Test of New Master

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JPMorgan2007 High Yield ConferenceMiami,
FLJanuary 22, 2007
Service Corporation International
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Service Corporation International

Tom Ryan President and CEO
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SCI strengths and investment considerations

• Market leader in the death care industry
• Acquisition of Alderwoods is value-enhancing
  transaction
• Competitive advantage due to size, unparalleled
  network and national brand strategy
• Diverse geographic exposure
• Stable industry fundamentals
• Large backlog of preneed revenues
• Strong cash flow
• Attractive credit profile

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Today SCI is well-positioned for profitable growth
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Approach the business by customer segment

• Consumer landscape is changing (from products to
  experience/value)
• Segment our consumers based upon their needs
• Tailor our business operating strategies to
  consumer segments
• Drop our one-size-fits-all approach
• Focus resources on most profitable segments
• Respond better to changing demographic trends
• Recently hired a Chief Marketing Officer who will
  help to further develop segmentation strategies

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Leverage scale drive operating discipline

• Align pricing strategies with customer segments
  centralize and simplify pricing process
• Focus pricing on service and cemetery property,
  our competitive advantages
• Implement operating standards
• Develop clear yet flexible benchmarks and shared
  best practices for increased productivity
• Focus preneed efforts on right product for right
  customer
• Align incentives with product value to SCI
  reward incrementality
• Pursue affinity opportunities and more fully
  utilize our purchasing power

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Manage the footprint

• Categorize our current footprint based on
  customer segmentation model
• Target expansion growth differentially focusing
  on highest return segments
• FUNERAL Target segments that value high quality
  service/memorialization, our core competency
• CEMETERY Target combos and attractive
  stand-alones
• Prioritize capital spending according to consumer
  model
• Proactive funeral home facility capex to ensure
  facilities meet consumer expectations
• Cemetery maintenance standards based on revenue,
  life-cycle stage and endowment care trust fund
  levels

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Alderwoods AcquisitionCompelling transaction

• Two largest companies in the North American
  deathcare industry approx 14 market share
• Fully consistent with SCIs long-term strategy
• Significant cost saving and revenue synergy
  opportunities
• Investment returns meaningfully exceed SCIs
  weighted average cost of capital
• Accretive to operating cash flow and earnings per
  share excluding one-time costs
• Strong cash flow generation and planned
  divestitures reduce financial risk
• Increased preneed backlog to almost 7 billion
  enhances long-term revenue stability
• Expect to be within desired leveraged ratios by
  2008

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Alderwoods AcquisitionStrong North American
presence
Combined company more than 2,000 funeral homes
and cemeteries in 46 States, 8 Canadian
provinces, District of Columbia and Puerto Rico
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Alderwoods AcquisitionSignificant synergy
opportunities

• Original expectations of 60 to 70 million
  within 18 months
• Duplicate systems and infrastructure
• Management structure duplication
• Senior executive and public company costs
• Currently expect cost saving synergies to exceed
  this original range and to be realized quicker
  than 18 months
• Anticipate additional synergies primarily
  associated with purchasing power
• Anticipate revenue opportunities primarily due to
  pricing realignment from products to services

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Near term expectations

• Significant focus on integration of Alderwoods
• Build up of net cash balances due to asset sales
  and cash flows
• Continued volume loss associated with the exit
  from low priced immediate cremation activities in
  certain markets
• Continued strong increases in funeral averages
  due to strategic pricing initiatives
• Favorable impact from operating staffing metrics
• Improvements in cemetery sales production and
  efficiencies in selling cost metrics

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Service Corporation International

Eric Tanzberger Senior Vice President and CFO
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Strong financial position

• Cash on hand of approx 60 million
• Total debt of approx 2.0 billion
• Asset sales will expedite deleveraging
• FTC mandated and other SCI divestitures are
  anticipated to generate 200 million of proceeds
  in the near future, while not impacting EBITDA
  materially
• Expect to sell Mayflower (Alderwoods insurance
  company) for approx 65 million
• Comprehensive review of combined properties
  expected to result in additional divestitures
• With debt reduction in 2007 and full effect of
  anticipated synergies from the Alderwoods
  transaction, we expect Debt/EBITDA to range
  between 3.0 and 3.5

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Target Ratios
Note 2008E assumes no share repurchases or debt
re-financings
1 Cash flows from operations (excluding unusual
items) less capital expenditures (excluding
expenditures to construct new funeral home
facilities and other growth capital) 2 Total debt
less cash on hand 3 Net debt (as defined above)
plus stockholders equity
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New maturity profile
Existing Maturity schedule ( in mm)
Pro Forma Maturity schedule ( in mm)
1 Term loan anticipated to be retired with asset
sales proceeds and free cash flowNote Schedules
exclude approx. 21mm in convertible debentures
maturing through 2013 and approx. 121mm of other
debt consisting primarily of capital leases,
mortgage notes and unamortized discounts
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Upcoming reporting schedule

• Expect to provide 2007 guidance/outlook on
  February 15
• Expect to report Q4 and fiscal 2006 results on
  February 28
• Expect to be at high end or exceed our 2006
  guidance ranges for EPS and cash flow from
  operations
• EPS of .30 - .34 (.32 - .36 revised for
  France distribution)
• Cash flow from operations of 290 - 315 million

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A bright future ahead

• Predominant leader in a stable industry
• Significant cash flows, liquidity and financial
  flexibility
• Short-term growth opportunity
• Successfully integrating the Alderwoods
  acquisition
• Utilizing more centralization and standardization
  to take advantage of our scale
• Aligning pricing and preneed strategies with
  customer segments and our competitive advantages
• Long-term differential growth opportunity
• Tailoring our business approach by customer
  segment
• Footprint expansion in customer segments that we
  excel

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JPMorgan2007 High Yield ConferenceMiami,
FLJanuary 22, 2007
Service Corporation International