Service Corporation International (SCI) investor relations material

Business performance and outlook

• Funeral and cemetery segments have normalized post-pandemic, with strong averages and steady growth in contract velocity and value over recent quarters.

• Large cemetery sales are lumpy but make up 10%-15% of pre-need sales, with ongoing efforts to grow this segment.

• Maintenance capital of $160 million is allocated to cemetery property development, including both community and private family mausoleums.

• COVID-19's impact on death rates has normalized, with future volume expected to be flat to slightly down, mirroring pre-pandemic trends.

• Earnings growth framework targets 8%-12%, with 5%-7% from base business, assuming flattish funeral volume and mid-single-digit cemetery pre-need growth.

Market share, growth drivers, and technology

• Holds 17%-18% revenue market share in deathcare, with 12%-13% in funerals and 27%-28% in cemeteries.

• Pre-need growth is driven by a 3,700-3,800 person sales force, CRM analytics, targeted marketing, and ongoing training.

• AI is being piloted for obituary writing, lead routing, and analytics, but broader adoption is still in early stages.

Cremation trends and margin dynamics

• Cremation mix has slowed to a 50-100 basis point annual increase, now at 57%-58%, with less future pressure expected as urban areas approach 70%-80%.

• Each 1% shift in cremation mix impacts EBITDA by about $13 million.

• Cemetery margins have grown from 17%-18% to 33% over 15-20 years, driven by pre-need sales and counselor effectiveness.

• Funeral margins have risen to 21% due to a new marketing agreement, with further growth expected as Baby Boomer demographics increase volume later this decade.