternatives to police responses to alarms, the
ability of businesses to satisfy their obligations through the use of deferred delivery, BAX Global’s ability to
manage costs, the release of the remaining escrowed timber purchase price, the amount of work performed by
third parties in connection with the Company’s compliance with Section 404 of the Sarbanes-Oxley Act of 2002,
the demand for capital by the Company in the U.S. and the availability of such capital, significant changes in the
utilization of leased or owned aircraft, the unanticipated need for significant liquidity, the ability and willingness
of the Company’s lenders to provide liquidity, the cash, debt, and tax position and growth needs of the
Company, the funding of and accounting for the VEBA, positions taken by governmental authorities with respect
to claims for FBLET refunds and Virginia tax receivables, discovery of new facts relating to civil suits, the
addition of claims or changes in damages sought by adverse parties, changes in the scope or method of
remediation or monitoring of the Tankport property, the nature of the Company’s hedging relationships, the
deferral of air freight in the U.S., the financial performance of the Company, overall economic and business
conditions, foreign currency exchange rates, the impact of continuing initiatives to control costs and increase
profitability, pricing and other competitive industry factors, fuel prices, new government regulations, legislative
initiatives, judicial decisions, variations in costs or expenses and the ability of counterparties to perform.

The Brink’s Company

2003 ANNUAL REPORT

STATEMENT OF MANAGEMENT RESPONSIBILITY

The management of The Brink’s Company (the “Company”) is responsible for preparing the accompanying
consolidated financial statements and for their integrity and objectivity. The statements were prepared in
accordance with accounting principles generally accepted in the United States of America. Management has
also prepared the other information in the annual report and is responsible for its accuracy.

In meeting our responsibility for the integrity of the consolidated financial statements, we maintain a system of
internal controls designed to provide reasonable assurance that assets are safeguarded, that transactions are
executed in accordance with management’s authorization and that the accounting records provide a reliable
basis for the preparation of the consolidated financial statements. Qualified personnel throughout the
organization maintain and monitor these internal controls on an ongoing basis. In addition, the Company
maintains an internal audit department that systematically reviews and reports on the adequacy and
effectiveness of the controls, with management follow-up as appropriate.

Management has also established a formal Business Code of Ethics for all employees including its financial
executives. We acknowledge our responsibility to establish and preserve an environment in which all employees
properly understand the fundamental importance of high ethical standards in the conduct of our business.

The Company’s consolidated financial statements have been audited by KPMG LLP, independent auditors.

The Company’s Board of Directors pursues its oversight role with respect to the Company’s consolidated
financial statements through the Audit and Ethics Committee, which is composed solely of outside directors.
The Committee meets periodically with the independent auditors, internal auditors and management to review
the Company’s control system and to ensure compliance with applicable laws and the Company’s Business
Code of Ethics.

We believe that the policies and procedures described above are appropriate and effective and enable us to
meet our responsibility for the integrity of the Company’s consolidated financial statements.

The Brink’s Company

2003 ANNUAL REPORT

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders
The Brink’s Company

We have audited the accompanying consolidated balance sheets of The Brink’s Company and subsidiaries (the
“Company”) as of December 31, 2003 and 2002, and the related consolidated statements of operations,
comprehensive income (loss), shareholders’ equity and cash flows for each of the years in the three-year period
ended December 31, 2003. These consolidated financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these consolidated financial statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of The Brink’s Company and subsidiaries as of December 31, 2003 and 2002, and the results
of their operations and their cash flows for each of the years in the three-year period ended December 31, 2003,
in conformity with accounting principles generally accepted in the United States of America.

As discussed in note 1 to the consolidated financial statements, effective January 1, 2002, the Company
adopted the provisions of Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible
Assets.”

KPMG LLP
Richmond, Virginia
February 4, 2004

The Brink’s Company

2003 ANNUAL REPORT

THE BRINK’S COMPANY
and subsidiaries

Consolidated Balance Sheets

(In millions, except per share amounts)

ASSETS

Current assets:
Cash and cash equivalents
Accounts receivable, (net of estimated uncollectible

amounts: 2003 - $27.6; 2002 - $35.5)
Prepaid expenses and other current assets
Deferred income taxes

Total current assets

Property and equipment, net
Goodwill, net
Investments held by Voluntary Employees’ Beneficiary Association trust
Deferred income taxes
Other

December 31,

2003

2002

128.7

580.3
59.8
91.7
860.5

873.2
244.1
105.2
282.7
182.9

102.3

540.0
58.4
81.3
782.0

871.2
227.9
18.2
349.3
211.3

Total assets

2,548.6

2,459.9

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Short-term borrowings
Current maturities of long-term debt
Accounts payable
Accrued liabilities

Total current liabilities

Long-term debt
Accrued pension costs
Postretirement benefits other than pensions
Deferred revenue
Deferred income taxes
Other

Total liabilities

Commitments and contingent liabilities
(notes 4, 6, 13, 14, 15, 18 and 23)

Shareholders’ equity:
Common stock, par value $1 per share:

Authorized: 100.0 shares

Issued and outstanding: 54.3 shares

Capital in excess of par value
Retained earnings
Employee benefits trust, at market value
Accumulated other comprehensive income (loss):

Minimum pension liabilities
Foreign currency translation
Unrealized gains (losses) on cash flow hedges
Unrealized gains (losses) on marketable securities

Accumulated other comprehensive loss

Total shareholders’ equity

35.8
17.2
286.9
504.2
844.1

221.5
86.6
504.2
130.7
26.5
239.4
2,053.0

54.3
383.0
237.2
(14.0)

(122.1)
(45.6)
0.1
2.7
(164.9)

495.6

41.8
13.3
261.9
476.3
793.3

304.2
122.6
471.7
127.0
28.4
231.5
2,078.7

54.3
383.0
213.1
(33.0)

(137.2)
(93.5)
(5.2)
(0.3)
(236.2)

381.2

Total liabilities and shareholders’ equity

2,548.6

2,459.9

See accompanying notes to consolidated financial statements.

The Brink’s Company

THE BRINK’S COMPANY
and subsidiaries

Consolidated Statements of Operations

2003 ANNUAL REPORT

(In millions, except per share amounts)

Revenues

Expenses:

Operating expenses

Selling, general and administrative expenses

Total expenses

Gain on sale of equity interest

Other operating income, net

Operating profit

Interest income

Interest expense

Stabilization Act compensation

Other income (expense), net

Minority interest

Income from continuing operations before income taxes

Provision for income taxes

Income from continuing operations

Income (loss) from discontinued operations

(Years ended December 31, 2002 and 2001 include certain retained

expenses of $2 million and $53 million, respectively, of former
coal operations which, beginning in 2003, are recorded in continuing
operations. See note 6.)

Years Ended December 31,
2002

2001

2003

3,998.6

3,733.8

3,584.0

3,404.2

520.6

3,924.8

10.4

15.6

99.8

6.2

(25.4)

2.3

(9.0)

73.9

55.7

18.2

3,136.1

470.6

3,606.7

5.2

132.3

3.1

(23.0)

5.9

(5.2)

(3.3)

109.8

40.4

69.4

3,047.3

451.5

3,498.8

12.6

97.8

4.6

(32.3)

0.2

(6.9)

63.4

25.1

38.3

11.2

(43.3)

(21.7)

Net income

29.4

26.1

16.6

Net income (loss) per common share

Basic:

Continuing operations

Discontinued operations

Diluted:

Continuing operations

Discontinued operations

See accompanying notes to consolidated financial statements.

0.34

0.21

0.55

0.34

0.21

0.55

1.31

(0.83)

0.48

1.30

(0.82)

0.48

0.74

(0.43)

0.31

0.73

(0.42)

0.31

The Brink’s Company

THE BRINK’S COMPANY
and subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

2003 ANNUAL REPORT

(In millions)

Net income

Other comprehensive income (loss):

Minimum pension liability adjustments:

Adjustment to minimum pension liability

Tax benefit (expense) related to minimum pension liability adjustment

Minimum pension liability adjustments, net of tax

Foreign currency:

Translation adjustments

Reclassification adjustment for losses included in net income

Foreign currency translation adjustments

Years Ended December 31,
2002

2003

2001

29.4

26.1

16.6

27.1

(12.0)

15.1

47.0

0.9

47.9

(210.8)

80.1

(130.7)

8.1

(9.9)

3.4

(6.5)

(28.4)

0.5

(27.9)

Cash flow hedges:

Unrealized net gains (losses) on cash flow hedges

2.4

(4.2)

2.4

Tax benefit (expense) related to unrealized net gains (losses)

on cash flow hedges

Reclassification adjustment for net losses

realized in net income

Tax benefit related to net losses

realized in net income

Unrealized net gains (losses) on cash flow hedges, net of tax

Marketable securities:

Unrealized net gains on marketable securities

Tax expense related to unrealized net gains on

(0.7)

5.2

(1.6)

5.3

1.3

3.5

(1.1)

(0.5)

(1.0)

3.9

(1.4)

3.9

4.4

0.6

3.5

marketable securities

(1.5)

(0.2)

(1.2)

Reclassification adjustment for net losses (gains)

realized in net income

0.2

(0.8)

(4.0)

Tax expense (benefit) related to net losses (gains)

realized in net income

(0.1)

0.2

1.4

Unrealized net gains (losses) on marketable securities,

net of tax

Other comprehensive income (loss)

3.0

71.3

(0.2)

(0.3)

(123.3)

(30.8)

Comprehensive income (loss)

$ 100.7

(97.2)

(14.2)

See accompanying notes to consolidated financial statements.

The Brink’s Company

2003 ANNUAL REPORT

THE BRINK’S COMPANY
and subsidiaries

Consolidated Statements of Shareholders’ Equity

Years Ended December 31, 2003, 2002 and 2001

(In millions)

Capital
in Excess

Employee

Accumulated
Other

Preferred Common of Par Retained Benefits Comprehensive

Stock

Value

Earnings

Trust

Loss

Total

Balance as of December 31, 2000

0.2

51.8

348.8

182.6

(25.5)

(82.1)

475.8

Net income

Other comprehensive loss

Dividends:

Common stock ($0.10 per share)

Preferred stock ($31.25 per share)

Employee benefits trust:

Shares issued to trust

Remeasurement

Shares used for employee benefit programs

Tax benefit of stock options exercised

Other

2.5

51.6

2.4

(2.7)

0.1

(0.1)

16.6

(5.1)

(0.7)

(0.1)

(54.1)

(2.4)

23.1

(30.8)

16.6

(30.8)

(5.1)

(0.7)

20.4

0.1

(0.2)

Balance as of December 31, 2001

0.2

54.3

400.1

193.3

(58.9)

(112.9)

476.1

Net income

Other comprehensive loss

Dividends:

Common stock ($0.10 per share)

Preferred stock ($31.25 per share)

Repurchase shares of:

Common stock

Preferred stock

Employee benefits trust:

Remeasurement

Shares used for employee benefit programs

Tax benefit of stock options exercised

Balance as of December 31, 2002

Net income

Other comprehensive income

Common stock dividends ($0.10 per share)

Employee benefits trust:

Remeasurement

Shares used for employee benefit programs

Tax benefit of stock options exercised

Balance as of December 31, 2003

(0.2)

(0.3)

(10.0)

(5.3)

(1.7)

0.2

26.1

(5.2)

(0.5)

(0.6)

5.3

20.6

26.1

(123.3)

(5.2)

(0.5)

(0.3)

(10.8)

18.9

0.2

54.3

383.0

213.1

(33.0)

(236.2)

381.2

(0.1)

0.2

29.4

(5.3)

0.1

18.9

71.3

29.4

71.3

(5.3)

18.8

0.2

54.3

383.0

237.2

(14.0)

(164.9)

495.6

See accompanying notes to consolidated financial statements.

The Brink’s Company

THE BRINK’S COMPANY
and subsidiaries

Consolidated Statements of Cash Flows

2003 ANNUAL REPORT

(In millions)

Cash flows from operating activities:

Net income
Adjustments to reconcile net income to net cash provided by
operating activities:

(Income) loss from discontinued operations, net of tax

Depreciation and amortization

Impairment charges from subscriber disconnects

Amortization of deferred revenue

Impairment of other long-lived assets
Aircraft heavy maintenance expense
Deferred income taxes
Provision (credit) for uncollectible accounts receivable
Other operating, net
Postretirement benefit funding (more) less than expense:

Pension
Other than pension

Change in operating assets and liabilities, net of effects

of acquisitions:
Accounts receivable
Accounts payable and accrued liabilities
Deferred subscriber acquisition cost
Deferred revenue from new subscribers
Other, net

Discontinued operations, net

Net cash provided by operating activities

Cash flows from investing activities:

Capital expenditures
Aircraft heavy maintenance expenditures
Cash proceeds from:
Disposal of former natural resource interests
Monetization of notes receivable and royalty agreement

related to sale of former coal operations
Disposal of other property and equipment
Disposal of other assets and investments
Acquisitions
Contributions to Voluntary Employees’ Beneficiary Association trust
Other, net
Discontinued operations, net

Net cash used by investing activities

Cash flows from financing activities:

Long-term debt:
Additions
Repayments
Short-term borrowings (repayments), net
Repurchase of stock
Dividends
Other, net

Net cash used by financing activities
Effect of exchange rate changes on cash
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

See accompanying notes to consolidated financial statements.

Years Ended December 31,
2002

2003

2001

29.4

26.1

16.6

(11.2)
168.0
34.3
(25.0)
1.3
21.3
30.2
(1.1)
3.5

4.6
9.5

12.5
(6.8)
(18.4)
28.2
1.3
19.2
300.8

43.3
149.9
32.3
(23.9)
15.8
30.6
(0.5)
3.2
22.9

(23.8)
0.7

(14.6)
19.1
(17.7)
27.1
7.2
(56.4)
241.3

21.7
156.2
33.8
(23.9)
1.4
32.4
(5.8)
11.9
13.1

8.5
0.9

41.9
(23.4)
(14.9)
27.0
3.6
19.1
320.1

(202.7)
(23.9)

(193.4)
(31.0)

(185.8)
(15.5)

119.4

42.3

26.0
18.7
-
(8.1)
(82.0)
(0.8)
(8.8)
(162.2)

81.7
(185.4)
(15.1)
-
(5.3)
1.1
(123.0)
10.8
26.4
102.3
$ 128.7

-
5.3
-
(0.1)
-
(0.9)
(30.6)
(208.4)

294.7
(304.1)
9.1
(11.1)
(5.7)
0.4
(16.7)
(0.6)
15.6
86.7
102.3

-
1.9
7.3
(8.4)
-
(6.3)
(18.3)
(225.1)

107.7
(185.8)
(23.0)
-
(5.8)
5.2
(101.7)
(4.4)
(11.1)
97.8
86.7

The Brink’s Company

2003 ANNUAL REPORT

THE BRINK’S COMPANY
and subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The Brink’s Company (along with its subsidiaries, the “Company”) has three operating segments within its
“Business and Security Services” businesses:

• Brink’s, Incorporated (“Brink’s”)
• Brink’s Home Security, Inc. (“BHS”)
• BAX Global Inc. (“BAX Global”)

During 2003 and 2002, the Company sold essentially all of its natural resource businesses and interests, and
the results of these operations have been reclassified to discontinued operations.

In May 2003, the Company’s shareholders approved a proposal to change the Company’s name to “The Brink’s
Company.” The Company’s shares now trade on the New York Stock Exchange under the symbol “BCO.” The
Company’s shares previously traded on the New York Stock Exchange under the symbol “PZB.”

Principles of Consolidation

The consolidated financial statements include the accounts of The Brink’s Company and the subsidiaries it
controls, including all subsidiaries that are majority owned. The Company’s interest in 20% to 50% owned
companies are accounted for using the equity method (“equity affiliates”), unless control exists, in which case
consolidation accounting is used. Control is determined based on ownership rights or, when applicable, based
on whether the Company is considered the primary beneficiary of a variable interest entity. Undistributed
earnings of equity affiliates included in consolidated retained earnings approximated $33 million at December
31, 2003. All material intercompany items and transactions have been eliminated in consolidation.

Revenue Recognition

Brink’s – Revenue is recognized when services are performed. Services related to armored car transportation,
ATM servicing, cash logistics and coin sorting and wrapping are performed in accordance with the terms of
customer contracts, which contract prices are fixed and determinable. Brink’s assesses the customer’s ability to
meet the terms of the contract, including payment terms, before entering into contracts.

BHS - Monitoring revenues are recognized monthly as services are provided pursuant to the terms of customer
contracts, which contract prices are fixed and determinable. BHS assesses the customer’s ability to meet the
terms of the contract, including payment terms, before entering into contracts. Amounts collected in advance
from customers for monitoring and related services are deferred and recognized as income over the applicable
monitoring period, which is generally one year or less. Nonrefundable installation revenues and a portion of the
related direct costs of acquiring new subscribers (primarily sales commissions) are deferred and recognized
over the estimated term of the subscriber relationship, which is generally 15 years. When an installation is
identified for disconnection, any unamortized deferred revenues and deferred costs related to that installation
are recognized at that time.

The Brink’s Company

2003 ANNUAL REPORT

BAX Global - Revenues related to transportation services are recognized, together with related variable
transportation costs, on the date shipments depart from facilities en route to destination locations. BAX Global
and its customer agree to the terms of the shipment, including pricing, prior to shipment. Pricing terms are fixed
and determinable, and BAX Global only agrees to shipments when it believes that collectibility is reasonably
assured.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits and investments with original maturities of
three months or less.

Trade Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for
doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s
existing accounts receivable. The Company determines the allowance based on historical write-off experience
by industry and customer specific data. The Company reviews its allowance for doubtful accounts quarterly.
Account balances are charged off against the allowance after all means of collection have been exhausted and
the potential for recovery is considered remote. The Company has an accounts receivable securitization
program (described in note 14), which is accounted for as a sale under Statement of Financial Accounting
Standards (“SFAS”) No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities.”

Property and Equipment

Property and equipment is accounted for at cost. Depreciation is calculated principally on the straight-line
method. Amortization of capitalized software is calculated principally on the straight-line method.

Estimated Useful Lives

Buildings

Building leasehold improvements

Home security systems

Vehicles

Aircraft and related assets

Other machinery and equipment

Machinery and equipment leasehold improvements

Capitalized software

Years

10 to 40

1 to 25

3 to 12

1 to 5

3 to 20

1 to 10

3 to 7

Expenditures for routine maintenance and repairs on property and equipment, including aircraft, are charged to
expense. Major renewals, betterments and modifications are capitalized and amortized over the lesser of the
remaining life of the asset or, if applicable, lease term. Scheduled airframe and periodic engine overhaul costs
are capitalized when incurred and amortized over the flying time to the next scheduled maintenance date.

The Brink’s Company

2003 ANNUAL REPORT

BHS retains ownership of most home security systems installed at subscriber locations. Costs for those systems
are capitalized and depreciated over the estimated lives of the assets. Costs capitalized as part of home security
systems include equipment and materials used in the installation process, direct labor required to install the
equipment at customer sites, and other costs associated with the installation process. These other costs include
the cost of vehicles used for installation purposes and the portion of telecommunication, facilities and
administrative costs incurred primarily at BHS’ branches that are associated with the installation process. In
2003, direct labor and other costs represented approximately 71% of the amounts capitalized, while equipment
and materials represented approximately 29% of amounts capitalized. In addition to regular straight-line
depreciation expense each period, the Company charges to expense the carrying value of security systems
estimated to be permanently disconnected based on each period’s actual disconnects and historical
reconnection experience.

The costs of computer software developed or obtained for internal use are accounted for in accordance with
AICPA Statement of Position (“SOP”) No. 98-1, “Accounting for the Costs of Computer Software Developed or
Obtained for Internal Use.” SOP No. 98-1 requires that certain costs related to the development or purchase of
internal-use software be capitalized and amortized over the estimated useful life of the software. Costs that are
capitalized include external direct costs of materials and services to develop or obtain the software, and internal
costs for employees directly associated with a software development project, including compensation and
employee benefits. Amortization of capitalized software costs was $20.2 million in 2003, $19.8 million in 2002
and $15.1 million in 2001.

Goodwill

Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable
intangible net assets of businesses acquired. Prior to the adoption of SFAS No. 142, “Goodwill and Other
Intangible Assets” in January 2002, goodwill was amortized over the estimated period of benefit on a straight-
line basis up to a maximum of 40 years. Since the adoption of SFAS No. 142, amortization of goodwill has
been discontinued; goodwill amortization in 2001 was approximately $9.5 million.

A reconciliation of net income and net income per share for the year ended December 31, 2001 as reported in
the consolidated statements of operations, to net income and net income per share, as adjusted to exclude
goodwill amortization expense (net of tax effects), is presented below:

(In millions, except per share amounts)

Reported net income

Goodwill amortization, net of tax effects

Net income as adjusted

Reported diluted net income per share

Goodwill amortization, net of tax effects

Diluted net income per share as adjusted

Years Ended December 31,

2003

2002

2001

29.4

0.55

26.1

0.48

16.6

8.3

24.9

0.31

0.16

0.47

Impairment of Long-Lived Assets

In 2002, the Company adopted SFAS No. 142 as its accounting policy to review and account for goodwill. In
2002, the Company also adopted SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived
Assets” as its policy to review and account for the impairment of long-lived assets other than goodwill, including
property and equipment and certain other noncurrent assets. Prior to the adoption of SFAS Nos. 142 and 144,
long-lived assets were reviewed for impairment under the provisions of SFAS No. 121, “Accounting for the
Impairment of Long-lived Assets and for Long-lived Assets to be Disposed Of.”

The Brink’s Company

2003 ANNUAL REPORT

Under SFAS No. 142, goodwill acquired in a purchase business combination and determined to have an
indefinite useful life is not amortized, but instead is tested for impairment at least annually. The Company
completed goodwill impairment tests during 2002 and 2003 with no impairment charges required. The
Company based its estimate of fair value during the 2003 annual impairment review of goodwill at BAX Global
on discounted projections of BAX Global’s future cash flows. If actual cash flows are significantly lower than
projected cash flows, future impairment tests may result in an impairment of a portion or all of BAX Global’s
goodwill ($166 million at December 31, 2003).

Long-lived assets besides goodwill are reviewed for impairment when circumstances indicate the carrying value
of an asset may not be recoverable. For long-lived assets other than goodwill that are to be held and used, an
impairment is recognized when the estimated total undiscounted cash flow associated with the asset or group of
assets is less than carrying value. If impairment exists, an adjustment is made to write the asset down to its fair
value, and a loss is recorded as the difference between the carrying value and fair value. Assets held for sale
are carried at the lower of carrying value or fair value less cost to sell. Fair values are determined based on
quoted market values, discounted cash flows or internal and external appraisals, as applicable. See note 9.

Investments Held by VEBA Trust

The Company has a VEBA designed to tax efficiently fund certain retiree medical liabilities, primarily for retired
coal miners and their dependents. The Company may not use the VEBA’s assets for other corporate purposes.
Through December 31, 2003, the Company accounted for the investments held by its VEBA as marketable
securities in accordance with SFAS No. 115, “Accounting for Certain Investments in Debt and Equity
Securities.” Investments held by the VEBA were classified as available-for-sale and reported at fair value.
Unrealized gains and losses were recognized in other comprehensive income (loss) and realized gains and
losses were recognized in earnings. Realized gains and losses were computed based on the average cost
method.

Subsequent to December 31, 2003, the Company restricted the use of the VEBA’s assets to be available only to
pay for coal-related postretirement benefits other than pensions. The Company accounts for these benefits
under SFAS No. 106, “Employers’ Accounting for Postretirement Benefits Other Than Pensions.” The Company
will begin reflecting the VEBA as a plan asset, as required by SFAS No. 106, in its 2004 consolidated financial
statements.

Equity-Based Compensation

The Company accounts for its equity-based compensation plans using the intrinsic value method prescribed in
Accounting Principles Board Opinion (“APB”) No. 25, “Accounting for Stock Issued to Employees” and related
interpretations. Accordingly, since options are granted with an exercise price equal to the market price of the
stock on the date of grant, the Company has not recognized any compensation expense related to its stock
option plans. See note 16.

The Brink’s Company

2003 ANNUAL REPORT

Had compensation costs for the Company’s stock option plans been determined based on the fair value of
awards at the grant dates consistent with the optional recognition provision of SFAS No. 123, “Accounting for
Stock Based Compensation,” net income and net income per share would have been the pro forma amounts
indicated below:

(In millions, except per share amounts)

2003

2002

2001

Years Ended December 31,

Net income

As reported

Less equity-based compensation expense determined

under fair value method, net of related tax effects

Pro forma

Net income per share

Basic, as reported

Basic, pro forma

Diluted, as reported

Diluted, pro forma

29.4

26.1

16.6

(4.7)

24.7

0.55

0.47

0.55

0.46

(4.4)

21.7

0.48

0.40

0.48

0.39

(5.0)

11.6

0.31

0.21

0.31

0.21

The fair value of each stock option grant is estimated at the time of the grant using the Black-Scholes option-
pricing model. Pro forma net income and net income per share disclosures are computed by amortizing the
estimated fair value of the grants over vesting periods.

The assumptions used and the resulting weighted-average grant-date estimates of fair value for options granted
are as follows:

Options granted

In millions

Weighted-average exercise price

Assumptions

Expected dividend yield

Expected volatility

Risk-free interest rate

Expected term (in years)

Fair value estimates

In millions

Per share

Years Ended December 31,

2003

2002

2001

0.6

15.24

1.0

21.50

1.2

21.03

0.5%

37%

2.3%

4.0

3.0

4.69

0.5%

37%

3.7%

4.0

6.6

6.97

0.5%

38%

4.8%

4.6

9.6

8.10

The Brink’s Company

2003 ANNUAL REPORT

Postretirement Benefits Other Than Pensions

Postretirement benefits other than pensions, except for those established pursuant to the Coal Industry Retiree
Health Benefit Act of 1992 (the “Health Benefit Act”), are accounted for in accordance with SFAS No. 106,
“Employers’ Accounting for Postretirement Benefits Other Than Pensions,” which requires employers to accrue
the cost of retirement benefits during the employees’ service with the Company. Actuarial gains and losses are
deferred. The portion of the deferred gains or losses that exceeds 10% of the accumulated postretirement
benefit obligation at the beginning of the year is amortized into earnings generally over the average remaining
life expectancy for inactive participants. Postretirement benefit obligations established by the Health Benefit Act
are recorded as a liability when they are probable and estimable in accordance with Emerging Issues Task
Force (“EITF”) No. 92-13, “Accounting for Estimated Payments in Connection with the Coal Industry Retiree
Health Benefit Act of 1992.”

Income Taxes

Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events
that have been reported in different years for financial statement purposes than tax purposes. Deferred tax
assets and liabilities are determined based on the difference between the financial statement and tax bases of
assets and liabilities using enacted tax rates in effect for the year in which these items are expected to reverse.

Foreign Currency Translation

The Company’s consolidated financial statements are reported in U.S. dollars. A substantial amount of the
Company’s business is transacted in other currencies due to the large number of countries in which the
Company operates. In addition, the Company’s foreign subsidiaries maintain their records primarily in the
currency of the country within which they operate. Accordingly, income, expense and balance sheet values
must be translated into U.S. dollars. The value of assets and liabilities of foreign subsidiaries are translated into
U.S. dollars using rates of exchange at the balance sheet date and resulting cumulative translation adjustments
are recorded as a separate component of accumulated other comprehensive loss. Revenues and expenses are
translated at rates of exchange in effect during the year. Transaction gains and losses and translation
adjustments relating to subsidiaries in countries with highly inflationary economies are included in net income.

Derivative Instruments and Hedging Activities

All derivative instruments are recorded in the consolidated balance sheet at fair value. If the derivative has been
designated as a cash flow hedge, changes in the fair value are recognized in other comprehensive income
(loss) until the hedged transaction is recognized in earnings.

Former Coal Operations

The following accounting policies of the Company’s former coal operations were in effect through December
2002, at which point the Company completed its exit of the coal business.

Revenue Recognition
Coal sales were generally recognized when coal was loaded onto transportation vehicles for shipment to
customers. For domestic sales, this generally occurred when coal was loaded onto railcars at mine locations.
For export sales, this generally occurred when coal was loaded onto marine vessels at terminal facilities. Coal
sales are included as a component of the Company’s income (loss) from discontinued operations.

Property, Plant and Equipment
Depletion of bituminous coal lands was provided on the basis of tonnage mined in relation to the estimated total
of recoverable tonnage in the ground and are included as a component of the Company's income (loss) from
discontinued operations.

The Brink’s Company

2003 ANNUAL REPORT

Mine development costs were capitalized and amortized over the estimated useful life of the mine. These costs
included expenses incurred for site preparation and development at the mines during the development stage. A
mine was considered under development until management determined that all planned production units were
in place and the mine was available for commercial operation and the mining of coal. The amortization is
included as a component of the Company's income (loss) from discontinued operations.

Reclamation Costs
In 2003, the Company accounted for its remaining reclamation liabilities under SFAS No. 143, “Accounting for
Asset Retirement Obligations.” Prior to this, expenditures relating to environmental regulatory requirements and
reclamation costs undertaken during mine operations were expensed as incurred. Estimated site restoration
and post closure reclamation costs were expensed using the units of production method over the estimated
recoverable tonnage at each mine. In each case, these charges were included as a component of the income
(loss) from discontinued operations in the Company's consolidated statements of operations. Accrued
reclamation costs are subject to review by management on a regular basis and are revised when appropriate for
changes in future estimated costs and/or regulatory requirements. Any revisions result in the recording of a
charge or benefit. Accrued reclamation costs for mines are included in either current or noncurrent liabilities in
the Company’s consolidated balance sheets.

Inventories
Inventories were stated at cost (determined under the first-in, first-out or average cost method) or market,
whichever was lower.

Use of Estimates

In accordance with accounting principles generally accepted in the U.S., management of the Company has
made a number of estimates and assumptions relating to the reporting of assets and liabilities and the
disclosure of contingent assets and liabilities to prepare these consolidated financial statements. Actual results
could differ materially from those estimates. The most significant estimates used by management are related to
goodwill and long-lived assets, heavy maintenance expense, pension and other postretirement benefit
obligations, withdrawal liability from United Mine Workers of America pension plans, and deferred tax assets.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year’s financial statement
presentation.

Recent Accounting Pronouncements

The Brink’s Company

2003 ANNUAL REPORT

NOTE 2 - SEGMENT INFORMATION

The Company conducts business in three different operating segments: Brink’s, BHS, and BAX Global
(collectively “Business and Security Services”). These reportable segments are identified by the Company
based on how resources are allocated and how operating decisions are made. Management evaluates
performance and allocates resources based on operating profit or loss excluding corporate allocations.

Brink’s offers services globally including armored car transportation, automated teller machine (“ATM”)
replenishment and servicing, currency and deposit processing including its “Cash Logistics” operations, coin
sorting and wrapping, arranging the secure air transportation of valuables (“Global Services”) and the deploying
and servicing of safes and safe control devices, including its patented CompuSafe service. Brink’s operates in
approximately 50 countries.

BHS offers monitored security services in North America primarily for owner-occupied, single-family residences.
To a lesser extent, BHS offers security services for commercial properties. BHS typically installs and owns the
on-site security systems, and charges fees to monitor and service the systems.

BAX Global provides transportation and supply chain management services on a global basis, specializing in
the heavy freight market for business-to-business shipping. In North America, BAX Global provides overnight,
second day and deferred freight delivery as well as supply chain management services. Internationally, BAX
Global provides air and ocean delivery services, freight forwarding services, supply chain management services
and international customs brokerage services. BAX Global has approximately 100 stations in the U.S., 160
stations in international locations and has agency agreements with approximately 240 agent locations.

The Brink’s Company

2003 ANNUAL REPORT

The Company has no single customer that represents more than 10% of its total revenue.

(In millions)

2003

2002

2001

2003

2002

2001

2003

2002

2001

Assets

Revenues

Operating Profit (Loss)

December 31,

Years Ended December 31,

Business Segments

Brink’s

BHS

BAX Global

Business and

$ 945.2

410.9

763.1

842.8

387.5

741.6

801.7 $ 1,689.0

1,579.9

1,536.3

$ 112.5

322.9

310.4

282.4

257.6

696.8

1,999.2

1,871.5

1,790.1

71.2

3.0

96.1

60.9

17.6

92.0

54.9

(27.6)

Security Services

2,119.2

1,971.9

1,821.4

3,998.6

3,733.8

3,584.0

186.7

174.6

119.3

Former operations:

Net deferred tax

assets

Other (a)

Gain on sale of

equity interest

Corporate:

VEBA

Other (b)

228.0

50.4

238.7

158.3

244.4

223.6

105.2

45.8

18.2

72.8

16.6

117.2

(69.5)

(19.2)

10.4

(27.8)

(23.1)

(21.5)

$ 2,548.6

2,459.9

2,423.2 $ 3,998.6

3,733.8

3,584.0

$ 99.8

132.3

97.8

(a) Former coal operations operating loss in 2003 represents ongoing expenses of former coal operations; these types of expenses were

classified as discontinued operations in 2002 and 2001. Operating loss in 2002 represents impairment and other charges.

(b)

Includes $87 million of prepaid pension assets in 2001.

(In millions)

2003

2002

2001

2003

2002

2001

Capital Expenditures

Depreciation and Amortization

Years Ended December 31,

Business Segments

Brink’s

BHS

BAX Global (a)

Corporate

$ 80.9

98.0

23.6

0.2

79.3

86.9

27.1

0.1

71.3

81.3

33.1

0.1

$ 70.6

40.1

47.0

2.5

61.3

37.3

44.4

0.3

60.1

31.0

49.4

0.4

Property and equipment

202.7

193.4

185.8

160.2

143.3

140.9

Amortization of BHS deferred subscriber

acquisition costs

Goodwill amortization:

Brink’s

BAX Global

7.8

6.6

5.8

2.1

7.4

9.5

$ 202.7

193.4

185.8

$ 168.0

149.9

156.2

(a) Excludes aircraft heavy maintenance expenditures and amortization.

The Brink’s Company

(In millions)

Other BHS Information

2003 ANNUAL REPORT

Years Ended December 31

2003

2002

2001

Impairment charges from subscriber disconnects

Amortization of deferred revenue

Deferred subscriber acquisition costs (current year payments)

Deferred revenue from new subscribers (current year receipts)

34.3

(25.0)

(18.4)

28.2

32.3

(23.9)

(17.7)

27.1

33.8

(23.9)

(14.9)

27.0

Long-Lived Assets

Revenues

Operating Profit (Loss)

(In millions)

2003

2002

2001

2003

2002

2001

December 31,

Years Ended December 31,

Years Ended December 31,
2001
2002
2003

Geographic

International:

Operations:

France

Other

Gain on sale of

$ 156.4

278.8

134.7

241.3

102.7

248.3

$ 420.7

376.7

327.0

$ 21.6

1,741.6

1,546.8

1,472.6

88.5

21.3

78.7

25.3

63.8

equity interest

10.4

Subtotal

435.2

376.0

351.0

2,162.3

1,923.5

1,799.6

120.5

100.0

89.1

United States:

Operations

Former operations

Corporate

767.9

6.4

0.7

751.2

53.6

0.8

743.0

133.0

1.1

1,836.3

1,810.3

1,784.4

76.6

(69.5)

(27.8)

74.6

(19.2)

(23.1)

Subtotal

775.0

805.6

877.1

1,836.3

1,810.3

1,784.7

(20.7)

32.3

$ 1,210.2

1,181.6

1,228.1

$ 3,998.6

3,733.8

3,584.0

$ 99.8

132.3

30.2

(21.5)

8.7

97.8

Revenues are recorded in the country where the service is initiated/performed with the exception of most of
BAX Global’s export freight service where revenue is shared among the origin and destination countries. The
Company’s net assets in non-U.S. subsidiaries were $472.4 million at December 31, 2003 and $377.8 million at
December 31, 2002.

(In millions)

Investments in unconsolidated equity affiliates

Brink’s

Other

Share of earnings of unconsolidated equity affiliates

Brink’s

Other

December 31,

2003

2002

2001

23.1

6.9

30.0

1.6

(1.3)

0.3

23.8

11.7

35.5

1.3

(0.1)

1.2

26.0

10.6

36.6

5.5

(2.1)

3.4

The Brink’s Company

2003 ANNUAL REPORT

NOTE 3 - EARNINGS PER SHARE

The following is a reconciliation between the calculations of basic and diluted income from continuing operations
per common share:

(In millions)

Numerator

Years Ended December 31,

2003

2002

2001

Income from continuing operations

Preferred stock dividends (a)

Premium on repurchase of preferred stock (a)

18.2

Numerator for basic and diluted income per share from continuing operations

18.2

Denominator

Basic weighted average common shares outstanding

Effect of dilutive stock options

Diluted weighted average common shares outstanding

Antidilutive stock options excluded from computation

(a) See “Series C Convertible Preferred Stock” in note 17.

53.1

0.1

53.2

3.1

69.4

(0.5)

(0.6)

68.3

52.1

0.3

52.4

1.2

38.3

(0.7)

37.6

51.2

0.2

51.4

2.0

Unallocated shares of the Company’s common stock held by The Brink’s Company Employee Benefits Trust
(the “Trust”) are treated as treasury shares for earnings per share purposes. Accordingly, these shares are
excluded from earnings per share calculations. The number of shares held by the Trust at year end were 0.6
million shares in 2003, 1.8 million shares in 2002 and 2.7 million shares in 2001.

NOTE 4 – EMPLOYEE AND RETIREE BENEFITS

The employee benefit plans and other liabilities described below cover employees and retirees of both the
Company’s continuing operating units and former coal operations. Accordingly, a portion of these benefit
expenses have been included in the results of discontinued operations for the years presented. The
measurement date for all plans is December 31.

Pension Plans

The Company has noncontributory defined benefit pension plans covering substantially all U.S. non-union
employees who meet certain minimum requirements. The Company also has other contributory and
noncontributory defined benefit plans for eligible non-U.S. employees. Benefits under most of the plans are
based on salary (including commissions, bonuses, overtime and premium pay) and years of service. The
Company’s policy is to fund at least the minimum actuarially determined amounts required by applicable
regulations.

The Brink’s Company

2003 ANNUAL REPORT

The weighted average assumptions used in determining the net pension cost and benefit obligations for the
Company’s pension plans were as follows:

Discount rate:

Pension cost

Benefit obligation at year end

Expected long-term rate of return on assets -

U.S. Plans

Non-U.S. Plans

2003

2002

2001

2003

2002

2001

6.75%

6.25%

7.25%

6.75%

7.50%

7.25%

5.86%

5.55%

6.51%

6.68%

5.86%

6.51%

Pension cost

8.75%

10.00%

6.74%

7.78%

8.33%

Average rate of increase in salaries (a):

Pension cost

Benefit obligation at year end

5.04%

5.03%

5.04%

5.03%

5.04%

3.40%

3.09%

3.61%

3.67%

3.40%

3.61%

(a) Salary scale assumptions are determined through historical experience and vary by age and industry.

The net pension cost for 2003, 2002 and 2001 for all pension plans is as follows:

(in millions)

U.S. Plans

Non-U.S. Plans

Total

Years Ended December 31,

2003

2002

2001

2003

2002

2001

2003

2002

2001

Service cost

$ 23.0

25.0

21.2

$ 7.6

5.5

4.8

$ 30.6

30.5

26.0

Interest cost on projected

benefit obligation (“PBO”)

38.6

36.0

32.7

7.8

6.3

5.8

46.4

42.3

38.5

Return on assets - expected

(49.1)

(52.4)

(50.1)

(7.4)

(7.8)

(8.5)

(56.5)

(60.2)

(58.6)

Other amortization, net

Net pension cost

7.4

$ 19.9

0.9

9.5

0.1

3.9

3.1

$ 11.1

0.5

4.5

0.4

2.5

10.5

1.4

$ 31.0

14.0

0.5

6.4

In June 2003, the Company amended the benefit formula for its U.S. pension plan which resulted in a $4.1
million reduction in service cost in 2003 from what it would have otherwise been. This change had no effect on
benefits earned for service prior to June 2003.

The Brink’s Company

2003 ANNUAL REPORT

Reconciliations of the PBO, plan assets, funded status and net pension assets at December 31, 2003 and 2002
for all of the Company’s pension plans are as follows:

(In millions)

U.S. Plans

Non-U.S. Plans

Total

Years Ended December 31,

2003

2002

2003

2002

2003

2002

PBO at beginning of year

$ 589.1

496.7

126.6

98.3

715.7

595.0

Service cost

Interest cost

Plan participants’ contributions

Benefits paid

Actuarial loss

Foreign currency exchange rate changes

23.0

38.6

(23.4)

45.6

25.0

36.0

(21.2)

52.6

PBO at end of year

$ 672.9

589.1

Fair value of plan assets at beginning

of year

Return on assets – actual

Plan participants’ contributions

Employer contributions

Benefits paid

Foreign currency exchange rate changes

$ 431.2

113.7

20.4

(23.4)

459.1

(42.3)

35.6

(21.2)

Fair value of plan assets at end of year

$ 541.9

431.2

Funded status

Unrecognized experience loss

Unrecognized prior service cost

$ (131.0)

234.7

0.3

(157.9)

261.0

0.4

7.6

7.8

2.2

(4.2)

9.2

23.2

172.4

98.7

14.8

2.2

6.0

(4.2)

18.0

135.5

(36.9)

49.0

1.3

Net pension assets

$ 104.0

103.5

13.4

5.5

6.3

1.6

(3.4)

7.5

10.8

30.6

46.4

2.2

30.5

42.3

1.6

(27.6)

(24.6)

54.8

23.2

60.1

10.8

126.6

845.3

715.7

95.2

(7.5)

1.6

4.4

(3.4)

8.4

529.9

128.5

2.2

26.4

(27.6)

18.0

554.3

(49.8)

1.6

40.0

(24.6)

8.4

98.7

677.4

529.9

(27.9)

(167.9)

(185.8)

44.7

1.2

18.0

283.7

1.6

117.4

305.7

1.6

121.5

Included in:

Prepaid pension assets

Accrued pension cost:

Current, included in accrued liabilities

Noncurrent

Accumulated other comprehensive loss

Net pension assets

(0.4)

(56.7)

161.1

$ 104.0

(97.8)

201.3

103.5

15.8

23.8

15.8

23.8

(5.0)

(29.9)

32.5

13.4

(0.4)

(24.8)

19.4

18.0

(5.4)

(0.4)

(86.6)

(122.6)

193.6

117.4

220.7

121.5

Information comparing plan assets to plan obligations as of December 31, 2003 and 2002 are aggregated
below. The accumulated benefit obligation (“ABO”) differs from the PBO in that the ABO includes no
assumption about future compensation levels.

(In millions)

December 31,

PBO

ABO

Fair value of plan assets

ABO Greater

Plan Assets

Than Plan Assets

Greater Than ABO

Total

2003

2002

2003

2002

2003

2002

801.7

716.4

632.2

683.0

610.2

495.8

43.6

37.2

45.2

32.7

26.0

34.1

845.3

753.6

677.4

715.7

636.2

529.9

The Brink’s Company

The Company’s unrecognized experience loss increased in 2002 primarily due to lower discount rate
assumptions (which increased the ABO and PBO) and lower than expected returns on plan assets. The
unrecognized experience loss at the end of 2003 was slightly lower than the prior year as actuarial losses
related to lower discount rates were offset by better than expected returns on plan assets.

The Company’s U.S. plan asset allocation at December 31, 2003 and 2002 by asset category is as follows:

2003 ANNUAL REPORT

Equity securities

Debt securities

Other

Total

December 31,

2003

73%

26%

2002

70%

29%

100%

The Company’s primary U.S. defined benefit pension plan had assets at December 31, 2003 of approximately
$542 million. This pension plan’s assets are invested primarily using actively managed accounts with asset
allocation targets of 47.5% domestic equities and 22.5% international equities, which include a broad array of
market cap sizes and investment styles, and 30% fixed income securities. The Company’s policy does not
permit certain investments, including investments in The Brink’s Company common stock, unless part of a
commingled fund, or derivative instruments unless used for hedging purposes. Fixed-income investments must
have an investment grade rating at the time of purchase. The plan rebalances its assets on a quarterly basis if
actual allocations of assets exceed predetermined limits. Among other factors, the performance of asset groups
and investment managers will affect the long-term rate of return.

There are limits to the amount of benefits which can be paid to participants from a U.S. qualified pension plan.
The Company maintains an unfunded nonqualified plan to pay benefits for those eligible current and former
employees in the U.S. whose benefits exceed the regulatory limits.

Multi-employer Pension Plans

The Company participates in the United Mine Workers of America (“UMWA”) 1950 and 1974 pension plans, but
expects to ultimately withdraw from these plans. Upon withdrawal from the plans, the Company must pay the
plans a portion of any underfunded liability of the plans, as determined by the plan agreements. In 2001, the
Company recorded estimated withdrawal liabilities for coal-related multi-employer pension plans of $8.2 million
associated with its planned exit from the coal business. In 2002, the Company increased the estimated
liabilities by $26.8 million to $35.0 million and in 2003, the Company increased the estimated liabilities by $17.0
million ($14 million in the fourth quarter) to $52.0 million.

The Brink’s Company

2003 ANNUAL REPORT

The Company’s estimate of the obligation in each year is based on the funded status of the multi-employer
plans for the most recent measurement date. The increases in the Company’s estimated liability in 2002 and
2003 are due to increases in the UMWA plans’ unfunded liability. The actual withdrawal liability, if any, is
subject to several factors, including funding and benefit levels of the plans as of annual measurement dates
(June 30 each year) and the date that the Company is determined to have completely withdrawn from the plans.
Accordingly, the ultimate obligation could change materially.

Expense included in continuing operations for multi-employer pension plans (excluding coal-related plans) was
$2.8 million in 2003, $1.8 million in 2002, and $1.2 million in 2001.

Savings Plans

The Company sponsors a 401(k) plan to assist eligible U.S. employees in providing for retirement. Employee
contributions in 2001, 2002 and the first half of 2003 were matched at rates of between 50% to 100% for up to
5% of compensation (subject to certain limitations). In June 2003, the Company modified the match provision of
the plan and employee contributions were matched at a rate of 75% in the last half of 2003. Contribution
expense in continuing operations under the plan aggregated $11.5 million in 2003, $10.9 million in 2002, and
$9.8 million in 2001. Contribution expense included in discontinued operations was $0.1 in 2003, $0.6 million in
2002 and $0.7 million in 2001.

The Company sponsors other defined contribution benefit plans based on hours worked or other measurable
factors. Contributions under all of these plans aggregated $5.0 million in 2003, $3.6 million in 2002, and $3.2
million in 2001.

Postretirement Benefits Other Than Pensions

Summary
The Company has various postretirement benefits other than pensions. The related amounts recorded on the
balance sheets for the last two years are detailed below.

December 31,

(In millions)

Company-sponsored plans

Health Benefit Act

Black Lung

Current, included in accrued liabilities

2003

311.9

197.5

43.7

553.1

(48.9)

Noncurrent

504.2

2002

291.6

174.1

45.4

511.1

(39.4)

471.7

The Brink’s Company

2003 ANNUAL REPORT

Company-Sponsored Plans
The Company provides certain postretirement health care and life insurance benefits (the “Company-sponsored
plans”) for eligible active and retired employees in the U.S. and Canada of the Company’s current and former
businesses, including eligible participants of the former coal operations (the “coal-related” plans). The
components of net periodic postretirement costs related to Company-sponsored plans were as follows:

(In millions)

Coal-related plans

Other plans

Total

Years Ended December 31,

2003

2002

2001

2003

2002

2001

2003

2002

2001

Service cost

0.4

0.2

0.9

0.8

0.7

0.9

1.2

0.9

Interest cost on accumulated

postretirement benefit

obligations (“APBO”)

Amortization of losses

Net periodic postretirement

34.7

14.3

31.7

24.9

9.7

3.7

1.5

0.1

1.4

1.5

36.2

14.4

33.1

26.4

9.7

3.7

costs

$ 49.0

41.8

28.8

2.5

2.2

$ 51.5

44.0

31.0

Reconciliations of the APBO and funded status to the accrued other postretirement benefit cost (the amount
recorded on the balance sheet at the measurement date) for Company-sponsored plans at December 31, 2003
and 2002 are as follows:

(In millions)

Coal-related plans

Other plans

Total

Years Ended December 31,

2003

2002

2003

APBO at beginning of year

518.3

442.0

23.1

Service cost

Interest cost

Benefits paid

Actuarial (gain) loss, net:

Effect of Medicare subsidy

Other

34.7

(30.4)

(45.7)

49.3

0.4

31.7

(28.3)

72.5

0.9

1.5

(2.0)

3.3

APBO at end of year

526.2

518.3

26.8

Funded status

(526.2)

(518.3)

(26.8)

Unrecognized experience (gain) loss

239.8

250.6

Unrecognized prior service cost

0.4

0.9

Accrued other postretirement

2002

21.9

0.8

1.4

(2.3)

1.3

23.1

(23.1)

(0.8)

2003

2002

541.4

463.9

0.9

36.2

1.2

33.1

(32.4)

(30.6)

(45.7)

52.6

553.0

73.8

541.4

(553.0)

(541.4)

240.2

0.9

249.8

benefit cost at end of year

(286.4)

(267.7)

(25.5)

(23.9)

(311.9)

(291.6)

The APBO for each of the plans was determined using the unit credit method and an assumed discount rate as
follows:

Company-sponsored plans

2003

2002

2001

Discount rate:

Postretirement cost

Benefit obligation at year end

6.75%

6.25%

7.25%

6.75%

7.50%

7.25%

The Brink’s Company

2003 ANNUAL REPORT

For Company-sponsored coal-related plans, the assumed health care cost trend rate used in 2003 was 9% for
2004, declining ratably to 5% in 2009 and thereafter (in 2002: 10% for 2003 declining ratably to 5% in 2008 and
thereafter). Other plans provide for fixed-dollar value coverage for eligible participants and, accordingly, are not
adjusted for inflation.

The table below shows the estimated effects of a one percentage point change in the assumed health care cost
trend rates.

(In millions)

Higher (lower):

Effect of Change in

Health Care Trend Rates

Increase 1%

Decrease 1%

Service and interest cost in 2003

APBO at December 31, 2003

4.2

65.6

(3.5)

(54.9)

On December 8, 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”)
was signed into law. The Act introduces a prescription drug benefit under Medicare as well as a federal subsidy
to sponsors of retiree health care benefit plans that provide a benefit that is at least actuarially equivalent to
certain Medicare benefits. Because of the broadness of coverage provided under the Company’s plan, the
Company believes that the plan benefits are at least actuarially equivalent to the Medicare benefits. The
Company reflected the estimated effect of the new legislation in 2003 as a $45.7 million reduction to the
actuarial loss for 2003, as permitted by FASB Staff Position No. 106-1, “Accounting and Disclosure
Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003.” The
estimated value of the projected federal subsidy assumes no changes in participation rates and assumes that
the subsidy is received in the year after claims are paid. The estimated reduction in per capita claim costs for
participants over 65 years old was 12%.

There was no effect on 2003 expense. For 2004, a reduction in net periodic postretirement costs of
approximately $5.8 million is expected. Future guidance from the FASB could result in a material change to this
recognition.

The Company’s unrecognized experience loss decreased in 2003 primarily due to the favorable effect of the
new Medicare subsidy, offset by a lower discount rate used in 2003 to estimate the APBO.

In the first quarter of 2004, the Company restricted the use of the VEBA so that it will be used to only pay
benefits related to the Company’s coal-related postretirement medical plan. Accordingly, under SFAS No. 106,
estimated returns on the VEBA assets will be included in the determination of net periodic postretirement costs.

Health Benefit Act Liabilities

Background
In October 1992, the Coal Industry Retiree Health Benefit Act of 1992 (the “Health Benefit Act”) was enacted as
part of the Energy Policy Act of 1992. The Health Benefit Act established rules for the payment of future health
care benefits for thousands of retired union mine workers and their dependents.

Assigned Beneficiaries. The Health Benefit Act established a trust fund, The United Mine Workers of America
Combined Benefit Fund (the “Combined Fund”), to which “signatory operators” and “related persons”, including
The Brink’s Company and certain of its subsidiaries (collectively, the “Brink’s Companies”), are jointly and
severally liable to pay annual premiums for those beneficiaries directly assigned to a signatory operator and its
related persons, on the basis set forth in the Health Benefit Act.

The Brink’s Company

2003 ANNUAL REPORT

In October 1993 and on an annual basis in subsequent years, the Brink’s Companies have received notices
from the Social Security Administration with regard to the current number of assigned beneficiaries for which the
Brink’s Companies are deemed responsible under the Health Benefit Act.

Unassigned Beneficiaries. In addition, the Health Benefit Act provides that assigned companies, including the
Brink’s Companies, are required to fund, pro rata according to the total number of assigned beneficiaries, a
portion of the health benefits for unassigned beneficiaries if not funded from other designated sources. To date,
almost all of the funding for unassigned beneficiaries has been provided from transfers from the Abandoned
Mine Land Reclamation Fund (the “AML Fund”) or other government sources.

Information and Assumptions Used to Estimate Obligation
The Company’s liability for Health Benefit Act obligations is equal to the undiscounted estimated amount of
future annual premiums the Company expects to pay to the Combined Fund over approximately 70 years. The
Company’s estimated annual premium is generally equal to the total number of beneficiaries (including assigned
beneficiaries and an allocated percentage of the total unassigned beneficiaries) at October 1, the beginning of
the plan year, multiplied by the premium per beneficiary for that year. The Company expects to pay annual
premiums over the next 70 or more years, but it expects these annual premiums to gradually decline over time
as the number of beneficiaries decreases.

Information provided by the Combined Fund and assumptions made by the Company are as follows:

At the beginning of the plan year

Number of assigned beneficiaries for the Brink’s Companies

Total unassigned pool of beneficiaries

Percent of total unassigned pool allocated to the Brink’s Companies

Health benefit premium per beneficiary

2003

2,581

17,394

9.2%

2,965

2002

2,814

15,390

6.8%

2,853

According to the Health Benefit Act, the rate of inflation for per-beneficiary health care premiums is equal to the
medical care component of the Consumer Price Index. At December 31, 2003, annual inflation rates for per-
beneficiary health care premiums were assumed to be 4.5% for all future years (at December 31, 2002: 5% in
2003, declining to 4.5% over five years). The U.S. Life 79-81 mortality table has been used to estimate a
gradual decline in the number of beneficiaries. The Company’s estimate assumes that there will be no additions
to the Combined Fund unassigned beneficiary group as a result of future coal operator insolvencies.

The Brink’s Company

Undiscounted Obligation for Health Benefit Act Liabilities

2003 ANNUAL REPORT

(In millions)

Combined Fund:

Assigned beneficiaries

Unassigned beneficiaries

Other

December 31,

2003

2002

124.5

65.7

7.3

197.5

135.1

31.9

7.1

174.1

Reconciliation of Health Benefit Act Liabilities

(In millions)

Beginning of the year

Actuarial loss (a)

Payments

End of the year

(a) Charged to income (loss) from discontinued operations.

Years Ended December 31,

2003

174.1

31.3

(7.9)

197.5

2002

159.9

24.0

(9.8)

174.1

2001

161.7

8.0

(9.8)

159.9

The $31.3 million actuarial loss in 2003 was recorded in the fourth quarter and was primarily related to the
assumed increase in the number of unassigned beneficiaries allocated to the Company. The increased
allocation was due to two factors. First, the Company increased its allocation percentage because of a change
in the way the Company interprets the statute governing the allocation, based on findings of recent court cases.
Second, other coal operations became insolvent during the period, which transferred their assigned
beneficiaries to the unassigned pool and reduced the denominator (the total assigned pool) in the computation
of the allocation percentage, increasing the Company’s allocation assumption.

The $24.0 million actuarial loss in 2002 primarily resulted from the Company’s being able to obtain and use
Company-specific information regarding the age of the beneficiaries covered by the Health Benefit Act rather
than using averages relating to the entire population of beneficiaries covered, slightly higher per-beneficiary
health care premiums, and slightly lower mortality than was estimated at the end of 2001 for the plan year
ended September 30, 2002.

The $8.0 million actuarial loss in 2001 was primarily the result of a higher number of assigned beneficiaries as
of October 1, 2001 than was estimated at the end of 2000. The Combined Fund premium per beneficiary for the
plan year beginning October 1, 2001 was essentially equal to that estimated at the end of 2000.

The Company currently estimates that its annual cash funding under the Health Benefit Act will be slightly
higher in 2004, increase in 2005 to approximately $12 million as a result of the assumption that premiums for
unassigned beneficiaries will not be paid for through transfers from the AML Fund, and then payments are
expected to decline thereafter as the number of beneficiaries decreases.

The Brink’s Company

2003 ANNUAL REPORT

Pneumoconiosis (Black Lung) Benefits

The Company acts as self-insurer with respect to almost all black lung benefits. Provision is made for estimated
benefits based on annual reports prepared by independent actuaries. Unrecognized losses, representing the
excess of the present value of expected future benefits over existing accrued liabilities, are amortized over the
average remaining life expectancy of participants (approximately 10 years).

The components of net periodic postretirement benefit costs related to black lung benefits were as follows:

(In millions)

Interest cost on APBO and other

Amortization of losses

Net periodic postretirement costs

Years Ended December 31,

2003

2002

2001

4.5

1.5

6.0

5.4

1.9

7.3

4.6

0.6

5.2

Reconciliations of the APBO and funded status to the accrued other postretirement benefit costs for black lung
benefits at December 31, 2003 and 2002 are as follows:

Years Ended December 31,

2002

58.7

5.4

(7.3)

3.2

60.0

(60.0)

14.6

(45.4)

(In millions)

APBO at beginning of year

Interest costs

Benefits paid

Actuarial loss, net

APBO at end of year

Funded status

Unrecognized experience loss

2003

60.0

4.5

(7.7)

6.2

63.0

(63.0)

19.3

Accrued other postretirement benefit cost at end of year

(43.7)

The following are the other key actuarial assumptions for the black lung obligations:

Black Lung Benefits

Discount rate:

Postretirement cost

Benefit obligation at year end

Medical cost inflation

December 31,

2003

2002

6.75%

6.25%

8.00%

7.25%

6.75%

8.00%

The 1959-1961 Mortality Table for U.S. White Males and Females is used.

The U.S. Department of Labor issued regulations in 2000 that are intended to expand entitlement provisions
and that may have the effect of limiting an employer’s ability to rebut claims. The regulation is being disputed by
companies in the coal industry. Due to the Company’s judgment that any additional amounts owed are not
reasonably estimable, the Company has not included any additional amounts related to the new regulations in
the actuarial present value of self-insured black lung benefits.

The Brink’s Company

2003 ANNUAL REPORT

NOTE 5 – INVESTMENTS HELD BY VEBA TRUST

The Company’s VEBA held various types of investments as described below. The VEBA assets have been
placed with investment managers which operate within specific guidelines. Accordingly, the Company has no
daily direct control over the assets held. The information shown below reflects unrealized gains and losses as
of December 31, 2003 and 2002. The VEBA retains all earnings from its investments. At the beginning of
2004, the use of the VEBA was restricted to the Company’s coal-related postretirement medical plan. The
Company may use the assets in the VEBA only to pay for certain retiree benefits and not for other purposes.

(In millions)

December 31, 2003

Debt securities:

Government

Corporate

Debt securities

Equity securities

Cash equivalents

Cost

9.7

20.4

30.1

70.3

0.4

Total assets held by the VEBA

$ 100.8

December 31, 2002

Debt securities:

Government

Corporate

Debt securities

Cash equivalents

1.8

13.3

15.1

3.3

Total assets held by the VEBA

18.4

Gross
unrealized
holding
gains

Gross
unrealized
holding
losses

0.1

0.2

4.8

5.0

(0.1)

(0.2)

(0.3)

(0.6)

(0.2)

Fair
Value

9.7

20.3

30.0

74.8

0.4

105.2

1.8

13.1

14.9

3.3

18.2

The contractual maturities of debt securities at December 31, 2003 are:

(In millions)

Due in one year or less

Due after one through five years

Due after five through 10 years

Due after 10 years

Total

Cost

6.0

20.1

1.7

2.3

30.1

Fair Value

5.8

20.2

1.7

2.3

30.0

The Brink’s Company

NOTE 6 – FORMER NATURAL RESOURCE OPERATIONS

The Company disposed of essentially all of its natural resources interests in 2002, 2003, and early 2004.

Summary of Proceeds from Sales of Natural Resource Interests

2003 ANNUAL REPORT

Cash
Received

Liabilities
Assumed by
Purchaser (a)

Notes
Receivable
and Royalty
Agreement (b)

Fair Value
Received for
Assets Disposed

(In millions)

2002

Coal business

(Virginia and Kentucky)

42.3

22.1

24.0

88.4

2003

Natural gas business

Portion of timber business

Equity interest in MPI Mines Ltd.

Coal assets (West Virginia)

2003

2004

Remainder of timber business

Gold business

81.2

5.4

18.8

14.0

119.4

33.7

1.1

14.8

2.6

81.2

5.4

18.8

28.8

134.2

33.7

3.7

(a) Liabilities in this column are primarily reclamation liabilities and exclude working capital liabilities.

(b) The Company settled the royalty agreement and collected the notes receivables in 2003 for $26.0 million in cash.

The Brink’s Company

2003 ANNUAL REPORT

Discontinued Operations

(In millions)

Gain (loss) on sale of

Coal

Natural Gas

Timber

Results from operations

Coal (a)

Natural Gas

Timber

Gold

Adjustments to contingent liabilities of former operations

Health Benefit Act liabilities (See note 4)

Withdrawal liabilities (See note 4)

Reclamation liabilities

Recovery of environmental costs (See note 23)

Other

Pretax gain (loss) on disposals

Income tax benefit (expense)

Income (loss) from discontinued operations

Years Ended December 31,

2003

2002

2001

56.2

4.8

11.2

(0.2)

(4.1)

(31.3)

(17.0)

(3.2)

5.3

(2.5)

19.2

(8.0)

11.2

13.2

(28.1)

9.0

(1.0)

(7.6)

(24.0)

(26.8)

(65.3)

22.0

(43.3)

(15.9)

(22.2)

11.3

(2.7)

1.1

(8.0)

(8.2)

(44.6)

22.9

(21.7)

(a) Coal’s loss was recognized under APB No. 30, “Reporting the Results of Operations – Reporting the Effects of Disposal of a Segment of a
Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions,” in which future losses are estimated and
accrued in advance of the period in which losses occur.

Gain (loss) on Sale
During 2000, an $85.9 million estimated loss on the sale of the coal business was recorded, and during 2001
the estimated loss was increased by $15.9 million. A $13.2 million reversal of the previously estimated loss on
sale was recorded during 2002 to reflect the amount of actual proceeds and values of assets and liabilities at
the dates of sale. The assets disposed of in 2002 primarily consisted of operations including coal reserves,
property, plant and equipment, the Company’s economic interest in Dominion Terminal Associates and
inventory. Certain liabilities, primarily reclamation costs related to properties disposed of, were assumed by the
purchasers.

In August 2003, the Company sold its natural gas business and received $81.2 million in cash and recognized a
$56.2 million gain in discontinued operations.

In December 2003, the Company sold a portion of its timber business for $5.4 million in cash and recognized a
$4.8 million pretax gain in discontinued operations. The Company received an additional $31.8 million from
escrow in January 2004 for most of the remaining portion of its timber business. An additional $1.9 million of
cash is being held in escrow until June 2004 pending the completion of certain remaining title work by the buyer.
The Company paid $6.2 million in January 2004 to settle operating leases for equipment purchased by the
buyer. The Company expects to recognize approximately $19 million of additional pretax gains in the first
quarter of 2004 and up to a $1.9 million pretax gain in the second quarter of 2004 in discontinued operations.

The Brink’s Company

2003 ANNUAL REPORT

In February 2004, the Company sold its gold operations for approximately $1.1 million in cash plus the
assumption of liabilities. The Company recognized pretax impairment losses related to its gold business of $1.7
million in 2003 and $5.7 million in 2002. Impairment charges were triggered by the Company’s negotiations to
sell its gold operations during the last two years. The Company also recognized $1.4 million (pretax) in 2002 of
previously deferred losses on certain of its gold forward sales contracts that had been accounted for as hedges
since the hedged transactions were no longer deemed probable as a result of the potential transfer. Fair value
was estimated using projected weighted-average discounted cash flows.

In 2003, $0.1 million of interest expense was allocated to discontinued operations. No interest expense was
allocated to discontinued operations in 2002 and 2001.

Results of Operations
The following tables show selected financial information for the results from operations for discontinued
operations for the three years ended December 31, 2003.

(In millions)

Natural Gas

Revenues
Pretax income

Timber

Revenues
Pretax loss

Gold

Revenues
Pretax income (loss)

Coal

Revenues
Pretax income (loss)

Years Ended December 31,

2003

2002

2001

7.3
11.2

21.1
(0.2)

23.5
(4.1)

-
-

6.8
9.0

20.9
(1.0)

15.2
(7.6)

7.4
11.3

18.2
(2.7)

14.6
1.1

266.5
(77.5)

384.0
(31.7)

Continuing Operations

In October 2003, the Company sold its 23.3% equity interest in MPI Mines Ltd., an Australian exploration and
development company with interests in gold and nickel, for $18.8 million in cash and recognized a $10.4 million
pretax gain in continuing operations.

The Brink’s Company

2003 ANNUAL REPORT

Classification of Ongoing Expenses in the Statements of Operations

The classification of income statement items related to the Company’s former coal business during the last
three years is set forth in the following table. After the disposal of the coal business, certain expenses began to
be classified within continuing operations, while adjustments to coal-related contingent assets and liabilities
continue to be reported within discontinued operations. The classification of expenses in 2004 and beyond is
expected to be the same as in 2003:

Classification as Continuing or Discontinued Operations

Ongoing expenses:

Company-sponsored postretirement benefits

Black lung obligations

Pension

Administrative, legal and other coal expenses

Adjustments to contingent assets and liabilities of

Years Ended December 31,

2003

2002

2001

Continuing

Discontinued

former businesses (a)

Discontinued

(a)

Includes contingent reclamation liabilities of closed mines, Health Benefit Act liabilities, withdrawal liabilities from multi-employer pension
plans, workers’ compensation liabilities, and Federal Black Lung Excise Tax contingent assets.

Costs of Former Operations Included in Continuing Operations

(In millions)

Postretirement benefits other than pensions:

Retiree medical benefits

Black lung

Pension

Administrative, legal and other coal expenses, net

Other income, net

Impairment and other costs

Total

Years Ended December 31,

2003

2002

$ 49.8

6.0

(0.8)

17.4

(2.9)

$ 69.5

19.2

NOTE 7 - COSTS ASSOCIATED WITH EXIT ACTIVITIES

In 2003, management initiated a plan to close Brink’s corporate headquarters in Darien, Connecticut and
relocate employees to either Brink’s U.S. headquarters in Coppell, Texas or The Brink’s Company headquarters
in Richmond, Virginia. The following summarizes the 2003 expense, payments and liability for costs associated
with the closure:

(In millions)

Balance at December 31, 2002
Expense
Payments

Balance at December 31, 2003

One-time
Termination Benefits

Lease
Termination Costs

-
1.7
(1.4)

0.3

-
0.6
-

0.6

Other

Total

-
3.1
(2.9)

0.2

-
5.4
(4.3)

1.1

The Brink’s Company

2003 ANNUAL REPORT

One-time termination benefits of $6.5 million were paid and expensed in 2003 ($1.8 million were paid and
expensed in 2002), associated with European work force reductions at Brink’s.

NOTE 8 - PROPERTY AND EQUIPMENT

The following table presents the Company’s property and equipment that is classified as held and used:

(In millions)

Land

Buildings

Leasehold improvements

Home security systems

Vehicles

Capitalized software

Aircraft and related assets

Other machinery and equipment

Accumulated depreciation and amortization

Property and equipment, net

December 31,

2003

21.8

158.6

156.6

579.2

189.1

151.3

72.7

444.8

1,774.1

900.9

873.2

2002

72.9

140.4

138.9

527.0

161.3

131.7

85.8

456.1

1,714.1

842.9

871.2

NOTE 9 - IMPAIRMENT OF LONG-LIVED ASSETS

As described in note 1, the Company regularly records impairment charges at BHS related to disconnected
security systems. Other impairment charges recorded within continuing operations are as follows:

(In millions)

Coal assets reclassified to held and used

Other

Total

Years Ended December 31,

2003

1.3

2002

14.1

1.7

15.8

2001

1.4

At December 31, 2002, approximately $43.3 million (original carrying value) of residual long-lived coal assets
were reclassified from discontinued operations to assets held and used. The assets held and used were
reclassified individually at the lower of their actual cost, adjusted for depreciation since the time originally
classified as held for sale, or their fair value at the date the assets were reclassified to assets held and used.
Fair value was estimated using sales proceeds for similar assets during 2002 as well as estimates provided by
investment advisors. An impairment charge of $14.1 million was recognized in 2002 as a result of the
reclassification. In 2003, as described in note 6, the Company sold substantially all of its coal assets that
previously had been classified as held and used.

The Brink’s Company

NOTE 10 - OTHER ASSETS

(In millions)

Deferred subscriber acquisition costs

Investment in equity affiliates

Deferred charges for aircraft heavy maintenance

Long-term receivables

Prepaid pension assets

Other

Other assets

NOTE 11 - ACCRUED LIABILITIES

(In millions)

Payroll and other employee liabilities

Taxes

Workers’ compensation and other claims

Postretirement benefits other than pensions

Other

Accrued liabilities

NOTE 12 - OTHER LIABILITIES

2003 ANNUAL REPORT

2003

60.1

30.0

22.3

18.5

15.8

36.2

December 31,

2002

54.7

35.5

27.8

40.7

23.8

28.8

182.9

211.3

2003

125.6

90.9

38.0

48.9

200.8

504.2

December 31,

2002

107.5

84.9

41.9

39.4

202.6

476.3

(In millions)

Workers’ compensation and other claims

Withdrawal obligations for coal-related multi-employer pension plans (a)

Minority interest

Aircraft lease turnback obligations (b)

Other

Other liabilities

(a) See note 4.

2003

60.4

52.0

36.1

29.8

61.1

December 31,

2002

52.7

35.0

36.0

42.1

65.7

231.5

239.4

(b) Aircraft lease turnback obligations represent amounts estimated to be paid at the end of the lease term related to heavy maintenance.

The Brink’s Company

NOTE 13 - LONG-TERM DEBT

(In millions, denominated in U.S. dollars unless noted)

Bank credit facilities:

U.S. Revolving Facility (year-end weighted average rate

2.40% in 2003 and 2.27% in 2002)

Euro-denominated credit facilities of French subsidiaries (year-end

weighted average rate 3.40% in 2003 and 4.35% in 2002)

Other non-U.S. dollar denominated facilities (year-end weighted

average rate 8.70% in 2003 and 9.88% in 2002)

Senior Notes:

Series A, 7.84%, due 2005-2007

Series B, 8.02%, due 2008

Series C, 7.17%, due 2006-2008

Other:

Capital leases (average rates: 5.54% in 2003 and 5.37% in 2002)

Dominion Terminal Associates 6.0% bonds, due 2033

Total long-term debt

Current maturities of long-term debt:

Bank credit facilities

Capital leases

Total current maturities of long-term debt

2003 ANNUAL REPORT

December 31,

2003

2002

30.9

129.0

13.4

19.9

64.2

55.0

20.0

95.0

36.3

43.2

238.7

7.3

9.9

17.2

12.4

10.5

151.9

55.0

20.0

95.0

27.4

43.2

317.5

6.4

6.9

13.3

Total long-term debt excluding current maturities

221.5

304.2

The Company has an unsecured $350 million syndicated bank credit facility (the “U.S. Revolving Facility”) from
which it may borrow (or otherwise satisfy credit needs) on a revolving basis over a three-year term ending
September 2005. At December 31, 2003, $239.9 million was available under the U.S. Revolving Facility. The
Company has the option to borrow based on a Libor-based rate plus a margin, a prime rate plus a margin or a
competitive bid among the individual banks. The margin is 0.825% for LIBOR-based borrowings. The credit
agreement provides for margin increases, but does not accelerate payments should the Company's credit rating
be reduced. When borrowings and letters of credit under the U.S. Revolving Facility are in excess of $175
million, the applicable interest rate is increased by 0.125%. The Company also pays an annual fee on the U.S.
Revolving Facility based on the Company's credit rating. The facility fee, which can range from 0.125% to
0.400%, was 0.175% as of December 31, 2003.

The Company has $95 million of Senior Notes outstanding. Interest on each series of the Senior Notes is
payable semiannually, and the Company has the option to prepay all or a portion of the Notes prior to maturity
with a prepayment penalty. The Senior Notes are unsecured.

The Brink’s Company

2003 ANNUAL REPORT

Minimum repayments of long-term debt are as follows:

(In millions)

2004
2005
2006
2007
2008
Later years

Total

Capital

Leases

9.9
8.4
5.5
4.2
3.2
5.1

36.3

Other long-

term debt

7.3
56.1
36.5
27.0
28.7
46.8

202.4

Total

17.2
64.5
42.0
31.2
31.9
51.9

238.7

In September 2003, at the Company’s request, the Peninsula Ports Authority of Virginia issued a new series of
bonds to replace the previous bonds related to Dominion Terminal Associates, a deep water coal terminal in
which the Company no longer has an interest. The Company continues to pay interest on and guarantee
payment of the $43.2 million principle of the new bonds and ultimately will have to pay for the retirement of the
new bonds in accordance with the terms of the guarantee. The new bonds bear a fixed interest rate of 6.0%
(versus a fixed interest rate of 7.375% for the previous bonds) and mature in 2033. The new bonds may mature
prior to 2033 upon the occurrence of certain specified events such as the determination that the bonds are
taxable or the failure of the Company to abide by the terms of its guarantee.

At December 31, 2003, the Company had undrawn unsecured letters of credit and guarantees totaling $186.5
million. These letters of credit primarily support the Company’s obligations under various self-insurance
programs, credit facilities and aircraft lease obligations.

100

The Brink’s Company

2003 ANNUAL REPORT

NOTE 14 - ACCOUNTS RECEIVABLE AND ASSET SECURITIZATION

(In millions)

Trade

Other

Estimated uncollectible amounts

Accounts receivable, net

December 31,

2003

562.8

45.1

607.9

(27.6)

580.3

2002

522.1

53.4

575.5

(35.5)

540.0

In December 2000, the Company entered into a five-year agreement to sell a revolving interest in BAX Global’s
U.S. domestic accounts receivable through a commercial paper conduit program. The primary purpose of the
agreement was to obtain access to a lower cost source of funds.

Qualifying accounts receivable of BAX Global’s U.S. operations are sold on a monthly basis, without recourse,
to BAX Funding Corporation (“BAX Funding”), a wholly owned, consolidated special-purpose subsidiary of BAX
Global. BAX Funding then sells an undivided interest in the entire pool of accounts receivable to a bank-
sponsored conduit entity. The conduit issues commercial paper to finance the purchase of its interest in the
receivables. Under the program, BAX Funding may sell up to a $90.0 million interest in the receivables pool to
the conduit. During the term of the agreement, the conduit’s interest in daily collections of accounts receivable is
reinvested in newly originated receivables.

At the end of the five-year term, or in the event certain circumstances cause an early termination of the
program, the daily reinvestment will be discontinued and collections will be used to pay down the conduit’s
interest in the receivables pool. Early termination of the program may occur if certain ratios, including ratios of
delinquent and defaulted accounts, are exceeded. Early termination may also be triggered if other events occur
as described in the agreement, including the acceleration of debt repayments of the Company’s $350 million
U.S. revolving bank credit facility.

The conduit has a priority collection interest in the entire pool of receivables and, as a result, BAX Funding has
retained credit risk in excess of its retained interest. BAX Funding sells its receivables to the conduit at a
discount. The amount of the discount is based on the conduit’s borrowing cost plus incremental fees. BAX
Global is the designated servicer of the receivables pool and is responsible for collections, reinvestment, and
periodic reporting to the conduit. The Brink’s Company has guaranteed the performance of BAX Global with
respect to the agreement.

(In millions)

Accounts receivable purchased by BAX Funding:

Total pool

Revolving interest sold to conduit

Amount included in accounts receivable

December 31,

2003

93.0

(77.0)

16.0

2002

93.3

(72.0)

21.3

Due to the short-term nature of the Company’s retained interest in accounts receivable, fair value approximates
carrying value, net of an appropriate allowance. The Company has not recorded a servicing asset or liability
because the average servicing period for accounts receivable approximates one month.

101

The Brink’s Company

2003 ANNUAL REPORT

NOTE 15 - OPERATING LEASES

The Company leases facilities, vehicles, aircraft, computers and other equipment under long-term operating and
capital leases with varying terms. Most of the operating leases contain renewal and/or purchase options. The
Company expects that in the normal course of business, the majority of operating leases will be renewed or
replaced by other leases.

As of December 31, 2003, future minimum lease payments under noncancellable operating leases with initial or
remaining lease terms in excess of one year are included below. Expected payments for heavy maintenance of
aircraft are excluded from the table.

(In millions)

Facilities

Vehicles

Aircraft

Other

Total

2004

2005

2006

2007

2008

Later years

85.4

62.9

47.2

38.7

31.9

112.0

$ 378.1

29.0

22.6

15.1

9.4

6.2

7.1

89.4

14.6

5.2

0.8

1.2

23.4

8.3

4.6

3.3

1.7

0.8

1.2

19.9

137.3

95.3

66.4

50.6

39.7

121.5

510.8

The table above includes lease payments for the initial accounting lease term and all renewal periods for certain
vehicles used in Brink’s and BHS’ operations. If the Company were to not renew these leases, it would be
subject to a residual value guarantee. The Company’s maximum residual value guarantee was $54.1 million at
December 31, 2003. If the Company continues to renew the leases and pays all of the lease payments for the
vehicles that have been included in the above table (which aggregate lease payments decline over eight years),
this residual value guarantee will reduce to zero at the end of the final renewal period.

The Company has leases on certain operating assets under which it has the option to either renew the lease,
purchase the asset at a predetermined price, or pay a guaranteed residual value. At December 31, 2003, the
maximum guaranteed residuals on these leases totaled $17.1 million.

Net rent expense amounted to $152.0 million in 2003, $149.0 million in 2002 and $142.3 million in 2001.

102

The Brink’s Company

2003 ANNUAL REPORT

NOTE 16 - EQUITY-BASED COMPENSATION PLANS

The Company has stock incentive plans to encourage employees and nonemployee directors to remain with the
Company and to more closely align their interests with those of the Company’s shareholders.

Stock Option Plans

The Company grants options under its 1988 Stock Option Plan (the “1988 Plan”) to executives and key
employees and under its Non-Employee Directors’ Stock Option Plan (the “Non-Employee Plan”) to outside
directors, to purchase common stock at a price not less than the average quoted market value at the date of
grant. All grants under the 1988 Plan made in the last three years have a maximum term of six years and
substantially all of these grants either vest over three years from the date of grant or vest 100% at the end of the
third year. The Non-Employee Plan options are granted with a maximum term of ten years and vest in full at the
end of six months. There are 1.3 million shares underlying options for both plans that are authorized, but not yet
granted.

The table below summarizes the activity in all plans for options for the Company’s common stock for 2003, 2002
and 2001.

(Shares in millions)

Outstanding at December 31, 2000

Granted

Exercised

Forfeited or expired

Outstanding at December 31, 2001

Granted

Exercised

Forfeited or expired

Outstanding at December 31, 2002

Granted

Exercised

Forfeited or expired

Outstanding at December 31, 2003

3.4

1.2

(0.3)

(0.6)

3.7

1.0

(0.1)

(0.5)

4.1

0.6

(0.1)

(0.6)

4.0

Per Share
Weighted Average
Exercise Price

25.83

21.03

16.15

32.88

23.96

21.50

17.17

25.80

23.29

15.24

14.10

30.79

21.14

103

The Brink’s Company

2003 ANNUAL REPORT

The following table summarizes information about stock options outstanding as of December 31, 2003.

(Shares in millions)

Stock Options
Outstanding

Stock Options
Exercisable

Range of
Exercise Prices

Remaining Contractual
Life (Years)

Weighted Average
Exercise Price

Weighted Average

Exercise Price

Weighted Average

Per Share

$ 13.66 to 14.49

14.50 to 16.99

17.00 to 19.99

20.00 to 21.49

21.50 to 23.99

24.00 to 30.99

31.00 to 228.03

Total

0.5

0.6

0.4

0.9

0.4

0.3

4.0

2.7

5.5

2.6

4.3

3.7

1.9

0.7

3.5

13.68

15.31

18.75

21.38

21.76

27.21

38.93

21.14

0.5

0.3

0.5

0.4

0.3

2.3

13.68

16.77

18.74

21.15

21.84

27.21

38.93

22.62

Exercisable options at the end of the year for common stock were 2.3 million in 2003, 2.1 million in 2002, and
1.7 million in 2001.

Employee Stock Purchase Plan

Under the 1994 Employee Stock Purchase Plan (the “ESPP”), as amended, the Company is authorized to issue
up to 1.0 million shares of common stock (of which 0.9 million shares had been issued as of December 31,
2003) to eligible employees. The ESPP is a noncompensatory plan that allows eligible employees to buy the
Company’s common stock at below market value, subject to plan limitations on the amount an employee may
purchase annually. Under the ESPP, the Company sold approximately 0.2 million shares of common stock to
employees in 2003, approximately 0.1 million shares in 2002 and approximately 0.1 million in 2001.

NOTE 17 - CAPITAL STOCK

Repurchase Program

The Company has the remaining authority to purchase up to 1.0 million shares of common stock under a share
repurchase program authorized by the Board of Directors, with an aggregate purchase price limitation of $19.1
million.

Employee Benefits Trust

The Brink’s Company Employee Benefits Trust (the “Trust”) holds shares of the Company’s common stock to
fund obligations under certain compensation and employee benefit programs that provide for the issuance of
stock. In December 2003 the Board approved an additional 2.5 million shares of common stock to be issued to
the Trust, which issuance occurred in 2004. Shares owned by the Trust are accounted for at fair value as a
reduction of shareholders’ equity. Shares of common stock will be voted by the trustee in the same proportion
as those voted by the Company’s employees participating in the Company’s 401(k) plan.

Preferred Stock

At December 31, 2003, the Company has authority to issue up to 2.0 million shares of preferred stock, par value
$10 per share.

104

The Brink’s Company

2003 ANNUAL REPORT

Series A Preferred Stock Rights Agreement

Under the Amended and Restated Rights Agreement dated as of September 2003, holders of common stock
have rights to purchase a new Series A Participating Cumulative Preferred Stock (the “Series A Preferred
Stock”) of the Company at the rate of one right for each share of common stock. Each right, if and when it
becomes exercisable, will entitle the holder to purchase one-thousandth of a share of Series A Preferred Stock
at a purchase price of $60.00, subject to adjustment.

Each fractional share of Series A Preferred Stock will be entitled to participate in dividends and to vote on an
equivalent basis with one whole share of common stock. Each right will not be exercisable until after a third
party acquires more than 15% of the total voting rights of all outstanding common stock or on specific dates as
may be designated by the Board after commencement of a tender offer or exchange offer by a third party for
more than 15% of the total voting rights of all outstanding common stock.

If after the rights become exercisable, the Company is acquired in a merger or other business combination,
each right will entitle the holder to purchase, for the purchase price, common stock of the surviving or acquiring
company having a market value of twice the purchase price. In the event a third party acquires more than 15%
of all outstanding common stock, the rights will entitle each holder to purchase, at the purchase price, that
number of fractional shares of Series A Preferred Stock equivalent to the number of shares of common stock
which at the time of the triggering event would have a market value of twice the purchase price. As an
alternative to the purchase described in the previous sentence, the Board may elect to exchange the rights for
other forms of consideration, including that number of shares of common stock obtained by dividing the
purchase price by the market price of the common stock at the time of the exchange or for cash equal to the
purchase price. The rights may be redeemed by the Company at a price of $0.01 per right and expire on
September 25, 2007.

Series C Convertible Preferred Stock

On August 15, 2002 the Company redeemed all 21,433 outstanding shares of the $31.25 Series C Cumulative
Preferred Stock for $506.25 per share, or $10.8 million, including a $0.6 million premium on the redemption.
The premium represents the excess of cash paid to holders over the carrying value of the shares redeemed.

NOTE 18 - INCOME TAXES

The provision (benefit) for income taxes from continuing operations consists of the following:

(In millions)

Current tax provision

U.S. federal

State

Foreign

Deferred tax provision (benefit)

U.S. federal

State

Foreign

Years Ended December 31,

2003

2002

2001

1.0

24.5

25.5

(8.6)

20.4

18.4

30.2

55.7

12.0

3.1

25.8

40.9

2.1

(4.1)

1.5

(0.5)

40.4

3.5

23.9

30.9

3.4

(4.1)

(5.1)

(5.8)

25.1

105

The Brink’s Company

2003 ANNUAL REPORT

The U.S. federal current income tax provisions on continuing operations in 2002 and 2001 are offset by U.S
federal current tax benefits included in the loss from discontinued operations.

The tax benefit for compensation expense related to the exercise of certain employee stock options for tax
purposes in excess of compensation expense for financial reporting purposes is recognized as an adjustment to
shareholders’ equity.

The components of the net deferred tax asset are as follows:

(In millions)

Deferred tax assets

Accounts receivable

Postretirement benefits other than pensions

Pension liabilities

Multi-employer pension plan withdrawal liabilities

Workers’ compensation and other claims

Deferred revenue

Other assets and liabilities

Net operating loss carryforwards

Alternative minimum tax credits

Subtotal

Valuation allowances

Total deferred tax assets

Deferred tax liabilities

Property and equipment, net

Prepaid pension assets

Other prepaid assets

VEBA

Other assets and miscellaneous

Total deferred tax liabilities

Net deferred tax asset

Included in:

Current assets

Noncurrent assets

Current liabilities, included in accrued liabilities

Noncurrent liabilities

Net deferred tax asset

December 31,

2003

2002

6.8

178.2

35.4

18.2

47.3

58.0

149.9

53.2

63.3

610.3

(38.5)

571.8

116.2

5.5

19.1

36.8

46.4

224.0

347.8

91.7

282.7

(0.1)

(26.5)

347.8

10.9

164.3

49.4

12.2

45.9

54.4

138.8

54.1

52.5

582.5

(9.8)

572.7

80.0

3.8

17.9

6.4

63.2

171.3

401.4

81.3

349.3

(0.8)

(28.4)

401.4

The valuation allowances relate to deferred tax assets in certain state and non-U.S. jurisdictions. Based on the
Company’s historical and expected future taxable earnings, management believes it is more likely than not that
the Company will realize the benefit of the existing deferred tax assets, net of valuation allowances, at
December 31, 2003.

106

The Brink’s Company

The following table accounts for the difference between the actual tax provision from continuing operations and
the amounts obtained by applying the statutory U.S. federal income tax rate of 35% in 2003, 2002 and 2001 to
the income from continuing operations before income taxes.

2003 ANNUAL REPORT

(In millions)

Income from continuing operations before income taxes:

United States

Foreign

Total

Tax provision computed at statutory rate

Increases (reductions) in taxes due to:

Adjustments to the valuation allowances

Federal benefit for increase in valuation allowance on

state deferred tax assets

State income taxes (net of federal tax benefit exclusive of

valuation allowance)

Goodwill amortization

Difference between total taxes on foreign income and the

U.S. federal statutory rate

Taxes provided on undistributed earnings of foreign equity affiliates

Changes in accrual for tax contingencies

Adjustment of deferred tax accounts

Other

Years Ended December 31,

2003

2002

2001

10.1

63.8

73.9

25.9

27.9

(5.9)

2.9

0.6

3.7

(6.7)

5.0

2.3

61.9

47.9

109.8

38.4

1.5

(0.7)

1.5

(3.4)

1.6

1.5

40.4

(6.6)

70.0

63.4

22.2

1.3

(0.4)

2.1

(1.5)

1.4

25.1

Actual tax provision from continuing operations

55.7

The Company’s income tax provision in 2003 includes $22.0 million of expense related to fourth quarter
adjustments to valuation allowances for certain state and foreign deferred tax assets, net of the federal benefit
of recording valuation allowances on state deferred tax assets. The valuation allowances were required due to
the Company’s assessment that these assets did not meet the more-likely-than-not recognition criteria of SFAS
No. 109.

Adjustments were made to the Company’s deferred tax assets and liabilities in 2003 based on an analysis
completed in 2003. In 2003 and 2002, the Company also reversed contingency accruals related to favorable
settlements of issues relating primarily to the Company’s U.S. federal tax returns.

The Company’s U.S. entities file a consolidated U.S. federal income tax return.

As of December 31, 2003, the Company had $63.3 million of alternative minimum tax credits available to offset
future U.S. federal income taxes and, under current tax law, the carryforward period for these credits is
unlimited.

107

The Brink’s Company

2003 ANNUAL REPORT

The tax benefit of net operating loss carryforwards as of December 31, 2003 was $53.2 million and related to
U.S. federal and various state and foreign taxing jurisdictions. The gross amount of the net operating losses was
$250.6 million as of December 31, 2003. The expiration periods primarily range from 5 years to an unlimited
period.

The Company and its subsidiaries are subject to tax examinations in various U.S. and foreign jurisdictions.
While it is difficult to predict the final outcome of the various issues that arise during an examination, the
Company believes that it has adequately provided for all contingent income tax liabilities and interest.

NOTE 19 - SUPPLEMENTAL CASH FLOW INFORMATION

(In millions)

Cash paid for:

Interest

Income taxes, net

Years Ended December 31,

2003

2002

2001

23.9

25.3

22.7

14.8

31.1

20.1

NOTE 20 - OTHER OPERATING INCOME, NET

(In millions)

Gains on sale of operating assets, net

Foreign currency transaction gains, net

Share of earnings of equity affiliates

Royalty income

Other

Total

Years Ended December 31,
2002

2001

2003

6.4

3.2

0.3

1.7

4.0

15.6

2.0

1.2

1.3

0.7

5.2

4.0

3.4

1.3

3.9

12.6

NOTE 21 - OTHER NONOPERATING INCOME (EXPENSE), NET

(In millions)

Gain on monetization of coal royalty agreement

Gains (losses) on sale of marketable securities

Discounts and other fees of accounts receivable securitization program

Other, net

Total

Years Ended December 31,

2003

2.6

(0.2)

(1.7)

1.6

2.3

2002

2001

0.8

(1.6)

(4.4)

(5.2)

4.0

(4.0)

0.2

108

The Brink’s Company

2003 ANNUAL REPORT

NOTE 22 - RISK MANAGEMENT

The Company has risk management policies designed to protect the earnings and cash flows of the Company
from adverse fluctuations in interest rates, commodity prices and foreign exchange rates. The Company utilizes
derivative and non-derivative financial instruments in order to manage these risks. The Company does not use
derivative financial instruments for purposes other than hedging underlying commercial or financial exposures of
the Company. The risk that counterparties to these derivative financial instruments may be unable to perform is
minimized by limiting the counterparties to major financial institutions with investment grade credit ratings. The
Company does not expect to incur a loss from the failure of any counterparty to perform under the agreements.

Derivative Financial Instruments and Hedging Activities

Interest Rate Risk Management
The Company’s interest-bearing debt and certain other obligations are subject to interest rate fluctuation risk.
The Company’s risk management policy requires that the Company maintain certain ratios between fixed and
floating rate obligations. The Company utilizes derivative financial instruments such as interest rate swaps to
assist in meeting this objective. The Company has designated its interest rate swaps as cash flow hedges for
accounting purposes.

The Company has entered into interest rate swaps that effectively change a portion of the variable cash flows
from floating rates to fixed rates. The notional amounts of the swaps outstanding at December 31, 2003 are
$50.0 million through August 2005.

Changes in fair value on interest rate swaps are initially recorded in other comprehensive income (loss); they
are subsequently reclassified to nonoperating expense (for hedges related to the accounts receivable
securitization facility) and to interest expense (for hedges related to debt) in the same period in which the
variable cash flows affect earnings. Any ineffectiveness in the hedging relationship is recognized immediately in
earnings. During each of the three years ended December 31, 2003, no significant amounts were included in
earnings as a result of the interest rate swaps being ineffective. For the three years ended December 31, 2003,
no amounts were excluded from the assessment of effectiveness. At December 31, 2003, $0.8 million of
unrecognized pretax loss was included in accumulated other comprehensive loss and of this amount, $0.7
million is expected to be recognized in earnings in 2004.

Commodities Price Risk Management
The Company consumes various commodities in the normal course of its business and utilizes derivative
financial instruments to minimize the variability in forecasted cash flows due to price movements in certain of
these commodities. Transactions involving commodities in continuing operations that are the subject of the
Company’s risk management policy are purchases of jet fuel for BAX Global’s North America fleet operations.

The Company enters into swap contracts and collars to hedge a portion of its forecasted jet fuel purchases for
use in the BAX Global aircraft operation. In addition, depending on market conditions, the Company has
charged its customers a fuel surcharge to offset the effects of high jet fuel prices. At December 31, 2003, the
outstanding notional amount of swap contracts for jet fuel totaled 8 million gallons.

Prior to the February 2004 sale of its gold operations, the Company entered into forward gold sales contracts to
fix the selling price on a portion of forecasted gold sales. As part of the sale of the business, the buyer assumed
all remaining derivative financial instruments at the date of the sale.

During 2003, the Company utilized forward sales contracts and option strategies to hedge the selling price on a
portion of its forecasted natural gas sales. The Company exited the natural gas business in 2003.

109

The Brink’s Company

2003 ANNUAL REPORT

The Company has designated its commodity hedges as cash flow hedges for accounting purposes.
Effectiveness is assessed based on the total changes in the estimated present value of cash flows for its jet fuel
and natural gas hedges. The effectiveness of gold hedges is assessed based on changes in the spot rate of
gold and other changes in expected cash flows are excluded from the assessment.

For jet fuel swaps, the changes in fair value are recorded in other comprehensive income (loss) and
subsequently reclassified to earnings, as a component of operating expenses, in the same period as the jet fuel
is used. For natural gas and gold contracts prior to the sale of these businesses, the changes in fair value were
recorded in other accumulated comprehensive income (loss) and subsequently reclassified to earnings, as a
component of discontinued operations.

(In millions, except number of months)

Amounts recognized in 2003 pretax earnings:

Ineffective amounts

Amounts excluded in assessment of effectiveness

Net gain in other comprehensive income (loss) at December 31, 2003 expected to be

reclassified to earnings in 2004

Maximum number of months hedges outstanding

Jet Fuel

0.1

0.4

Foreign Currency Risk Management
The Company is exposed to foreign currency exchange fluctuations due to certain transactions to which the
Company is a party. Some customers are billed for BAX Global’s services in currencies that are different than
the functional currency of the subsidiary that recognizes the sale. Some transportation costs incurred by BAX
Global’s non-U.S. subsidiaries are denominated in currencies that are different than the subsidiaries’ functional
currency. The Company’s BAX Global operation has a wholly owned international subsidiary that serves as a
finance coordination center. The subsidiary has the U.S. dollar as its functional currency, and has intercompany
receivables and payables that are not denominated in U.S. dollars.

The Company utilizes foreign currency forward contracts to minimize the variability in cash flows due to changes
in foreign currency values. The Company’s foreign currency forward contracts provide an economic hedge of
the risk associated with changes in currency rates on the related assets and liabilities. Changes in the fair value
of foreign currency forward contracts are reported in earnings in the same period that the foreign currency
transaction gains and losses on the related assets and liabilities are reported.

As of December 31, 2003, the maximum length of time over which the Company is hedging its exposure to the
variability in future cash flows associated with forecasted foreign currency denominated transactions is six
months.

Non-Derivative Financial Instruments

Non-derivative financial instruments, which potentially subject the Company to concentrations of credit risk,
consist principally of cash and cash equivalents and trade receivables. The Company places its cash and cash
equivalents with high-credit-quality financial institutions and the Company limits the amount of credit exposure to
any one financial institution. Concentrations of credit risk with respect to trade receivables are reduced as a
result of the diversification benefit provided by the large number of customers comprising the Company’s
customer base, and their dispersion across many different industries and geographic areas. Credit limits,
ongoing credit evaluation and account-monitoring procedures are utilized to minimize the risk of loss from
nonperformance on trade receivables.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued
liabilities approximate fair value because of the short-term nature of these instruments.

110

The Brink’s Company

2003 ANNUAL REPORT

The fair value of the Company’s floating-rate short-term and long-term debt approximates the carrying amount.
The fair value of the Company’s significant fixed rate long-term debt is described below. Fair value is estimated
by discounting the future cash flows using rates for similar debt instruments at the valuation date.

(In millions)

Senior Notes

DTA bonds

December 31,

2003

2002

Fair
Value

107.2

48.0

Carrying
Values

95.0

43.2

Fair
Value

107.3

53.1

Carrying
Values

95.0

43.2

NOTE 23 - OTHER COMMITMENTS AND CONTINGENCIES

Purchase Obligations

ACMI Agreements
At December 31, 2003, the Company had aircraft, crew, maintenance and insurance (“ACMI”) agreements with
third parties to provide aircraft usage and services to BAX Global, which expire in 2004. The fixed and
determinable portion of the obligations under ACMI agreements aggregate approximately $13.0 million in 2004.
Amounts purchased under these arrangements, including any variable component based on hours of usage,
were $49.5 million in 2003, $49.4 million in 2002 and $63.4 million in 2001.

Other
At December 31, 2003, the Company had noncancelable commitments to purchase $12.5 million of equipment
and $6.5 million of computer processing and consulting services.

Former Coal Operations

At December 31, 2003, the Company had obligations of $24.4 million under mineral lease agreements that give
it the right to access and mine coal properties in exchange for required minimum annual payments. Because
the Company does not intend to produce coal in the future, the Company has recorded a $13.4 million liability
based on the present value of these obligations.

Future advance minimum royalty payments due under the mineral lease agreements at December 31, 2003
were as follows:

(In millions)

2004

2005

2006

2007

2008

Later years

Advanced Minimum
Royalty Payments Due

0.8

2.5

1.6

1.1

16.8

24.4

Amounts paid by the Company’s former coal operations under arrangements that were charged to expense
were $0.5 million in 2003, $6.6 million in 2002 and $9.8 million in 2001.

111

The Brink’s Company

2003 ANNUAL REPORT

Federal Black Lung Excise Tax

In 1999, the U.S. District Court of the Eastern District of Virginia entered a final judgment in favor of certain of
the Company’s subsidiaries, ruling that the Federal Black Lung Excise Tax (“FBLET”) is unconstitutional as
applied to export coal sales. Through December 31, 2003, the Company had received refunds including interest
of $27.2 million, including $2.8 million received in 2003. The Company continues to pursue the refund of other
FBLET payments. Due to uncertainty as to the ultimate receipt of additional amounts, if any, which could
amount to as much as $18 million (before income taxes), the Company has not recorded receivables for
additional FBLET refunds.

Litigation

The Company is defending potentially significant civil suits. Although the Company is defending these cases
vigorously and believes that its defenses have merit, it is possible that one or more of these suits ultimately may
be decided in favor of the plaintiffs. If so, the Company expects that the ultimate amount of unaccrued losses
could range from $0 to $40 million.

Surety Bonds

The Company is required by various state and federal laws to provide security with regard to its obligations to
pay workers’ compensation, to reclaim lands used for mining by the Company’s former coal operations and to
satisfy other benefits. As of December 31, 2003, the Company had outstanding surety bonds with third parties
totaling approximately $178 million that it has arranged in order to satisfy the various security requirements.
Most of these bonds provide financial security for previously recorded liabilities. Because some of the
Company’s reclamation obligations have been assumed by purchasers of the Company’s former coal
operations, $13 million of the Company’s surety bonds are expected to be replaced by purchasers’ surety bonds
after the mining permits with the state are transferred. Surety bonds are typically renewable on a yearly basis;
however, there can be no assurance the bonds will be renewed or that premiums in the future will not increase.
If the surety bonds are not renewed, the Company believes that it has adequate available borrowing capacity
under its U.S. credit facility to provide letters of credit or other collateral to secure its obligations.

Environmental Remediation

The Company has agreed to pay a portion of the remediation costs arising from hydrocarbon contamination at a
formerly owned petroleum terminal facility (“Tankport”) in Jersey City, New Jersey, which was sold in 1983. The
Company is in the process of completing remediation of the site under an approved plan. In the fourth quarter
of 2003, the Company and a third party reached an agreement that establishes the allocation of past costs
related to the recovery of environmental costs, and as a result, the Company recognized a $5.3 million pretax
gain in discontinued operations. The Company estimates its portion of the remaining clean-up and operational
and maintenance costs to be $2.5 million.

112

The Brink’s Company

2003 ANNUAL REPORT

NOTE 24 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

(In millions, except per share amounts)

2003 Quarters
2nd

3rd

1st

4th

1st

2002 Quarters
3rd
2nd

4th

Revenues

Operating profit

Income (loss) from:

Continuing operations

Discontinued operations

Net income (loss)

Net income (loss) per common share:

Basic and diluted:

Continuing operations

Discontinued operations

Basic and diluted

$ 928.9

960.6

999.4

1,109.7

$ 889.5

908.7

943.1

992.5

0.0

13.2

22.4

64.2

34.7

33.3

34.4

29.9

(3.2)

1.5

(1.7)

5.6

0.5

6.1

11.5

38.5

50.0

4.3

$ 17.4

17.6

(29.3)

(9.3)

1.5

(25.0)

8.1

19.1

21.3

0.8

22.1

13.1

(36.3)

(23.2)

$ (0.06)

0.03

$ (0.03)

0.11

0.00

0.11

0.22

0.72

0.94

0.08

$ 0.33

(0.55)

(0.18)

(0.47)

$ 0.15

0.33

0.03

0.36

0.39

0.02

0.41

0.25

(0.69)

(0.44)

Dividends declared per common share

$ 0.025

0.025

0.025 $ 0.025

0.025

Stock prices:

High

Low

$ 18.81

12.36

16.40

12.39

18.25

23.34

$ 25.90

28.92

14.38

17.65

20.50

22.20

25.00

18.60

23.70

17.50

Earnings per share amounts for each quarter are required to be computed independently. As a result, their sum
may not equal the total year earnings per share.

The Company’s quarterly financial data has been reclassified to reflect the Company’s natural gas, timber and
gold as part of discontinued operations.

The Company’s common stock trades on the New York Stock Exchange as “BCO.” Prior to May 2003, the
Company traded on the NYSE as “PZB”. As of March 1, 2004, there were approximately 3,015 shareholders of
record of common stock.

113

The Brink’s Company

2003 ANNUAL REPORT

THE BRINK’S COMPANY
and subsidiaries

SELECTED FINANCIAL DATA

Five Years in Review

(In millions, except per share amounts)

2003

2002

2001

2000

1999

Revenues and Income

Revenues
Income (loss) from continuing operations before
cumulative effect of change in accounting principle
Income (loss) from discontinued operations (a)
Cumulative effect of change in accounting principle (b)

Net income (loss)

Financial Position

Property and equipment, net
Total assets
Long-term debt, less current maturities
Shareholders’ equity

Per Common Share (c)

$ 3,998.6

3,733.8

3,584.0

3,798.6

3,684.6

18.2
11.2
-

29.4

69.4
(43.3)
-

26.1

38.3
(21.7)
-

16.6

(2.1)
(202.5)
(52.0)

(256.6)

107.7
(73.0)
-

34.7

$ 873.2
2,548.6
221.5
495.6

871.2
2,459.9
304.2
381.2

915.5
2,423.2
257.4
476.1

925.8
2,478.7
313.6
475.8

930.4
2,459.7
395.1
749.6

Basic, net income (loss):
Continuing operations
Discontinued operations (a)
Cumulative effect of change in accounting principle (b)

Total basic

Diluted, net income (loss):
Continuing operations
Discontinued operations (a)
Cumulative effect of change in accounting principle (b)

Total diluted

Cash dividends

0.34
0.21
-

0.55

0.34
0.21
-

0.55

0.10

Per Common Share, pro forma for accounting change (b)

Basic, income (loss) from:
Continuing operations
Discontinued operations

Total basic, pro forma

Diluted, income (loss) from:
Continuing operations
Discontinued operations

Total diluted, pro forma

0.34
0.21

0.55

0.34
0.21

0.55

1.31
(0.83)
-

0.48

1.30
(0.82)
-

0.48

0.10

1.31
(0.83)

0.48

1.30
(0.82)

0.48

0.74
(0.43)
-

0.31

0.73
(0.42)
-

0.31

0.10

0.74
(0.43)

0.31

0.73
(0.42)

0.31

-
(4.07)
(1.04)

(5.11)

(0.01)
(4.07)
(1.04)

(5.12)

0.10

-
(4.07)

(4.07)

(0.01)
(4.07)

(4.08)

2.55
(1.49)
-

1.06

2.18
(1.48)
-

0.70

2.46
(1.49)

0.97

2.08
(1.48)

0.60

Weighted Average Common Shares Outstanding

Basic
Diluted

53.1
53.2

52.1
52.4

51.2
51.4

50.1
50.1

49.1
49.3

114

The Brink’s Company

2003 ANNUAL REPORT

THE BRINK’S COMPANY
and subsidiaries

SELECTED FINANCIAL DATA (CONTINUED)

Five Years in Review

(In millions, except per share amounts)

2003

2002

2001

2000

1999

Per Pittston Brink’s Group Common Share (c)

Basic net income
Diluted net income
Pro forma basic
Pro forma diluted
Cash dividends

Per Pittston BAX Group Common Share (c)

Basic net income
Diluted net income
Cash dividends

Per Pittston Minerals Group Common Share (c)

Basic net income (loss):
Continuing operations
Discontinued operations (a)

Total basic

Diluted net income (loss):
Continuing operations
Discontinued operations (a)

Total diluted

Cash dividends

N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A

N/A
N/A

N/A

N/A
N/A

N/A

N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A

N/A
N/A

N/A

N/A
N/A

N/A

N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A

N/A
N/A

N/A

N/A
N/A

N/A

N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A

N/A
N/A

N/A

N/A
N/A

N/A

2.16
2.15
2.03
2.03
0.10

1.73
1.72
0.24

0.89
(8.22)

(7.33)

(1.01)
(7.60)

(8.61)

0.025

(a) Income (loss) from discontinued operations reflects the operations and losses on disposal of the Company’s former coal, natural gas, timber
and gold operations. Some of the expenses recorded within discontinued operations through 2002 are continuing after the disposition of
the coal business and are recorded within continuing operations in 2003. The expenses that continue primarily consist of postretirement
and other employee benefits associated with Company-sponsored plans and black lung obligations; and administrative and legal expenses
to oversee residual assets and retained benefit obligations. See note 6. In accordance with APB No. 30, the Company included these
expenses within discontinued operations for periods prior to 2003. Beginning in 2003, expenses related to Company-sponsored pension
and postretirement benefit obligations, black lung obligations and related administrative costs are recorded as a component of continuing
operations. The amount of expenses related to postretirement and other employee benefits associated with the Company-sponsored plans
and black lung obligations that were charged to discontinued operations were $2 million, $53 million, and $48 million for the years ended
2002, 2001, and 2000, respectively. As required by APB No. 30, expenses recorded in 2000 include both the actual expenses for that year
plus an accrual of costs through the expected disposal period, which at the time was expected to be the end of 2001. Expenses recorded
in 2001 represent an estimate of costs for 2002 due to the extension of the expected disposal period to the end of 2002. Future
adjustments to contingent liabilities will continue to be recorded within discontinued operations.

(b) The Company’s results for 2000 include a noncash after-tax charge of $52.0 million, or $1.04 per diluted share, to reflect the cumulative
effect of a change in accounting principle pursuant to guidance issued in Staff Accounting Bulletin No. 101, “Revenue Recognition in
Financial Statements,” by the Securities and Exchange Commission in December 1999 and a related interpretation issued in October 2000.
Pro forma income (loss) per share amounts in 1999 have been adjusted to show the effect of the change in accounting as if it had been in
effect for all periods presented.

(c) Prior to January 14, 2000, the Company was comprised of three separate groups – Pittston Brink’s Group, Pittston BAX Group, and Pittston
Minerals Group. The Pittston Brink’s Group included the Brink’s and BHS operations of the Company. The Pittston BAX Group included the
BAX Global operations of the Company. The Pittston Minerals Group included the coal and other natural resources operations of the
Company. Also, prior to January 14, 2000, the Company had three classes of common stock: Pittston Brink’s Group Common Stock
(“Brink’s Stock”), Pittston BAX Group Common Stock (“BAX Stock”) and Pittston Minerals Group Common Stock (“Minerals Stock”), which
were designed to provide shareholders with separate securities reflecting the performance of the Brink’s Group, the BAX Group and the
Minerals Group, respectively. On December 6, 1999, the Company announced that its Board of Directors approved the elimination of the
tracking stock capital structure by an exchange of all outstanding shares of Minerals Stock and BAX Stock for shares of Brink’s Stock. The
exchange took place on January 14, 2000. The Brink’s Company common shares and per share amounts in 1999 are pro forma, computed
using the same exchange formula used in the January 14, 2000 exchange.

115

The Brink’s Company

BOARD OF DIRECTORS AND SENIOR MANAGEMENT

2003 ANNUAL REPORT

The Board of Directors, as elected by the
shareholders, is divided into three classes, with the
term of office of one of the three classes of
directors expiring each year, and with each class
being elected for a three-year term. Presently,
there are ten members of the Board of Directors,
nine of whom are outside directors with broad
experience in business, finance and public affairs.

Roger G. Ackerman1, 3, 5
Retired Chairman and Chief Executive Officer - Corning
Incorporated (specialty glass, ceramics and
communications)

Betty C. Alewine1, 4, 6
Retired President and Chief Executive Officer - COMSAT
Corporation (provider of global satellite services and
digital networking services and technology)

James R. Barker1, 2, 3
Chairman - The Interlake Steamship Co. (vessel owners
and operators of self unloaders); Vice Chairman -
Mormac Marine Group, Inc. (vessel owners of oil product
carriers); and Vice Chairman - Moran Towing Corporation
(tug and barge owners and operators)

Marc C. Breslawsky1, 2, 5
President and Chief Executive Officer - Imagistics
International Inc. (direct sales, service and marketing of
enterprise office imaging and document solutions)

James L. Broadhead1, 3, 6
Retired Chairman and Chief Executive Officer - FPL
Group, Inc. (public utility holding company)

Michael T. Dan1
Chairman of the Board, President and Chief Executive
Officer – The Brink’s Company

Gerald Grinstein1, 3, 4
Chief Executive Officer – Delta Air Lines, Inc.
(commercial airline); Principal – Madrona Investment
Group LLC (private investment Company); Strategic
Advisor – Madrona Venture Fund (Seattle-based venture
fund)

Ronald M. Gross1, 2, 4
Chairman Emeritus, Former Chairman and Chief
Executive Officer - Rayonier, Inc. (a global supplier of
specialty pulps, timber and wood products)

Carl S. Sloane1, 2, 6
Private Consultant and Ernest L. Arbuckle Professor of
Business Administration, Emeritus, Harvard University,
Graduate School of Business Administration

Ronald L. Turner1, 4, 5
Chairman, President and Chief Executive Officer –
Ceridian Corporation (information services company
engaged in providing human resource outsourcing
services, as well as payment services, to transportation
and retail markets in the U.S., Canada and Europe)

1 Executive Committee
2 Audit and Ethics Committee
3 Compensation and Benefits Committee
4 Corporate Governance and Nominating Committee
5 Finance Committee
6 Pension Committee

THE BRINK’S COMPANY
EXECUTIVE OFFICERS

Michael T. Dan

Chairman of the Board, President and Chief

Executive Officer

James B. Hartough

Vice President - Corporate Finance and Treasurer

Frank T. Lennon
Vice President - Human Resources and Administration

Austin F. Reed
Vice President, General Counsel and Secretary

Robert T. Ritter

Vice President and Chief Financial Officer

116

The Brink’s Company

A COMPANY IN MOTION

The Brink’s Company

Corporate Headquarters
The Brink’s Company
1801 Bayberry Court
P.O. Box 18100
Richmond, VA 23226-8100
Telephone: (804) 289-9600
Facsimile: (804) 289-9770

Annual Meeting
The Annual Meeting of the shareholders
of the company is scheduled to be held
at 1p.m. (EDT) on May 7, 2004, at the
Hotel Inter-Continental The Barclay New York,
111 East 48th Street,
New York, New York 10017.

Inquiries
Communications concerning stock transfer
requirements, lost certificates, dividends, or
change of address should be addressed to
the company’s transfer agent, EquiServe Trust
Company, N.A., at the address listed below, or
by calling (800) 730-6001.

Inquiries from investors and members
of the media should be directed to:

Scott Dudley
Director – Investor Relations
(804) 289-9708

Auditors
KPMG LLP
Richmond, VA

Common Stock Transfer Agent and Registrar
EquiServe Trust Company, N.A.
P.O. Box 43023
Providence, RI 02940-3023
(800) 730-6001
www.equiserve.com

Investor Information
Copies of the 2003 Annual Report for the company;
press releases announcing quarterly results; the 2003
Form 10-K, including the financial statements and the
financial statement schedules thereto, filed with the
Securities and Exchange Commission; and any other
information filed with or furnished to the Securities
and Exchange Commission, are available free of
charge at www.brinkscompany.com, by calling toll free
(877) 275-7488, or by writing to the Investor Relations
Department at The Brink’s Company Corporate
Headquarters using the address provided. The Brink’s
Company has filed the Section 302 Certificates
as exhibits to its Annual Report on Form 10-K.

Environmental Policy
The Brink’s Company is dedicated to compliance
with environmental laws and sound environmental
practices. The company has accordingly developed
broad environmental principles to govern its diverse
operations. The management of each business is
required to adopt and adhere to policies consistent
with these broad principles, and to effectively address
environmental concerns, including those of particular
application to the activities of each business.

Management Objectives

• Recognize environmental management

as a high company priority.

• Establish environmentally sound programs and
practices for conducting operations, taking into
particular consideration the efficient use of
energy and the safe disposal of residual wastes.

• Educate, train and motivate employees to
conduct their activities in an environmentally
responsible manner.

• Contribute to the development of business
and governmental programs that enhance
environmental awareness and protection.

The Brink’s Company and its Subsidiaries are Equal Opportunity Employers.

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The Brink’s Company
1801 Bayberry Court
P.O. Box 18100
Richmond, VA 23226-8100

Telephone (804) 289-9600
Fax (804) 289-9770
www.brinkscompany.com