Service Corporation International (SCI) 8-K Regulation FD Disclosure

Service Corporation International North America's largest provider of funeral, cemetery and cremation services $550 Million Senior Notes Offering April 2014 Eric Tanzberger | SVP, CFO and Treasurer Aaron Foley | Managing Director, Assistant Treasurer

Forward-Looking Statements The statements in this presentation that are not historical facts are forward-looking statements made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions that the Company believes are reasonable; however, many important factors could cause the Company's actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of, the Company. For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2013 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com. We assume no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us, whether as a result of new information, future events, or otherwise. 2

Today's Presenters Eric Tanzberger SVP, CFO and Treasurer Aaron Foley Managing Director, Assistant Treasurer 3

Transaction Overview 4

The Offering Issuer Service Corporation International Amount $550 million Issue Senior Unsecured Notes Maturity 2024 (10 years) Security Unsecured Guarantors None Ranking The notes will rank equally in right of payment with all existing and future indebtedness and senior to all existing and future subordinated indebtedness Use of proceeds To refinance certain existing Senior Unsecured Notes and pay related fees and expenses Optional Redemption Non-call five years, callable in year 6 at a premium equal to 50% of coupon, at declining premiums to par thereafter Change of Control Offer to redeem the Notes at 101% of par plus accrued interest Negative Covenants Substantially similar to the Company's existing 5.375% Notes due 2022 Distribution 144A with Registration Rights 5

Sources and Uses and Capitalization PRO-FORMA CAPITALIZATION ($ in millions) ------------------------------------------------------------ Pro Forma 3/31/2014 Adjustments 3/31/2014 ------------------------------------------------------------ SOURCES AND USES ($ in millions) Sources Cash $ 18.4 Cash $ 148.6 $(18.4) $130.2 New Senior Notes Due 2024 550.0 Revolver 75.0 $500 million Revolving credit facility 140.0 75.0 215.0 Total $ 643.4 Term Loan due July 2018 592.5 - 592.5 Senior Guaranteed debt $ 732.5 $ 75.0 $ 807.5 Uses ----------------------------------------------------------------- Repay 6.75% Notes due April 2015 $ 136.5 ----------------------------------------------------------------- Repay 6.5% Notes due April 2019 200.0 ----------------------------------------------------------------- Repay 7.00% Notes due May 2019 250.0 ----------------------------------------------------------------- Accrued interest on Senior Notes due April 20151 1.2 ----------------------------------------------------------------- Accrued interest on Senior Notes due April 20191 1.1 ----------------------------------------------------------------- Accrued interest on Senior Notes due May 20191 8.8 ----------------------------------------------------------------- Call/Tender Premium 34.8 ----------------------------------------------------------------- Estimated fees and expenses2 11.0 Total $ 643.4 ----------------------------------------------------------------- 3.125% Convertible Senior Notes due July 2014 0.1 0.1 6.750% Senior Notes due April 2015 136.5 (136.5) - 6.750% Senior Notes due April 2016 197.4 197.4 3.375% Convertible Senior Notes July 2016 0.2 0.2 7.000% Senior Notes due June 2017 295.0 295.0 7.625% Senior Notes due October 2018 250.0 250.0 6.500% Senior Notes due April 2019 200.0 (200.0) - 7.000% Senior Notes due May 2019 250.0 (250.0) - Obligations under capital leases 192.5 192.5 Mortgage notes and other debt 4.7 4.7 Unamortized premiums (discounts), net 5.8 (9.2) (3.4) 4.500% Senior Notes due November 2020 200.0 200.0 8.000% Senior Notes due November 2021 150.0 150.0 5.375% Senior Notes due November 2022 425.0 425.0 ------------------------------------------------------------- New Senior Notes due May 2024 - 550.0 550.0 ------------------------------------------------------------- 7.500% Senior Notes due April 2027 200.0 200.0 ------------------------------------------------------------- Total Senior Unsecured notes $ 2,304.2 $ (36.5) $ 2,267.7 ------------------------------------------- Total debt 3,239.6 29.3 3,269.0 Net debt3 ------------------------------------------- 3,122.6 3,170.4 Stockholders' Equity 1,436.4 (30.1) 1,406.3 ----------------------------------------------------------- Non-controlling interests 2.8 2.8 ------------------------------------------- Total capitalization 4,678.8 (0.8) 4,678.1 ---------------------------------------------------------- 1 Interest accrued on Senior Notes since last payment date through redemption date 2 Includes gross spread, Issuer's counsel fees, printing and other miscellaneous expenses 3 Net debt, as defined in Credit Facility, represents Total Debt less Cash plus outstanding letters of credit of $31.6M 6

Business and Industry Overview 7

Key credit highlights Predominant player in stable funeral and cemetery industry with unparalleled network and scale Recent $1.5 billion acquisition of Stewart Enterprises positions us well for growth in 2014 and 2015 Pro forma revenues including Stewart of nearly $3 billion or ~16% share of industry revenues Opportunity for differential growth through preneed sales, which is not capital intensive Annual funeral and cemetery preneed sales are expected to exceed $1.5 billion in 2014 Backlog of future revenues of approx. $9 billion or 3x annual revenues and primarily supported by trust fund investments or third party life insurance policies Robust and consistent free cash flow (FCF) as we expect to trend toward the higher end of our guidance range of $285 - $345 million range in 2014 Strong liquidity with more than $475 million of total cash and credit facility availability at March 31, 2014 Favorable debt maturity profile offering significant financial flexibility Poised to benefit from the aging of America 8

Our competitive strengths Unparalled Network o 1,638 funeral homes and 515 cemeteries (55% combos*) o 43 states, 8 Canadian provinces, District of Columbia and Puerto Rico Size and Scale o Sharing of personnel, vehicles and other resources o Centralized or outsourced operating and accounting functions o Purchasing power o Preneed sales opportunity Education and Training o Premier education platform for our 25,700 associates o Mix of online, classroom, and mentoring programs for all levels Multi-Brand Portfolio o National brand called Dignity Memorial(R) o Other key brands include Neptune SocietyTM/Trident SocietyTM, National Cremation Society(R), Advantage(R) Funeral Homes, and Funeraria Del Angel(TM) 9

Update on Stewart acquisition The transaction, valued at $1.5 billion, closed on December 23, 2013 and is expected to contribute meaningfully to financial results in 2014 and 2015 Synergies We originally estimated $60 million of cost savings (half in 2014 and half in 2015) Additional synergies of $15 to $20 million have been identified bringing total to $75-$80 million; we expect roughly half to be realized in 2014 As we continue with our operational and sales integration, the potential exists for additional revenue synergies FTC Process Level of divestitures required were more than we anticipated, but based on expected proceeds the valuation metrics remain intact After tax proceeds are estimated to range from $315-$340M; we anticipate majority of deals to close mid year More than 15 packages; approx. 1/2 have FTC applications submitted; others in various stages of contract negotiations and due diligence 10

Normalized EPS grew 15% in 2013 and exceeded our expectations; Anticipating continued strong growth in 2014 Recurring Normalized Earnings Per Share $1.10 $1.05 $1.00 $0.90 $0.80 $0.70 $.65 $.80 $.92 $0.06 1 $1.05 $0.60 $0.50 $0.65 $0.80 $0.86 Recurring EPS excluding impact of divestitures $0.40 2011 2012 2013 2014 ($1.00 - $1.10) 1 EPS Contribution from FTC Divestitures of SCI locations Trending toward upper end The growth in 2013 normalized EPS was achieved in an environment where we were precluded from deploying capital strategically for the benefit of our shareholders due to the pending acquisition of Stewart Normalized earnings per share is a Non-GAAP financial measure. Please see appendix for a reconciliation to the appropriate GAAP measure and for other disclosures. 11

Keys to 2014 success and thoughts about 2015 2014 2015 o Sales Success - We expect another strong year of growth in preneed funeral and cemetery sales (up mid to high single digit % range) o Stewart Synergies - We expect to realize roughly half of the total $75- $80 million of synergies in 2014 o SCI Direct - We expect continued growth in recognized preneed revenues from our direct cremation sales business o Lower interest expense by deleveraging the business o Continued sales success benefitting from growing Stewart's preneed cemetery sales at a more rapid pace than historical, favorable demographics, and continued expansion of sales force o Remaining synergies of approximately half of the total $75- $80 million of synergies expected to be realized in 2015 o High potential for additional revenue synergies o Lower interest expense by deleveraging the business 12

Financial Overview 13

SCI historical financial overview Revenue ($mm) Free Cash Flow ($mm) $3,000 $2,500 $2,000 $2,054 $2,191 $2,316 $2,410 $2,556 $2,651 $350 $300 $250 $304 $265 $282 $272 $336 $344 $1,500 2009A 2010A 2011A 2012A 2013A Q1'14 LTM $200 2009A 2010A 2011A 2012A 2013A Q1'14 LTM Note: Free cash flow defined as cash flow from operations less capex Note: EBITDA is calculated as defined by our debt covenant. 14

Robust and consistent cash flow continues despite growing headwind from cash taxes Free Cash Flow $29(1) $272 $336 $315 $23 $26 $55 2012 2013 2014E FCF Incremental Cash Taxes Cash Taxes ($285 - $345) Trending toward upper end (1) - Reflects incremental cash taxes from 2013 to 2014 Free cash flow is a Non-GAAP financial measure. Please see appendix for a reconciliation to the appropriate GAAP measure and for other disclosures. 15

Strong financial position and liquidity post new debt issuance Cash of approximately $149 million at March 31, 2014 Pro-forma credit availability of $253 million o At March 31, the facility had $140 million of borrowings, which increases pro-forma for this transaction to $215 million Total debt at 3/31/2014 of $3.24 billion Leverage per credit agreement (Net Debt/EBITDA) was 3.95x at 3/31/2014 Pro-forma for this transaction we have a favorable debt maturity profile with no meaningful maturities until April 2016 16

We have maintained substantial and consistent liquidity in addition to stable cash flow We target having a minimum liquidity of $300 - $350 million Liquidity (in millions) Cash on Hand plus Credit Facility Availability $525 $529 $531 $473 $564 $383 $383 $397 $203 $402 $419 $380 $358 $253 2008 2009 2010 2011 2012 2013 Pro-forma 3/31/2014 Credit Facility Availability Cash on hand Note: Liquidity declined in 2009 as we used our credit facility to prepay our privately placed $150 million Senior Notes due November 2011. This was subsequently refinanced in 2010. 17

Key credit metrics Debt / EBITDA 5.00X 4.00X 3.53x 3.25x 3.15x 3.10x 4.05x 3.95x 2009 2010 2011 2012 2013 Q1'14 LTM Interest coverage 3.92x 4.21x 4.35x 3.00X 4.69x 6.21x 5.69x 2009 2010 2011 2012 2013 Q1'14 LTM Note: Debt / EBITDA and Interest coverage are calculated in accordance with SCI's Credit Agreement 18

Actions we have taken have resulted in a strong financial position and favorable debt maturity profile Debt Maturity Profile at March 31, 2014 Will service this debt from STEI divestiture proceeds 6.750% Senior Notes 6.750% Senior Notes 7.625% Senior Notes 7.000% Senior Notes 6.500% Senior Notes $200 7.000% Senior Notes 4.500% Senior Notes 8.000% Senior Notes 5.375% Senior Notes Acquired Debt Unsecured Senior Notes Minimum Term Loan Payments Revolver Funding 7.500% Senior Notes 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2027 Pro-forma Debt Maturity Profile at March 31, 2014 Unsecured Senior Notes Minimum Term Loan Payments Revolver Funding Will service this debt from STEI divestiture proceeds 6.75% Senior Notes 6.75% Senior Notes 7.625% Senior Notes 7.000% Senior Notes 6.500% Senior Notes $200 7.000% Senior Notes 4.500% Senior Notes 8.000% Senior Notes 5.375% Senior Notes New Notes Issuance Refinanced Note NEW Senior Notes 7.500% Senior Notes $136 $250 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2027 19

Appendix: Non-GAAP Financial Measures 20

Non-GAAP Financial Measures This information should not be considered in isolation or as a substitute for related GAAP measures. Additionally, these measures as calculated by the Company may not be comparable to similarly titled measures used by other companies. Normalized EPS or Earnings from continuing operations excluding special items We use Earnings from continuing operations excluding special items (Normalized EPS) as an underlying operational performance measure of the continuing operations of the business and to have a basis to compare underlying operating results to prior and future periods. We make adjustments to net income (a GAAP measure) to remove non-recurring charges and credits. We believe these adjustments are relevant in evaluating the overall performance of the business. Adjusted cash flow from operations and Net cash provided by operating activities excluding special items We use Adjusted cash flow from operations, or Net cash provided by operating activities, as an underlying operational performance measure of the continuing operations of the business and to have a basis to compare underlying cash flow results to prior and future periods. We make adjustments to cash flow from operations (a GAAP measure) to remove non- recurring receipts and payments. We believe these adjustments are relevant in evaluating the overall performance of the business. Free cash flow We define Free cash flow as Adjusted cash flow from operations minus expenditures for capital improvements at existing locations and expenditures for the development of cemetery property, collectively referred to as Recurring Capex. We use free cash flow to assess the financial performance of the Company. We believe that Free cash flow is useful to investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations, such as investment in the Company's existing businesses. Further, free cash flow facilitates our ability to strengthen the Company's balance sheet, to repay our debt obligations, pay cash dividends, and to repurchase our common shares. We also believe the presentation of this measure will enhance the investors' ability to analyze trends in the business and evaluate our underlying performance relative to other companies in the industry. 21

EBITDA and Adjusted EBITDA This information should not be considered in isolation or as a substitute for related GAAP measures. Additionally, these measures as calculated by the Company may not be comparable to similarly titled measures used by other companies. o We use EBITDA as an underlying operational performance measure of the continuing operations of the business and to have a basis to compare underlying operating results to prior and future periods o To calculate EBITDA, we make adjustments to net income (a GAAP measure) to remove provision for income taxes, interest expense and depreciation and amortization expense o Adjusted EBITDA is a financial measure calculated in accordance with our credit agreement, and represents EBITDA further adjusted to reflect the impact of o Gains or losses on the early extinguishment of debt o Gains or losses on divestitures and impairment charges, net o Non-cash stock compensation expenses o Other operating income, net o Acquisitions and dispositions o Other non-recurring expenses o We believe that EBITDA and Adjusted EBITDA provide investors and its lenders with additional information to measure our financial performance and evaluate our ability to service its debt o Our calculations of EBITDA and Adjusted EBITDA are non-GAAP measures and are not necessarily comparable to other similarly titled measures of other companies. In addition, EBITDA and Adjusted EBITDA do not include interest expense and the replacement costs of assets, both of which can impact its ability to generate profits and cash flows 22

Normalized EPS (In millions, except diluted EPS) Twelve Months Ended December 31, Net income attributable to common stockholders, as reported After-tax reconciling items: Impact of divestitures and impairment charges, net System and process transition costs Stewart acquisition and transition costs Gain on early extinguishment of debt, net Legal defense fees and other matters Change in certain tax reserves Earnings from continuing operations and diluted earnings per share excluding special items (normalized EPS) Diluted weighted average shares outstanding (in thousands) 2013 2012 Net Income Diluted EPS Net Income Diluted EPS $ 143.8 $ 0.67 $ 152.5 $ 0.70 4.9 0.02 1.6 0.01 5.3 0.02 5.9 0.02 33.3 0.16 -- -- (0.3) -- 14.4 0.07 7.4 0.03 -- -- 4.9 0.02 0.6 -- $ 199.3 $ 0.92 $ 175.0 $ 0.80 216,014 219,066 2011 ------------------------------- Net Diluted Income EPS ------------------------------- $ 144.9 $ 0.61 1.8 0.01 1.4 0.01 -- -- 2.2 0.01 -- -- 2.6 0.01 ------------------------------- $ 152.9 $ 0.65 ------------------------------- 236,669 23

Normalized EPS (continued) (In millions, except diluted EPS) Three Months Ended March 31, Net income attributable to common stockholders, as reported After-tax reconciling items: Impact of divestitures and impairment charges, net System and process transition costs Stewart acquisition and transition costs Legal defense and settlements Change in certain tax reserves Earnings from continuing operations and diluted earnings per share excluding special items (normalized EPS) Diluted weighted average shares outstanding (in thousands) 2014 Net Diluted Income EPS $ 41.1 $ 0.19 1.4 0.01 1.9 0.01 10.1 0.05 7.1 0.03 (0.8) (0.01) $ 60.8 $ 0.28 217,231 2013 ----------------------------- Net Diluted Income EPS ----------------------------- $ 57.6 $ 0.27 0.6 - 0.7 - - - 0.8 - 0.9 0.01 ----------------------------- $ 60.6 $ 0.28 ----------------------------- 215,208 24

Free Cash Flow Twelve Months Ended December 31, (In millions) 2013 2012 2011 2010 Net cash provided by operating activities, as reported $ 384.7 $ 369.2 388.1 354.4 System and process transition costs 3.3 4.7 2.6 5.1 Stewart acquisition and transition costs 45.4 -- -- -- Legal defense fees and other matters 6.8 -- -- -- IRS audit payment -- 6.6 -- -- Net cash provided by operating activities excluding special $ 440.2 $ 380.5 $ 390.7 $ 359.5 items (adjusted cash flow from operations) Capital improvements at existing locations (61.4) (66.1) (66.1) (58.7) Development of cemetery property (42.5) (42.9) (42.9) (35.4) Free cash flow $ 336.3 $ 271.5 $ 281.7 $ 265.4 Net cash used in investing activities (1,156.8) (175.0) (190.3) (279.7) Net cash (provided by) used in financing activities 825.1 (231.5) (238.7) (88.2) --------------- 2009 --------------- 372.1 -- -- --------------- $ 372.1 --------------- (37.4) (30.5) --------------- $ 304.2 --------------- (152.5) (178.4) 25

Free cash flow (continued) Net cash provided by operating activities, as reported System and process transition costs Stewart acquisition and transition costs Legal defense fees and other matters Excess tax benefit from share based awards Net cash provided by operating activities, excluding special items (adjusted cash flows from operations) Capital improvements at existing locations Development of cemetery property Free cash flow Net cash used in investing activities Net cash used in (provided by) financing activities --------------------------------- Three Months Ended March 31, --------------------------------- 2014 $ 127.9 0.2 28.6 0.3 6.7 $ 163.7 (12.1) (10.3) $ 141.3 $ (35.6) $ (86.6) 2013 ----------------- $ 151.1 1.7 - 1.3 0.8 ----------------- $ 154.9 ----------------- (14.7) (6.2) ----------------- $ 134.0 ----------------- $ (20.4) $ (34.3) 26

Outlook for 2014 Low Midpoint High Net cash provided by operating activities excluding special items (adjusted cash flow from operations) (A) $430 $455 $480 Diluted earnings per share from continuing operations excluding special items (Normalized EPS) (B) $1.00 $1.05 $1.10 Diluted weighted average shares (000s) 217,000 (A) Reconciliations to GAAP net cash provided by operating activities are not provided for these forward-looking estimates because GAAP net cash provided by operating activities for the fiscal year ending December 31, 2014 are not accessible and reconciling information is not available without unreasonable effort. We are unable to predict changes in assets and liabilities; future acquisition and transition costs, system and process transitions costs; potential tax adjustments to reserves, payments, credits or refunds; potential legal defense costs or settlements of litigation or the recognition of receivables for insurance recoveries associated with litigation, one-time costs incurred to achieve the Stewart acquisition synergies and these amounts could be material, such that the amount of net cash provided by operating activities would vary substantially from the amount of projected net cash provided by operating activities excluding special items. (B) Reconciliations to GAAP Net income per share are not provided for these forward-looking estimates because GAAP Net income per share for the fiscal year ending December 31, 2014 are not accessible and reconciling information is not available without unreasonable effort. We are not able to predict future system and process transitions costs; acquisition and transition costs, gains/losses and impairment charges associated with asset dispositions; gains/losses associated with the early extinguishment of debt or foreign currency transactions; potential tax adjustments to reserves, payments, credits or refunds;; potential costs associated with settlements of litigation or the recognition of receivables for insurance recoveries associated with litigation, and these amounts could be material, such that the amount of Net income per share would vary substantially from the amount of projected Normalized earnings per share. 27