Service Corporation International (SCI) investor relations material

Historical transformation and strategic focus

• Shifted from hyper-acquisitive international expansion to a disciplined, integrated North American platform focused on return on invested capital and operational excellence.

• Adopted an 8%-12% earnings growth framework since 2005, with major acquisitions like Alderwoods and ongoing integration of acquired assets.

• Emphasizes scale advantages, leveraging a 3,800-person sales force and centralized procurement to drive efficiency and competitive pricing.

• Maintains a customer-centric, compassionate approach while optimizing real estate and inventory for diverse consumer needs.

Operational discipline and talent management

• Implements standardized training via Dignity University and monitors performance through P&Ls and Google star ratings to ensure service quality.

• Uses internal surveys to gather associate feedback and recently shifted sales compensation toward a more fixed structure to improve retention and productivity.

• Lower turnover in sales correlates with higher productivity and fewer cancellations, enhancing customer experience and sales quality.

Growth drivers and revenue strategies

• Holds a $17 billion pre-need backlog, split between trust and insurance contracts, providing stable future revenue.

• Pre-need contracts indexed above current at-need prices, with maturing contracts yielding 8%-10% higher revenue, supporting margin growth.

• Manages high fixed costs to keep them at or below inflation, maximizing margin as pre-need contracts mature.