<Page>
CARRIAGE SERVICES
JOHNSON RICE & COMPANY DEATHCARE CONFERENCE OCTOBER 2, 2002
(NYSE: CSV)
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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COMPANY OVERVIEW
- Fourth largest publicly traded deathcare company
- 149 funeral homes and 30 cemeteries in 29 states
- Successful Fresh Start Program largely complete
- Upgraded leadership is driving new strategies
- Culture of excellence to build a lasting enterprise
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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MISSION STATEMENT
We are committed to being the most
professional, ethical and highest quality
funeral and cemetery service
organization in our industry.
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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GUIDING PRINCIPLES
- Honesty, Integrity and Quality in all that we do
- Hard work, pride of accomplishment and shared success through employee
ownership
- Belief in the power of people through individual initiative and teamwork
- Outstanding service and profitability go hand-in-hand
- Growth of the Company is driven by decentralization and partnership
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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KEY ELEMENTS OF FRESH START
- Downsize corporate organization
- Upgrade corporate and local business leadership
- Change preneed funeral marketing strategy
- Stratify funeral home and cemetery portfolios
- Improve or dispose underperforming businesses
- Adjust carrying value of remaining assets
- Modify debt covenants
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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REVIEW OF FIVE MAJOR FRESH START GOALS
1) Restore credibility to our operating & consolidation model
2) Increase and better align our earnings & cash flow
<Table>
<Caption>
1999 2000 2001 2002E
------ ------ ----- -----
EPS $0.39 $0.06* $0.51 $0.42
Recurring free cash
flow per share ($0.49) $0.12* $0.83 $0.74
</Table>
* before special charges related to Fresh Start
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
<Page>
REVIEW OF FIVE MAJOR FRESH START GOALS
3) Restore market value credibility to balance sheet
4) Reduce debt
5) Reposition company to access capital markets
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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CARRIAGE SERVICES
REVIEW OF OPERATING
PERFORMANCE
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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ACQUISITION SPENDING
($ in millions)
[GRAPH]
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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REVENUE
($ in millions)
[GRAPH]
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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EPS
(Before special and other non-recurring charges)
[GRAPH]
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
<Page>
EBITDA
($ in millions)
[GRAPH]
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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DEBT & CONTINGENT OBLIGATIONS
($ in millions)
[GRAPH]
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
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RECURRING OPERATING FREE CASH FLOW & STOCK PRICE DATA
($ in millions, except stock price)
[GRAPH]
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
<Page>
CARRIAGE SERVICES
WHY OWN THIS STOCK?
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
<Page>
UNIQUE INVESTMENT OPPORTUNITY
- - CSV existing operations visible and predictable
- - CSV offers LBO characteristics without promotion
- - Favorable risk/reward profile
- - Three scenarios with compelling returns
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
<Page>
LONG-TERM BASE CASE SCENARIO
($ in millions, except per share data)
<Table>
<Caption>
5-YR.
12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 CAGR
- ---------------------------------------------------------------------------------------------------------------------------------
REVENUE 154 154 155 161 166 171 2.1%
EBITDA 42 42 42 44 46 48 2.9%
EPS, DILUTED 0.42 0.42 0.46 0.55 0.64 0.75 12.2%
FCF PER SHARE 0.74 0.72 0.66 0.71 0.84 0.97 5.6%
PRE-TAX FCF 13 13 14 18 22 26 15.2%
FREE CASH FLOW 13 13 12 13 15 18 7.0%
DIVESTITURES & OTHER 0 4 4 0 0 0 NM
TOTAL DEBT 150 132 116 104 89 71 -13.7%
</Table>
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
<Page>
BASE CASE ENTERPRISE VALUATION #1
(Estimated $ in millions, except per share data)
<Table>
<Caption>
12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07
- ---------------------------------------------------------------------------------------------------------------------------------
ENTERPRISE VALUE (EV)
DEBT 150 132 116 104 89 71
PREFERRED STOCK 90 90 90 90 90 90
MKT. VALUE EQUITY 53 71 86 99 114 131
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL 293 293 293 293 293 293
EBITDA 42 42 42 44 46 48
DILUTED SHARES OUT. 17.6 17.7 17.9 18.1 18.2 18.2
SCENARIO #1: 1 POINT MULTIPLE DECREASE
- --------------------------------------------------------------------------------------------------------------------------------
EV/EBITDA MULTIPLE 7.0X 7.0X 6.9X 6.6X 6.3X 6.0X
IMPLIED STOCK PRICE $3.00 $4.01 $4.82 $5.47 $6.27 $7.21
ANNUAL % INCREASE 34% 20% 13% 15% 15%
------------------------------------------------------------------
5 - YEAR COMPOUND IRR = 19%
</Table>
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
<Page>
BASE CASE ENTERPRISE VALUATION #2
(Estimated $ in millions, except per share data)
<Table>
<Caption>
12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07
- ----------------------------------------------------------------------------------------------------------------
ENTERPRISE VALUE (EV)
DEBT 150 132 116 104 89 71
PREFERRED STOCK 90 90 90 90 90 90
MKT. VALUE EQUITY 53 71 86 99 114 131
- ----------------------------------------------------------------------------------------------------------------
TOTAL 293 293 293 293 293 293
EBITDA 42 42 42 44 46 48
DILUTED SHARES OUT. 17.6 17.7 17.9 18.1 18.2 18.2
SCENARIO #2: FLAT MULTIPLE
- ----------------------------------------------------------------------------------------------------------------
EV/EBITDA MULTIPLE 7.0X 7.0X 7.0X 7.0X 7.0X 7.0X
IMPLIED ENTERPRISE VALUE 293 290 294 307 322 337
IMPLIED STOCK PRICE $3.00 $3.84 $4.90 $6.29 $7.88 $9.66
ANNUAL % INCREASE 28% 28% 28% 25% 22%
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5 - YEAR COMPOUND IRR = 26%
</Table>
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
<Page>
BASE CASE ENTERPRISE VALUATION #3
(Estimated $ in millions, except per share data)
<Table>
<Caption>
12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07
- ------------------------------------------------------------------------------------------------------------------------------
ENTERPRISE VALUE (EV)
DEBT 150 132 116 104 89 71
PREFERRED STOCK 90 90 90 90 90 90
MKT. VALUE EQUITY 53 71 86 99 114 131
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL 293 293 293 293 293 293
EBITDA 42 42 42 44 46 48
DILUTED SHARES OUT. 17.6 17.7 17.9 18.1 18.2 18.2
SCENARIO #3: 1 POINT MULTIPLE INCREASE
- ------------------------------------------------------------------------------------------------------------------------------
EV/EBITDA MULTIPLE 7.0X 7.2X 7.4X 7.6X 7.8X 8.0X
IMPLIED ENTERPRISE VALUE 293 298 311 334 359 386
IMPLIED STOCK PRICE $3.00 $4.31 $5.84 $7.76 $9.92 $12.31
ANNUAL % INCREASE 44% 36% 33% 28% 24%
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5 - YEAR COMPOUND IRR = 32%
</Table>
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
<Page>
CARRIAGE SERVICES
A unique investment opportunity...
THANK YOU!
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.
<Page>
FORWARD-LOOKING INFORMATION
In addition to historical information, this presentation contains
forward-looking statements made by the management of Carriage Services, Inc.
(the "Company"or "Carriage"). Such statements are typically identified by terms
expressing future expectations or goals. These forward-looking statements,
although made in good faith, are subject to certain risks and uncertainties that
could cause actual results to differ materially from those reflected in these
forward-looking statements. Factors that might cause such a difference include
Carriage's inability to sell businesses and properties for the estimated
proceeds, to achieve the free cash flow from operations in the base
casescenario, or to achieve internal growth from our businesses; adverse changes
in economic and financial market conditions, increasing interest rates, and
restricted credit availability; lower death rates; changing consumer
preferences; competition in our markets from new entrants and existing business
competitors; Carriage's inability to maintain operating ratios within the limits
set forth within our financing arrangements; and changes in government
regulation of the death care industry. Readers are cautioned not to place undue
reliance on these forward-looking statements, which reflect management's
opinions only as of the date hereof. We undertake no obligation to revise or
publicly release the results of any revision of these forward-looking
statements. Readers should carefully review the Cautionary Statements described
in this and other documents we file from time to time with the Securities and
Exchange Commission, including Annual Reports on Form 10-K and Current Reports
on Form 8-K filed by Carriage in the future.
Copyright 2002(C) Carriage Services, Inc. All rights reserved
Forward-looking statements contained herein are subject to certain risks and
uncertainties as further described in the last slide in this presentation.