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2021 Annual Shareholder Letter - The Best is Yet to Come

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The Best is Yet to Come 2021 Annual Report

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17 18 19 20 21 17 18 19 20 21 1 25 1 17 1 39 14 0 9 9 12 5 17 18 19 20 21 1 86 17 18 19 20 21 126 2 76 6 70 2 68 7 104 3 375 9 329 4 274 1 258 1 268 0 In Millions Adjusted Diluted Earnings Per Share 3 00 Adjusted Return on Equity 30 Adjusted Consolidated EBITDA In Millions 9 7 Total Revenue Total Return 2012 2021 YTD December Total Return includes stock price appreciation and dividend reinvestment Carriage Services CSV 1268 Service Corporation Int SCI 789 Russell 3000 Index RAY 453 1268 789 453 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

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In the best selling iconic book Good To Great E LP ROOLQV LQ HDFK RI WKH HOHYHQ Good To Great FRPSDQLHV UHVHDUFKHG E LP DQG KLV WHDP KDG D 7UDQVLWLRQ DWH DIWHU ZKLFK WKHLU VKDUH SULFH JURZWK EHJDQ WR FRPSRXQG DW PXFK KLJKHU ORQJ WHUP UDWHV FRPSDUHG WR WKHLU JRRG VHFWRU SHHUV V SUHYLRXVO H SODLQHG LQ P 6KDUHKROGHU HWWHU WKDW WUDQVLWLRQ GDWH IRU DUULDJH ZDV 1RYHPEHU DIWHU ZKLFK ZH ODXQFKHG RQ DQXDU WKH LUVW LYH

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FDQ VHH PDQ VLPLODULWLHV RI DUULDJH WRGD WR HUNVKLUH DWKDZD PD EH WKLUW WR IRUW HDUV DJR DQG even now while there are also distinct differences as well since we are restricted to the funeral and cemetery LQGXVWU DQG KDYH DOO RI WKH VXSSRUW IXQFWLRQV DQG SHUVRQQHO DW RXU RXVWRQ 6XSSRUW HQWHU IRU DOO WKH LQGLYLGXDO EXVLQHVVHV LQ RXU SRUWIROLR WKH KDYH SHRSOH DQG QR VXSSRUW SHUVRQQHO XW RQH VLPLODULW VWDQGV WDOO DERYH DOO WKH UHVW DQG LV ZRUWK PHQWLRQLQJ LQ WKLV LQWURGXFWLRQ WR RXU 6KDUHKROGHU HWWHU Q KLV DXWKRUL HG autobiography by Alice Schroeder The Snowball Warren Buffett and the Business of Life DUUHQ LV TXRWHG DV GHVFULELQJ KLV MRE DW HUNVKLUH DWKDZD DV IROORZV I feel like I m on my back and there s the Sistine Chapel and I m painting away I like it when people say Gee that s a pretty good looking painting But it s my painting and when somebody says Why don t you use more red instead of blue Good bye And I don t care what they sell it IRU 7KH SDLQWLQJ LWVHOI ZLOO QHYHU EH QLVKHG 7KDW V RQH RI WKH JUHDW WKLQJV DERXW LW DUUHQ V RXQGHU V YLHZ RI HUNVKLUH DWKDZD SHUIHFWO FDSWXUHV P WKLQNLQJ DERXW DUULDJH ZKLFK LV why we say internally that our Mission Vision of Being The Best means that we can always get better and therefore we are on a Good To Great Journey WKDW QHYHU HQGV KDYH KDG WR VD RRG E H WR PDQ RSHUDWLRQDO QDQFLDO DQG RWKHU H HFXWLYHV DQG RDUG 0HPEHUV RYHU WKH ODVW WKLUW HDUV LQFOXGLQJ P WKUHH FR IRXQGHUV EHFDXVH WKH HLWKHU GLGQ W OLNH WKH ZD ZDQWHG WR SDLQW WKH DUULDJH 6LVWLQH KDSHO RU HYHQ XQGHUVWDQG WKH LGHDV DQG FRQFHSWV UHODWHG WR WKH SDLQWLQJ 7KH ZDQWHG WR XVH GLIIHUHQW FRORUV DQG VKDSHV WKDW RIWHQ ZHUH WKH RSSRVLWH RI ZKHUH P YLVLRQ RI WKH SDLQWLQJ ZDV JRLQJ I have often wondered whether I could have somehow sped up or short cut the almost twenty years of HYROXWLRQDU FKDQJH ZLWKLQ DOO DUHDV RI DUULDJH DIWHU UVW LQWURGXFLQJ WKH LGHD RI D XQHUDO 6WDQGDUGV 2SHUDWLQJ 0RGHO LQ XJXVW KDYH FRQFOXGHG HDFK WLPH XSRQ UH HFWLRQ WKDW WKH SURFHVV RI H SHULPHQWDWLRQ and adaptation while agonizingly slow in hindsight was absolutely critical to the process of painting the DUULDJH 6LVWLQH KDSHO DV LW H LVWV WRGD KDYH RIWHQ VDLG WKDW WKH HYROXWLRQDU OHDUQLQJ MRXUQH UHODWHG WR RXU 6WDQGDUGV 2SHUDWLQJ 0RGHO LQYROYHG DSSOLFDWLRQ RI WKH VFLHQWL F PHWKRG RI H SHULPHQWDWLRQ DQG REVHUYDWLRQ and went completely against the grain of how most people think and behave after achieving success VRPHZKHUH HOVH 2Q 3DJH RI P 6KDUHKROGHU HWWHU UHIHUHQFHG UHDGLQJ WKH ERRN Harnessing Complexity with the subtitle 2UJDQL DWLRQDO PSOLFDWLRQV RI D 6FLHQWL F URQWLHU FR DXWKRUHG E 5REHUW HOURG DQG 0LFKDHO RKHQ LQ KHQ UHDG WKLV ERRN DIWHU D UHIHUHQFH RQ WKH ZRUN RI 5REHUW HOURG E 0DUN HRQDUG LQ KLV RQVWHOODWLRQ 6RIWZDUH 6KDUHKROGHU HWWHU ZDV HQFRXUDJHG DQG HYHQ H FLWHG WKDW VRPH RI WKH FRUH LGHDV DQG FRQFHSWV RI DUULDJH V 6WDQGDUGV 2SHUDWLQJ 0RGHO 3DUWQHUVKLS 2UJDQL DWLRQDO 6WUXFWXUH 5DGLFDO HFHQWUDOL DWLRQ RI HFLVLRQ 0DNLQJ HDGHU 2ZQHUVKLS 0LQGVHW DQG QFHQWLYHV HWF ZHUH VR FORVHO DOLJQHG ZLWK WKH VFLHQWL F QGLQJV LQ WKLV ERRN After the High Performance Transformation WKDW RXU OHDGHUVKLS WHDPV KDYH H HFXWHG DW DUULDJH VLQFH KDYH FRQFOXGHG WKDW ZH KDYH HYROYHG LQWR D UDWKHU DGYDQFHG VWDWH RI KDUQHVVLQJ WKH KLJK SHUIRUPDQFH FRPSOH LW RI VXFFHVVIXOO RSHUDWLQJ DQG FRQVROLGDWLQJ WKH KLJKO IUDJPHQWHG IXQHUDO DQG FHPHWHU LQGXVWU IRU WKH KXJH EHQH W RYHU WLPH RI DOO RXU OHDGHU RZQHUV DQG HPSOR HHV ORQJ WHUP VKDUHKROGHUV bondholders banks suppliers and especially the client families and communities that we are privileged and KRQRUHG WR VHUYH 7KLV SURFHVV LV EHDXWLIXOO GHSLFWHG RQ WKH IURQW FRYHU RI WKLV QQXDO 5HSRUW LQ WKH IRUP RI our Carriage Flywheel 6LVWLQH KDSHO EHLQJ SDLQWHG E D 0DVWHU 3DLQWHU 1HYHU LQ RXU KLVWRU FRXOG KDYH LPDJLQHG WKDW DUULDJH ZRXOG EH DV IXOO DV LW LV WRGD RI 3OD HU HDGHUV DW DOO OHYHOV DQG LQ DOO IXQFWLRQV ZLWK WKH OHDGHUVKLS DOLJQPHQW DQG SDLQWLQJ VNLOOV WR FRQWLQXH WKH KLJK SHUIRUPDQFH JURZWK DQG VXVWDLQDELOLW RI DUULDJH DV DQ 2SHUDWLQJ RQVROLGDWLRQ DQG 9DOXH UHDWLRQ 3ODWIRUP IRU WKH IXQHUDO DQG FHPHWHU LQGXVWULHV 7KH EHVW QHZV RI DOO LV WKDW WKH 0DVWHU 3DLQWHU RQ WKH IURQW FRYHU RI DUULDJH V 6KDUHKROGHU HWWHU QQXDO 5HSRUW LV QR ORQJHU VROHO PH EXW UHSUHVHQWV DOO RI WKH OHDGHUV ZLWKLQ DUULDJH WKDW have AN UNBREAKABLE UNION OF BELIEF that THE BEST IS YET TO COME Page 2 CARRIAGE SERVICES 2021 Annual Report

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2021 Shareholder Letter XOO

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VLQFH KDG WR RQFH DJDLQ VWHS EDFN LQWR WKH UROH RI KLHI 2SHUDWLQJ 2I FHU LQ 6HSWHPEHU 7KLV IXOO HDU HDUQLQJV UHOHDVH ZLOO DOVR IRU WKH UVW WLPH UHSUHVHQW RXU 6KDUHKROGHU HWWHU FRYHULQJ WKH UHPDUNDEOH High Performance Transformation in our cemetery portfolio funeral portfolio realignment of short and long WHUP LQFHQWLYHV ZLWK VXVWDLQHG KLJK RSHUDWLQJ DQG QDQFLDO SHUIRUPDQFH VWDQGDUGV DV ZHOO DV WUDQVIRUPDWLRQ DQG FXOWXUDO DOLJQPHQW RI RXU RXVWRQ 6XSSRUW HQWHU HSDUWPHQWV DQG 7HDPV IURP WR ZLOO EHJLQ E VKDULQJ WKH KLJKOLJKWV RI RXU HDU DQG UHFRUG SHUIRUPDQFH LQ DOO DUHDV RI RXU FRPSDQ 7KH JUHDWHVW VWUDWHJLF DFKLHYHPHQW RI WKLV SDVW HDU ZDV WKDW IRUPDOO HVWDEOLVKHG RQ XQH D VXFFHVVLRQ SODQ IRUPDW IRU WKH IXWXUH HFXWLYH HDGHUV RI DUULDJH ZKHQ DP QR ORQJHU KHUH DOWKRXJK KDYH QR SODQV RU KHDOWK UHDVRQV WR QRW EH KHUH VHUYLQJ DV KDLUPDQ DQG 2 RYHU WKH QH W YH WR WHQ HDUV RI RSWLPXP YDOXH FUHDWLRQ 2Q XQH H WHQVLYH SUHVV UHOHDVH RQ WKHLU LQGLYLGXDO EDFNJURXQGV DQG TXDOL FDWLRQV SURPRWHG DUORV 4XH DGD WR HFXWLYH 9LFH 3UHVLGHQW DQG KLHI 2SHUDWLQJ 2I FHU 6WHYH 0HW JHU WR HFXWLYH 9LFH 3UHVLGHQW DQG KLHI GPLQLVWUDWLYH 2I FHU DQG HQ ULQN WR HFXWLYH 9LFH 3UHVLGHQW DQG 3ULQFLSDO LQDQFLDO 2I FHU LQ DGGLWLRQ WR WKHLU RWKHU UHVSRQVLELOLWLHV DQG UROHV DQG WR PHPEHUVKLS LQ RXU QHZ 6WUDWHJLF 9LVLRQ DQG 3ULQFLSOHV URXS 693 FKDLUHG E PH DVHG RQ KLV DPD LQJ DFKLHYHPHQWV DQG FRQWULEXWLRQV WKDW DUORV KDV PDGH WR DUULDJH VLQFH MRLQLQJ RXU Good To Great Journey RQ XQH DP YHU KRQRUHG WR DQQRXQFH WKDW KH KDV DOVR EHHQ SURPRWHG WR 3UHVLGHQW DQG KLHI 2SHUDWLQJ 2I FHU HIIHFWLYH WRGD JRW WKH ELJJHVW SURPRWLRQ ZLWK WKHVH VXFFHVVLRQ SODQ PRYHV DV FDQ QRZ DOORFDWH P WLPH WR LWV KLJKHVW DQG EHVW XVH ZKLFK YLHZ DV GHYHORSLQJ DUORV 6WHYH DQG HQ WR EH WKH IXWXUH HFXWLYH HDGHUV RI DUULDJH DV ZHOO DV PHQWRULQJ WKHP RQ RSWLPL LQJ ORQJ WHUP VKDUHKROGHU YDOXH FUHDWLRQ WKURXJK ZLVH VDYY H LEOH DQG KLJKO GLVFLSOLQHG DSLWDO OORFDWLRQ DV covered so brilliantly in the 2012 book The Outsiders E LOO 7KRUQGLNH IWHU FR IRXQGLQJ DUULDJH DW HDUV RXQJ RQ XQH WKH FRPSDQ KDV QDOO HYROYHG DIWHU PRUH than thirty years into a Being The Best Mission Vision Company LQ RXU LQGXVWU

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HDUV ZKLFK LV LQWHQGHG DORQJ ZLWK WDNHDZD LQVLJKWV E 693 PHPEHUV WR SURYLGH D JUHDWHU XQGHUVWDQGLQJ RI RXU SDVW SUHVHQW DQG OLNHO IXWXUH SHUIRUPDQFH But more profoundly important and rare in this Shareholder Letter is that we will also present total consolidated performance ranges of what our High Performance Transformation LV H SHFWHG WR ORRN OLNH RYHU WKH QH W WKUHH HDUV XQGHU D OLNHO DSLWDO OORFDWLRQ 6FHQDULR DQG IRU WKH UVW WLPH ZKDW RXU VKDUHV FRXOG SRWHQWLDOO EH ZRUWK HDFK HDU ZLWK FRQWLQXHG RXWVWDQGLQJ H HFXWLRQ RI RXU WKUHH FRUH PRGHOV 7KH 7DEOH RI RQWHQWV IRU WKLV 6KDUHKROGHU HWWHU LV VKRZQ EHORZ VHTXHQWLDOO LQ VHFWLRQV FRYHUHG E HDFK 693 PHPEHU TABLE OF CONTENTS Mel Payne Pages RXUWK 4XDUWHU DQG XOO

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SHARE PRICE VALUATION METHODOLOGIES POTENTIAL SHARE PRICE RANGES 5 Year Enterprise Valuation Methodologies Potential Performance at Valuation Multiples 2020 2021 Three Year Scenario 2022 2023 2024 CAGR 9 7 0XOWLSOH 9 7 0XOWLSOH 9 7 0XOWLSOH 9 7 0XOWLSOH 9 7 0XOWLSOH 5 Year P E Valuation Matrix Potential Performance at Valuation Multiples 2020 2023 2024 CAGR 3 0XOWLSOH 3 0XOWLSOH 3 0XOWLSOH 5 Year FCF Valuation Matrix 2021 Three Year Scenario Potential Performance at Valuation Multiples 2022 Three Year Scenario 2020 2021 2022 2023 2024 CAGR UHH DVK ORZ TXLW

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FIVE QUARTER OPERATING AND FINANCIAL TREND REPORT HIGHLIGHTS 000 s except for volume averages margins 4TH QTR 2020 1ST QTR 2021 2ND QTR 2021 3RD QTR 2021 4TH QTR 2021 XQHUDO 6DPH 6WRUH RQWUDFWV YHUDJH 5HYHQXH 3HU RQWUDFW XQHUDO 6DPH 6WRUH XULDO RQWUDFWV XQHUDO 6DPH 6WRUH XULDO 5DWH YHUDJH 5HYHQXH 3HU XULDO RQWUDFW XQHUDO 6DPH 6WRUH UHPDWLRQ RQWUDFWV XQHUDO 6DPH 6WRUH UHPDWLRQ 5DWH YHUDJH 5HYHQXH 3HU UHPDWLRQ RQWUDFW XQHUDO 6DPH 6WRUH 5HYHQXH XQHUDO 6DPH 6WRUH LHOG 7 XQHUDO 6DPH 6WRUH LHOG 7 0DUJLQ XQHUDO FTXLVLWLRQ 5HYHQXH XQHUDO FTXLVLWLRQ LHOG 7 XQHUDO FTXLVLWLRQ LHOG 7 0DUJLQ HPHWHU 6DPH 6WRUH 3UHQHHG 3URSHUW RQWUDFWV 6ROG HPHWHU 6DPH 6WRUH 3UHQHHG 6DOHV Revenue HPHWHU 6DPH 6WRUH 5HYHQXH HPHWHU 6DPH 6WRUH LHOG 7 HPHWHU 6DPH 6WRUH LHOG 7 0DUJLQ HPHWHU FTXLVLWLRQ 3UHQHHG 3URSHUW RQWUDFWV 6ROG HPHWHU FTXLVLWLRQ 3UHQHHG 6DOHV Revenue HPHWHU FTXLVLWLRQ 5HYHQXH HPHWHU FTXLVLWLRQ LHOG 7 HPHWHU FTXLVLWLRQ LHOG 7 0DUJLQ 7RWDO LQDQFLDO 5HYHQXH 7RWDO LQDQFLDO LHOG 7 7RWDO LQDQFLDO LHOG 7 0DUJLQ 7RWDO 5HYHQXH 7RWDO LHOG 7 7RWDO LHOG 7 0DUJLQ GMXVWHG RQVROLGDWHG 7 GMXVWHG RQVROLGDWHG 7 0DUJLQ GMXVWHG LOXWHG 36 GMXVWHG UHH DVK ORZ GMXVWHG UHH DVK ORZ 0DUJLQ 3 1HW QFRPH RVV 3 1HW QFRPH RVV 0DUJLQ 3 LOXWHG DUQLQJV RVV 3HU 6KDUH FOXGHV 3UHQHHG XQHUDO LQWHUHVW HDUQLQJV UH HFWHG LQ 7RWDO LQDQFLDO 5HYHQXH 7KH PRVW FRPSDUDEOH 3 PHDVXUHV WR WKH 1RQ 3 PHDVXUHV SUHVHQWHG LQ WKLV WDEOH FDQ EH IRXQG LQ WKH 5HFRQFLOLDWLRQ RI 1RQ 3 LQDQFLDO 0HDVXUHV VHFWLRQ RI WKH SUHVV UHOHDVH GDWHG HEUXDU CARRIAGE SERVICES 2021 Annual Report Page 15

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As shown on the previous page we have had consistent High Performance LQ HDFK RI WKH YH UHYHQXH VHJPHQWV RYHU WKH ODVW YH TXDUWHUV ZLWK D YH TXDUWHU DYHUDJH RI PLOOLRQ DQG WKH ODVW WZR TXDUWHUV RI DERYH PLOOLRQ 2XU DOO WLPH TXDUWHUO UHYHQXH KLJK ZDV WKH UVW TXDUWHU RI DW PLOOLRQ ZLWK DQXDU EHLQJ WKH PDLQ GULYHU IRU WKLV UHVXOW GXH WR D 29 VSLNH FHQWHUHG LQ RXU ODUJH DOLIRUQLD SRUWIROLR 2XU VHFRQG TXDUWHU UHYHQXH RI PLOOLRQ ZDV WKH ORZHVW UHYHQXH TXDUWHU EXW ZH ZHUH VWLOO DEOH WR SURGXFH D LHOG 7 0DUJLQ RI DOVR WKH ORZHVW RI WKH ODVW YH TXDUWHUV 7KH FRQVLVWHQF LQ TXDUWHUO UHYHQXH IURP HYHU VHJPHQW DOVR FRQYHUWHG LQWR FRQVLVWHQF LQ KLJK 7RWDO LHOG 7 0DUJLQV UDQJLQJ IURP WR RYHU WKH YH TXDUWHUV 7KH KLJK OHYHO RI FRQVLVWHQF LQ 7RWDO LHOG 7 0DUJLQV LV UH HFWLYH RI WKH FDVK HDUQLQJ SRZHU LQ RXU YH UHSRUWLQJ VHJPHQWV WKDW KDV HPHUJHG since the beginning of our portfolio performance transformation in 2018 as previously the all time high Field 7 0DUJLQ IRU D IXOO HDU ZDV LQ 2XU SRVLWLYH RXWORRN LV EDVHG RQ ZKDW ZH NQRZ LV KDSSHQLQJ DW DUULDJH KLOH RWKHU FRPSDQLHV LQVLGH DQG RXWVLGH RXU VHFWRU DUH FRQFHUQHG DERXW WKH SRVW 29 HIIHFW SXOO IRUZDUG ZH FDQQRW SUHGLFW ZKDW WKH QHZ QRUPDOL HG GHDWK UDWH ZLOO EH SRVW 29 DV 29 FRXOG EHFRPH HQGHPLF DQG WKHUH LV WRR PXFK QRLVH DQG XQUHOLDEOH LQIRUPDWLRQ IRU XV WR HYHQ WU WR SUHGLFW SUHFLVHO ZKDW WKH LPSDFW ZLOO EH LQ WKH IXWXUH QVWHDG ZH think long term and focus on what we can control and what we do best pursuing our Being The Best Mission and Vision YHQ XQGHU D SDQGHPLF HQYLURQPHQW ZLWK UHVWULFWLRQ PDQGDWHV VRFLDO GLVWDQFH UHPRWH ZRUN RYHUZRUNHG KHURHV DQG DQ RWKHU XQFHUWDLQW RU VSHFXODWLRQ DERXW WKH IXWXUH QR FU VWDO EDOO DW 69 ZH ZLOO always strive to be the best we can be a byproduct of which is that we say yes when other competitors say QR H VD ZH FDQ ZKHQ RWKHUV VD ZH FDQ W 7KH UHVLOLHQF FUHDWLYLW LQQRYDWLRQ DQG SDVVLRQ IRU VHUYLFH H FHOOHQFH RI RXU DPD LQJ 0DQDJLQJ 3DUWQHUV DQG WKHLU EHVW LQ FODVV WHDPV RI HPSOR HHV KDYH EXLOW EUDQG OR DOW DQG WRS RI PLQG UHSXWDWLRQ LQ WKHLU UHVSHFWLYH FRPPXQLWLHV 0RVW LPSRUWDQWO RXU FXVWRPHUV KDYH UHVSRQGHG E PDNLQJ KXJH GHSRVLWV LQ WKH Goodwill Value Creation EDQN RI RXU PRVW FULWLFDO DVVHW WKH TRUST RI WKH IDPLOLHV ZH VHUYH 0RUHRYHU ZKHQHYHU DQG ZKDWHYHU WKH QRUPDOL HG GHDWK UDWH SHUFHQWDJH WXUQV RXW WR EH RXU Best of the Best WHDP RI WHDPV VWDQG UHDG WR FDSWXUH WKH ELJJHVW VKDUH RI WKH ORFDO GHDWK UDWH DFURVV RXU SRUWIROLR RI EXVLQHVVHV Page 16 CARRIAGE SERVICES 2021 Annual Report

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SAME STORE FUNERAL REVENUE MONTHLY TRENDS AND DRIVERS SEVEN MONTHS ENDING JANUARY 2022 2021 2020 000 s except for volume averages Same Store Funeral 2022 2021 JUL AUG SEP OCT NOV DEC RQWUDFWV YROXPH DQXDU RQWUDFWV YROXPH DQXDU Volume Variance YHUDJH 5HYHQXH 3HU RQWUDFW 487 JAN 82 437 867 594 206 73 367 47 96 78 155 DQXDU YHUDJH 5HYHQXH 3HU RQWUDFW DQXDU Average Revenue Per Contract Variance 205 119 2SHUDWLQJ 5HYHQXH DQXDU 2SHUDWLQJ 5HYHQXH DQXDU Operating Revenue Variance 728 2 079 4 830 2 843 1 571 1 744 1HW 5HYHQXH 9ROXPH 9DULDQFH 1HW 5HYHQXH YHUDJH 9DULDQFH 728 2 079 4 830 2 843 1 571 1 744 115 Net Revenue Variance 115 FOXGHV 3UHQHHG XQHUDO LQWHUHVW HDUQLQJV UH HFWHG LQ 7RWDO LQDQFLDO 5HYHQXH H FDQ REVHUYH WKDW ZLWK WKH H FHSWLRQ RI D KLJK FRPSDUDEOH LQ HFHPEHU RI DW WKH VSLNH RI 29 ZKLFK 6WHYH ZLOO FRYHU LQ PRUH GHWDLO ODWHU LQ WKLV UHOHDVH RXU 6DPH 6WRUH XQHUDO 7UHQGV LQ WKH WDEOH DERYH UH HFW WKDW HFHPEHU RI ZDV WKH RQO PRQWK ZLWK D QHJDWLYH 2SHUDWLQJ 5HYHQXH 9DULDQFH 7KH ODUJH QHJDWLYH 2SHUDWLQJ 5HYHQXH 9DULDQFH UHODWHG WR YROXPHV EHLQJ GRZQ LQ HFHPEHU ZDV SDUWLDOO RIIVHW E DERXW E D SRVLWLYH YDULDQFH IURP RXU KLJKHU 53 QHWWLQJ WKH PLOOLRQ QHJDWLYH 1HW 5HYHQXH 9DULDQFH YHU PRQWK ZLWK WKDW H FHSWLRQ LQ WKLV VHYHQ PRQWK WUHQG VKRZV D SRVLWLYH 2SHUDWLQJ 5HYHQXH 9DULDQFH ZLWK DQXDU RI DV RXU DOO WLPH KLJK UHYHQXH PRQWK ZLWK PLOOLRQ QRZ WKH VHFRQG SODFH WR DQXDU RI ZKLFK HQGHG DW PLOOLRQ DQG KLJKHU E WKRXVDQG YHQ PRUH UHOHYDQW LV WKDW IURP WKH EHJLQQLQJ RI 29 LQ HEUXDU DQG WKURXJK DQXDU RI WKH RQO WZR DGGLWLRQDO PRQWKV ZLWK D QHJDWLYH 1HW 5HYHQXH 9DULDQFH ZHUH 0DUFK DQG SULO RI DW WKH EHJLQQLQJ RI WKH KDUVK ORFNGRZQV DQG VRFLDO JDWKHULQJ PDQGDWHV UH HFWLYH RI WKH DELOLW RI RXU HQWUHSUHQHXULDO 0DQDJLQJ 3DUWQHUV DQG WKHLU WHDPV RI HPSOR HHV WR SLYRW DQG DGDSW WR D QHZ DQG XQNQRZQ DW WKH WLPH SDQGHPLF HQYLURQPHQW 2XU YHUDJH 5HYHQXH 3HU RQWUDFW 53 LV FRQVLVWHQWO UDQJLQJ EHWZHHQ DQG ZLWK D SRVLWLYH YDULDQFH RI GROODUV EHWZHHQ WKH KLJKHVW DQG ORZHVW RYHU WKH VHYHQ PRQWK WUHQG HQGLQJ DQXDU RI FRQ UPLQJ WKDW RXU 0DQDJLQJ 3DUWQHUV DQG WKHLU WHDPV DUH RIIHULQJ DOO RI WKH RSWLRQV WR DOO RI WKH IDPLOLHV DOO RI WKH WLPH CARRIAGE SERVICES 2021 Annual Report Page 17

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FIVE YEAR SAME STORE CEMETERY DETAILED TREND REPORT AND SUMMARY CEMETERY ACQUISITION DATA FIVE YEAR CEMETERY SAME STORE TREND REPORT 000 s except for volume averages margins 2017 2018 2019 2020 2021 2018 2021 Variance 3UHQHHG QWHUPHQWV 6ROG 3UHQHHG 7RWDO 6DOHV 3URGXFWLRQ 3UHQHHG 5HFRJQL HG 5HYHQXH 3UHQHHG 0DUJLQ 3UHQHHG 0DUJLQ 1 ES WQHHG 5HYHQXH WQHHG 0DUJLQ WQHHG 0DUJLQ 1 ES 7RWDO 2SHUDWLQJ 5HYHQXH 7RWDO 3UHQHHG WQHHG 0DUJLQ 7RWDO 3UHQHHG WQHHG 0DUJLQ 1 ES 7RWDO RQWUROODEOH RVWV RI 5HYHQXH 1 ES 7RWDO 1RQ FRQWUROODEOH RVWV 1 ES 7RWDO 2SHUDWLQJ 0DUJLQ 7RWDO 2SHUDWLQJ 0DUJLQ 1 ES 2WKHU GGEDFNV UHQW DQG RWKHU LWHPV HPHWHU LHOG 7 0DUJLQ 1 ES 7RWDO LQDQFLDO 5HYHQXH 7RWDO 2SHUDWLQJ DQG LQDQFLDO 5HYHQXH HPHWHU LHOG LQDQFLDO 7 1 ES 3UHQHHG 7RWDO 6DOHV YHUDJH WQHHG DQG 3UHQHHG 0DWXUHG QWHUPHQWV 7RWDO RQWUROODEOH RVWV RI 5HYHQXH 7RWDO 1RQ FRQWUROODEOH RVWV HPHWHU LHOG 7 HPHWHU LHOG LQDQFLDO 7 0DUJLQ Page 18 CARRIAGE SERVICES 2021 Annual Report 2018 2021 Variance

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CEMETERY ACQUISITION SUMMARY 000 s except for margins 2019 2020 2021 2021 2020 Variance 2021 2020 Variance 7RWDO 2SHUDWLQJ 1HW 5HYHQXH 2SHUDWLQJ 0DUJLQ FOXGHV 5HQW 1 ES 2WKHU GGEDFNV DQG RWKHU LWHPV HPHWHU LHOG 7 1 ES 7RWDO LQDQFLDO 5HYHQXH 7RWDO 2SHUDWLQJ LQDQFLDO 5HYHQXH 1 ES 2SHUDWLQJ 0DUJLQ HPHWHU LHOG 7 0DUJLQ HPHWHU LHOG LQDQFLDO 7 0DUJLQ 2XU WKUHH HPHWHU FTXLVLWLRQV FRQWLQXHG WKHLU LQWHJUDWLRQ MRXUQH LQWR RXU Standards Operating Model in 2021 with an acceleration of High Performance DV FTXLVLWLRQ HPHWHU 5HYHQXH ZDV PLOOLRQ KLJKHU WKDQ E PLOOLRQ RU FTXLVLWLRQ HPHWHU LHOG 7 JUHZ WR PLOOLRQ KLJKHU WKDQ E PLOOLRQ RU ERRVWHG E FTXLVLWLRQ LHOG 7 0DUJLQ RI KLJKHU WKDQ E EDVLV SRLQWV 2XU FTXLVLWLRQ HPHWHU 3RUWIROLR IXWXUH LV YHU EULJKW DW DOO WKUHH EXVLQHVVHV EXW H FHHGLQJO VR DW DLUID 0HPRULDO 3DUN DQG XQHUDO RPH VLQFH WKH DUULYDO RI 9LFWRU ROODQG DV WKH QHZ 0DQDJLQJ 3DUWQHU 9LFWRU ZLOO EULQJ WR DLUID WKH Right Who factor because of his 4E Leadership FKDUDFWHULVWLFV DQG RSHUDWLRQDO H SHULHQFH LQ KLJK YROXPH KLJK SRWHQWLDO IXQHUDO KRPHV DQG FHPHWHULHV HOFRPH WR WKH DUULDJH DPLO 9LFWRU ORGANIZATION STRUCTURE TALENT AND CONCEPTUAL VISION UPDATE 2XU Good To Great High Performance Flywheel VKRZQ RQ WKH QH W SDJH LV D GHSHFWLRQ RI RXU High Performance Culture Framework included in our Value Creation Financial Dynamics 7KH High Performance Flywheel focuses on our three core Being The Best operator Being The Best consolidator and Being The Best YDOXH FUHDWRU YLVLRQ FRPSDQ WKDW KDSSHQV WR EH LQ WKH GHDWKFDUH LQGXVWU 7KH ZKHHO KHOSV GH QH ZKR ZH DUH ZKDW ZH GR DQG KRZ ZH GR LW 7KH LQQRYDWLYH LGHDV DQG VRSKLVWLFDWHG FRQFHSWV DUH WKH IRXQGDWLRQ DW DUULDJH DQG ZLOO QHYHU FKDQJH KRZHYHU RXU Good To Great Journey that never ends and our Being The Best Vision GHPDQGV WKDW HYHU RQH DW DUULDJH SXW WKHLU KHDUW DQG PLQG WR FRQWLQXRXV LPSURYHPHQW HYHU GD DQG LQ HYHU WKLQJ ZH GR LWK WKDW WKRXJKW LQ PLQG ZH DUH YHU H FLWHG WR VKDUH WKH IROORZLQJ RSHUDWLRQV XSGDWH Page 20 CARRIAGE SERVICES 2021 Annual Report

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CAREdge Forum Sales 2Q DQXDU ZH KDG RXU UVW 9 5 CAREdge Forum for our High Performance HPHWHU 6DOHV 0DQDJHU HDGHUV DQG WKHLU 0DQDJLQJ 3DUWQHUV DW 7KH OL D DQH KRWHO LQ 1HZ 2UOHDQV 2XU CAREdge Forum LV D WZR IXOO GD H SRVXUH WR KLJK HQHUJ KLJK H SHFWDWLRQV DQG FUHDWLYH DQG LQQRYDWLYH LGHDV WKDW OHDG WR D MRXUQH RI GLVFRYHU RI ZKDW LV SRVVLEOH LQ WKH ZRUOG RI SUHQHHG VDOHV W LV DOVR DQ opportunity to meet fantastic talent from our cemetery portfolio across the country and share thoughts DQG VXFFHVV LGHDV 2YHU WKHVH WZR GD V RI WKH PHHWLQJ RI WKH PLQGV WKH WHDP OHDUQHG DERXW RXU UHFHQWO ODXQFKHG 0LFURVRIW QDPLFV 50 ZKLFK ZH FDOO SalesEdge H EHOLHYH WKDW WKLV IDQWDVWLF WRRO SURYLGHV RXU VDOHV WHDPV ZLWK WKH HGJH WKH QHHG WR SURYLGH D KLJKHU OHYHO RI VHUYLFH H FHOOHQFH DQG FXVWRPHU H SHULHQFH WR WKH IDPLOLHV WKDW ZH VHUYH ZKLOH GHOLYHULQJ High Performance Sales IRU HDUV WR FRPH 7KH attendees to our CAREdge Forum DOVR OHDUQHG DERXW RXU KLJK HQG SHUVRQDOL DWLRQ DQG H FOXVLYH 3ULYDWH Memorials offerings among other tools and sales skills that will enhance how we engage with families PRYLQJ IRUZDUG Sales and Marketing IIHFWLYH HEUXDU 6KDQH 3XGHQ ZDV SURPRWHG WR 9LFH 3UHVLGHQW RI 6DOHV DQG 0DUNHWLQJ 6KDQH ZKR MRLQHG DUULDJH DV LUHFWRU RI 6DOHV 6XSSRUW RQ 2FWREHU KDV FROODERUDWHG DQG EXLOW UHODWLRQVKLSV RI WUXVW ZLWK PDQ RI RXU 0DQDJLQJ 3DUWQHUV 6DOHV 0DQDJHUV 6DOHV RXQVHORUV DQG RXVWRQ 6XSSRUW HQWHU 7HDPV H KDV FRQWULEXWHG VLJQL FDQWO WR RXU VDOHV VXFFHVV HVSHFLDOO LQ WKH JURZWK RI FHPHWHU SUHQHHG VDOHV LV OHDGHUVKLS VW OH VWUDWHJLF DSSURDFK DQG H SHULHQFH KDYH OHG WR High Performance Sales OHYHOV QHYHU H SHULHQFHG EHIRUH LQ KLV SRUWIROLR RI EXVLQHVVHV LQFOXGLQJ RXU PRVW SURPLQHQW EXVLQHVV DLUID 0HPRULDO 3DUN DQG XQHUDO RPH Q KLV QHZ OHDGHUVKLS UROH 6KDQH ZLOO H SDQG WKH SDWK IRU RXU Carriage High Performance Culture Bus ZLWKLQ RXU VDOHV RUJDQL DWLRQ E EULQJLQJ PRUH RI WKH ULJKW SHRSOH LQWR WKH ULJKW VHDWV DW WKH ULJKW WLPH DUULDJH V Good To Great Journey KDV EOXH VNLHV RQ WKH KRUL RQ LWK D VXSHUFKDUJHG High Performance Sales Bus KLWWLQJ RQ DOO F OLQGHUV 6KDQH ZLOO FRQWLQXH WKH DFFHOHUDWLRQ RI RXU HPHWHU 3UHQHHG 6DOHV LQ ERWK RXU 6DPH 6WRUH HPHWHU DQG FTXLVLWLRQ HPHWHU 3RUWIROLR RI EXVLQHVVHV DW HYHQ IDVWHU VSHHGV DQG in complete alignment with our Being The Best Vision and Mission H ZLVK KLP LQFUHGLEOH VXFFHVV LQ KLV QHZ OHDGHUVKLS UROH CARRIAGE SERVICES 2021 Annual Report Page 21

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DUULDJH QHYHU KDG D IRUPDO PDUNHWLQJ WHDP DV SDUW RI RXU RXVWRQ 6XSSRUW HQWHU IRU WKLV UHDVRQ DQG WR OHDG RXU PDUNHWLQJ VWUDWHJ RQ DQXDU UG ZH UHFUXLWHG D QHZ LUHFWRU RI 0DUNHWLQJ OIUHG KLWH ZKR FRPHV WR DUULDJH ZLWK D SURIHVVLRQDO EDFNJURXQG LQ GLJLWDO PDUNHWLQJ WUDQVIRUPDWLRQ IRU GHFHQWUDOL HG RUJDQL DWLRQV He will help us reshape and enhance our digital marketing efforts and be the support for all Managing Partners DQG WKHLU EXVLQHVVHV DV WKH SRVLWLRQ WKHLU EUDQG H SDQG PDUNHW UHDFK JURZ RXU FXVWRPHU OR DOW H SDQG VRFLDO PHGLD SODWIRUP SUHVHQFH JDLQ PDUNHW VKDUH DQG GHOLYHU KLJKHU RSHUDWLQJ DQG QDQFLDO SHUIRUPDQFH WKDQ HYHU EHIRUH H ZHOFRPH OIUHG WR WKH DUULDJH 6HUYLFHV IDPLO Regional Portfolio of Business Changes H KDYH UHGLVWULEXWHG WKH IXQHUDO DQG FHPHWHU RSHUDWLRQV LQ RXU DVW DQG HQWUDO 5HJLRQV WR EDODQFH WKH QXPEHU DQG UHYHQXH VL H WKDW HDFK RI RXU WKUHH 5HJLRQDO 3DUWQHUV VXSSRUWV 7KLV QHZ GLVWULEXWLRQ ZLOO KHOS strengthen the partnership with all our Managing Partners optimize market share gains and thereby solidify RXU RSHUDWLQJ OHYHUDJH ZLWK KLJKHU DQG VXVWDLQDEOH UHYHQXH JURZWK 6KDZQ 3KLOOLSV 6HQLRU 9LFH 3UHVLGHQW DQG 5HJLRQDO 3DUWQHU RI RXU HQWUDO 5HJLRQ ZLOO QRZ KDYH RQH RI WKH WZR 1RUWKHDVW VXE UHJLRQV ZKHUH KLV YDVW H SHULHQFH ZLOO DFFHOHUDWH VXFFHVV LQ Standards Achievement LQ KLV H SDQGHG SRUWIROLR DUULDJH LJK 3HUIRUPDQFH XOWXUH DQG FRQWLQXRXV HYROXWLRQ LQ WKH SXUVXLW RI Being The Best Vision could EH GHVFULEHG DV D DUZLQLDQ 0HULWRFUDF ZKHUH RQO WKH Best of Best WKULYH DQG FRQTXHU RQVHTXHQWO we are now seeking the Right Who DUULDJH 6HQLRU 9LFH 3UHVLGHQW DQG 5HJLRQDO 3DUWQHU RI RXU DVW 5HJLRQ who will take a leadership seat on the Carriage High Performance Bus and bring this portfolio of businesses WR UHDFK WKHLU IXOO SRWHQWLDO Digital Transformation Five Year Plan 7KH KLJKO WUDGLWLRQDO VR FDOOHG GHDWKFDUH LQGXVWU UHPDLQV SULPH IRU GLVUXSWLRQ HVSHFLDOO LQ LQQRYDWLRQ WKURXJK QHZ WHFKQRORJ H UHFRJQL H WKDW ZH ZLOO HLWKHU JHW GLVUXSWHG RU EHFRPH GLVUXSWLYH RXUVHOYHV H FKRRVH WKH ODWWHU LWK WKLV JRDO LQ PLQG ZH DUH GHYHORSLQJ D WHQ HDU YLVLRQ D YH HDU VWUDWHJ DQG D RQH HDU SODQ IRU WKH WUDQVIRUPDWLRQ DQG LQQRYDWLRQ RI GHDWKFDUH WHFKQRORJ 6WDUWLQJ ZLWK WKH KLUH RI RXU QHZ KLHI QIRUPDWLRQ 2I FHU ZKR ZLOO EHJLQ ZLWK DUULDJH LQ SULO RI 2XU QHZ 2 ZKRVH QDPH ZLOO EH disclosed in mid March 2022 will be tasked with the holistic mission of creating a customer centric technology VROXWLRQ WKDW HOHYDWHV WKH VHUYLFH H FHOOHQFH MRXUQH IRU DOO WKH IDPLOLHV WKDW ZH VHUYH 7KLV LQQRYDWLYH DQG GLJLWDO WUDQVIRUPDWLRQ ZLOO LQFOXGH EXW QRW EH OLPLWHG WR LPSURYHG GLJLWDO LQ VLWX H SHULHQFH integration of celebrations of life through technology a seamless chain of custody fully integrating and DFFHOHUDWLQJ VXFFHVVIXO H HFXWLRQ RI WKH EDFN DQG IURQW RI FH V VWHPV DQG UVW LQ FODVV F EHU VHFXULW V VWHPV DQG SROLFLHV H DUH ORRNLQJ IRUZDUG WR DFFHOHUDWLQJ WKH VXFFHVVIXO LPSOHPHQWDWLRQ RI WKLV YH HDU FRPSOHWH LJLWDO 7UDQVIRUPDWLRQ SODQ ZKRVH FRUH PLVVLRQ LV WR GHOLYHU YDOXH FUHDWLRQ IRU WKH IDPLOLHV WKDW ZH VHUYH RXU WHDPV RI HOG DQG RXVWRQ 6XSSRUW HQWHU HPSOR HHV DQG RXU VKDUHKROGHUV Standards Council Update 2Q DQXDU ZH KDG RXU UVW 6WDQGDUGV RXQFLO PHHWLQJ VLQFH WKH 29 SDQGHPLF KLW WKH ZRUOG LQ HEUXDU 7KLV 6WDQGDUGV RXQFLO PHHWLQJ ZDV YHU VSHFLDO DV 0LFKDHO HOO 0DQDJLQJ 3DUWQHU RI 5HVWKDYHQ XQHUDO RPH DQG HPHWHU LQ 2NODKRPD LW 2 ZDV YRWHG LQ IRU PHPEHUVKLS RQ RXU Best of the Best 6WDQGDUGV RXQFLO 0LFKDHO EHJDQ KLV FDUHHU DW DUULDJH 6HUYLFHV LQ DV D 0DQDJLQJ 3DUWQHU DW 1RUWK UHYDUG XQHUDO RPH DQG 2DNODZQ 0HPRULDO 3DUN LQ 7LWXVYLOOH IHZ HDUV ODWHU KH EHFDPH D LUHFWRU RI 2SHUDWLRQV 6XSSRUW IRU WKH HQWUDO 5HJLRQ Q XQH 0LFKDHO IRXQG KLV SHUIHFW VHDW RQ RXU High Performance Bus as Managing Partner of Resthaven XQHUDO RPH DQG 0HPRU DUGHQV LQ 2NODKRPD LW 2 LWK KLV WLPH LQ WKHVH YDULRXV UROHV 0LFKDHO brings a wide array of knowledge and leadership in the funeral home and cemetery operations and will have WKH RSSRUWXQLW WR UHSUHVHQW WKH HQWUDO 5HJLRQ RQ WKH 6WDQGDUGV RXQFLO KLOH 0LFKDHO KDV RQO EHHQ DW 5HVWKDYHQ IRU WZR DQG RQH KDOI HDUV KH KDV WUDQVIRUPHG KLV EXVLQHVV LQWR RQH RI DUULDJH V WRS SHUIRUPLQJ EXVLQHVVHV RYHU WKLV SHULRG H ZHOFRPH 0LFKDHO DV WKH QHZHVW PHPEHU RI RXU 6WDQGDUGV RXQFLO Page 22 CARRIAGE SERVICES 2021 Annual Report

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CAREdge Forum Operations 2Q 0DUFK WKURXJK 0DUFK RI LQ RXVWRQ 7 ZH ZLOO KDYH RXU QHZ YHUVLRQ RI WKH QQXDO 0DQDJLQJ Partner Meeting which will also be called CAREdge Forum RU WKLV QHZ UVW RSHUDWLRQV HGLWLRQ RI WKH IRUXP our sole focus will be Service and Guest Experience Transformation OO RI RXU 0DQDJLQJ 3DUWQHUV LJK 3RWHQWLDO OHDGHUV 2SHUDWLRQDO DQG 6DOHV RXVWRQ 6XSSRUW HQWHU 7HDPV DQG 6SHFLDO XHVWV ZLOO PHHW WR OLYH EUHDWKH DQG WKLQN HQKDQFHG SHUVRQDOL HG VHUYLFH H FHOOHQFH IRU WKH IDPLOLHV ZH VHUYH LQ ZD V ZH QHYHU KDG EHIRUH 1RW RQO ZLOO WKLV EH D IXQ DPD LQJ DQG XQLTXH HYHQW EXW PRVW LPSRUWDQWO LW ZLOO FKDOOHQJH HYHU RQH LQ attendance in thinking and reimagining ways to completely transform our Service and Guest Experience already one of our Funeral High Performance VWDQGDUGV ZHLJKWHG DW DIWHU RXU QHZ DQG LQFUHDVHG focus in service and attention to detail which will lead to increased market share growth throughout our SRUWIROLR RI EXVLQHVVHV HYHQ IXUWKHU 2XU 6WDQGDUGV RXQFLO ZLOO UHFRQYHQH DIWHU WKH CAREdge Forum to discuss a revamped Service and Guest Experience Standard and its relative weighting importance out of 6WDQGDUG FKLHYHPHQW Innovation and Creativity Committee 7KH KLJKO WUDGLWLRQDO GHDWKFDUH LQGXVWU KDV D XQLTXH RSSRUWXQLW WR WUDQVIRUP KRZ IDPLOLHV VD WKHLU ODVW JRRGE HV DQG H SHULHQFH IXQHUDO DQG FHPHWHU VHUYLFHV DQG SURGXFWV H KDYH PDQ 0DQDJLQJ 3DUWQHUV with teams of highly talented funeral professionals who through creativity and innovation provide a SHUVRQDOL HG H SHULHQFH WKDW HQDEOHV WKH UHPDLQLQJ IDPLO DQG IULHQGV WR UHPHPEHU DQG KRQRU WKH OLIH WKDW ZDV OLYHG ZKLOH FHOHEUDWLQJ WKDW ORYHG RQH V OLIH LQ WKH PRVW PHDQLQJIXO ZD V 0DQ IDPLOLHV KDYH H SUHVVHG WKHLU JUDWLWXGH WR RXU GHYRWHG DQG FDULQJ HPSOR HHV WKURXJK ZULWWHQ FDUGV HPDLOV WH WV DQG PDQ RWKHU ZD V WKDQNLQJ WKHP IRU FUHDWLQJ WKHVH PHPRUDEOH LIH 6WRULHV DQG KRQRULQJ WKHLU ORYHG RQHV ZLWK FDUH GLJQLW DQG VLJQL FDQFH H EHOLHYH WKDW WKLV QREOH SXUSRVH FDQ EH LPSURYHG E LQWHJUDWLQJ WHFKQRORJ DQG WKH DGDSWDWLRQ RI KRVSLWDOLW FRQFHSWV LQWR RXU VHUYLFH FKDLQ RU WKHVH UHDVRQV ZH DUH IRUPLQJ RXU UVW HYHU Innovation and Creativity Committee comprised of our very best and most creative and innovative mastermind Managing Partners whose mission will be to craft a FXVWRPHU MRXUQH DQG VHUYLFH FKDLQ WKDW HOHYDWHV RXU Service and Guest Experience Standard with every IDPLO HYHU WLPH H ORRN IRUZDUG WR VHHLQJ WKH DPD LQJ LQQRYDWLYH LGHDV DQG FUHDWLYH FRQFHSWV WKDW WKLV team will design as tools and make available to all of our Managing Partners and the families they serve FUHDWLQJ YDOXH WR WKHLU FRPPXQLWLHV WKHLU HPSOR HHV DQG DUULDJH VKDUHKROGHUV 2022 Carriage Theme YHU HDU DUULDJH KDV KDG D High Performance theme that aligns with the innovative ideas and sophisticated FRQFHSWV RI RXU FRPSDQ 2XU 2020 Theme Transformative High Performance was the catalyst to the FRPSOHWH WUDQVIRUPDWLRQ RI DUULDJH WKDW EHJDQ DW WKH HQG RI 0HO HODERUDWHG RQ KLV H FLWHPHQW DQG HQWKXVLDVP IRU WKH IXWXUH RI DUULDJH E VWDWLQJ Our company is positioned like never before in our history to have a breakout high SHUIRUPDQFH LQ WKDW ZLOO NLFN VWDUW DQRWKHU LYH

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LWK WKLV EDFNJURXQG DV FRQWH W DQG RXU UNBREAKABLE UNION OF BELIEF FRPPLWPHQW WR RXU Being The Best Mission and Vision it is a natural transition to our 2022 Theme High Performance Value Creation Culture YHU RQH DW DUULDJH KDV WKH RSSRUWXQLW WR EH D 9DOXH UHDWRU LQ RXU High Performance Culture Bus DQG FRQVLVWHQW ZLWK LP ROOLQV TXRWH IURP KLV Good To Great ERRN Greatness is not a function of circumstance Greatness it turns out is largely a matter of FRQVFLRXV FKRLFH 2XU 2022 Theme High Performance Value Creation Culture is an open and standing invitation to all DUULDJH HPSOR HHV YHQGRUV SDUWQHUV DQG FRQWULEXWRUV WR CHOOSE GREATNESS and never settle for DQ WKLQJ OHVV DQG UHDVRQ ZK FRQWLQXH WR VD LW LV D JUHDW WLPH WR EH DW DUULDJH DQG WKH EHVW LV HW WR FRPH FRQFOXGHG 0U 4XH DGD UPDATE ON STRATEGIC ACQUISITION ACTIVITY GROWTH OUTLOOK 6WHYH 0HW JHU HFXWLYH 9LFH 3UHVLGHQW KLHI GPLQLVWUDWLYH 2I FHU DQG HQHUDO RXQVHO VWDWHG H continue to be encouraged by the number of acquisition opportunities that have been presented by brokers RU PRUH IUHTXHQWO DQG SUHIHUDEO E RZQHUV WKHPVHOYHV EDVHG RQ ORQJVWDQGLQJ UHODWLRQVKLSV H UHPDLQ in advanced discussions with a number of top quality business owners and we are also in the early stages of OHDUQLQJ PRUH DERXW VHYHUDO RWKHU EXVLQHVVHV KLOH ZH GR QRW FXUUHQWO KDYH DQ WUDQVDFWLRQV WR DQQRXQFH ZH UHPDLQ H FLWHG E WKH OHYHO RI VXFFHVVLRQ SODQQLQJ DFWLYLW DQG DERXW WKH SURVSHFW RI JURZWK E DFTXLVLWLRQ LQ EHJLQQLQJ QR ODWHU WKDQ WKH WKLUG TXDUWHU LI QRW EHIRUH KLOH ZH DUH IRFXVHG RQ RXU JURZWK WKURXJK DFTXLVLWLRQ RXWORRN RXU DSSURDFK WR DFTXLVLWLRQV ZLOO UHPDLQ KLJKO VHOHFWLYH H UHFRJQL H WKH LPSRUWDQFH RI DYRLGLQJ GRLQJ VWXSLG VWXII VXFK DV WKH DJJUHVVLYH JURZWK WKURXJK KLJK PXOWLSOH DFTXLVLWLRQV WKDW GH QHG WKH V LQ RXU LQGXVWU ZKLFK 0HO GHVFULEHG HDUOLHU H DUH GLVFLSOLQHG LQ RXU UHYLHZ RI D EXVLQHVV WKH PDUNHW DQG GHPRJUDSKLFV JURZWK SURVSHFWV DQG YDOXDWLRQ H ZLOO QRW JURZ VLPSO IRU WKH VDNH RI JHWWLQJ ELJJHU EXW ZLOO LQVWHDG UHPDLQ IRFXVHG RQ LGHQWLI LQJ WKRVH FDQGLGDWHV WKDW W RXU VWUDWHJLF FULWHULD DW D YDOXDWLRQ WKDW PDNHV VHQVH IRU ERWK SDUWLHV H KDYH H WHQGHG WKH RIIHU WR YLVLW XV LQ RXVWRQ WR PDQ DFTXLVLWLRQ FDQGLGDWHV DQG FRQWLQXH WR LQYLWH WKRVH LQWHUHVWHG LQ JHWWLQJ WR NQRZ DUULDJH EHWWHU WR UHDFK RXW WR QRW MXVW DQ HFXWLYH 7HDP PHPEHU RU XVLQHVV HYHORSPHQW UHSUHVHQWDWLYH EXW IRUPHU RZQHUV 0DQDJLQJ 3DUWQHUV 6XSSRUW HQWHU OHDGHUV 6WDQGDUGV RXQFLO 0HPEHUV DQG HYHQ RDUG PHPEHUV OO RI WKH LQGLYLGXDO PHPEHUV RI WKHVH JURXSV DUH DYDLODEOH WR VKDUH WKHLU XQLTXH SHUVSHFWLYH RI WKH DUULDJH VWRU DV ZH ORRN IRU QHZ DFTXLVLWLRQ FDQGLGDWHV WR MRLQ RXU WHDP DQG EHFRPH RXU SDUWQHU ZLWKLQ WKH ODUJHU IDPLO RI SDUWQHUV ZKR FRPSULVH RXU SRUWIROLR RI EXVLQHVVHV W LV GLI FXOW WR SUHGLFW ZKHQ WKH ULJKW EXVLQHVV RU EXVLQHVVHV ZLOO EH UHDG IRU D VXFFHVVLRQ planning option but when they are we will be ready to share our story and present a customized solution IUDPHZRUN WR MRLQ WKH DUULDJH DPLO As the second longest tenured company in the industry with a more than 30 year history a strong capital VWUXFWXUH DELOLW WR VHOI QDQFH JURZWK IURP UHH DVK ORZ D XQLTXH RZQHU RSHUDWRU EXVLQHVV PRGHO EHVW LQ FODVV LQFHQWLYH SODQV DQG EHVW LQ LQGXVWU 6XSSRUW HQWHU 7HDPV RXU IXWXUH IRU JURZWK KDV QHYHU EHHQ EULJKWHU H DUH FRQ GHQW WKDW DQ RZQHU LQ QHHG RI D VXFFHVVLRQ SODQ ZKR WDNHV WKH WLPH WR OHDUQ PRUH DERXW WKH DUULDJH 6WRU DQG ZKHUH ZH DUH KHDGHG DQG PRVW LPSRUWDQWO WR PHHW WKH SHRSOH ZKR PDNH XS WKH DUULDJH 7HDP ZLOO FRQFOXGH WKDW WKHUH LV RQO RQH VXFFHVVLRQ SODQ FKRLFH IRU WKH EHVW UHPDLQLQJ IXQHUDO KRPH DQG FHPHWHU RZQHUV FIVE YEAR SAME STORE FUNERAL PERFORMANCE INCENTIVE COMPENSATION AND RECOGNITION ALIGNMENT TRENDS Q SULRU UHOHDVHV ZH GLVFXVVHG DW JUHDW OHQJWK WKH WUDQVIRUPDWLRQ WDNLQJ SODFH ZLWKLQ DUULDJH EHJLQQLQJ LQ 6HSWHPEHU W FDQ DW WLPHV EH GLI FXOW WR FRQYH WKH VLJQL FDQFH RI WKDW WUDQVIRUPDWLRQ WR WKRVH ZKR DUH QRW HPEHGGHG LQ WKH ZRUN DQG FRQWULEXWLQJ WR WKH HYROXWLRQ ZLWKLQ WKH FRPSDQ HDFK GD LWK WKDW VDLG ZH DUH QRZ IDU HQRXJK DORQJ WKLV MRXUQH WR KDYH DFFXPXODWHG PHDQLQJIXO GDWD WR VKDUH LQ VXSSRUW RI WHOOLQJ WKLV VWRU WR RXU VKDUHKROGHUV Page 24 CARRIAGE SERVICES 2021 Annual Report

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PERFORMANCE ALIGNMENT Five Year Same Store Funeral Standards Achievement and Incentive Compensation Trends GROODUV LQ WKRXVDQGV 2017 2018 2019 2020 2021 6WDQGDUGV FKLHYHPHQW 3RWHQWLDO 3LQQDFOH LQQHUV 3LQQDFOH LQQHUV RI 3LQQDFOH LQQHUV 7 RQXVHV 7 RQXVHV DV D RI LHOG 7 7 ODVV QXPEHU RI 03 V 7 LQQHUV QXPEHU RI 03 V RI 7 LQQHUV 7 RQXVHV 7 RQXVHV DV D RI LHOG 7 1HW 5HYHQXH LHOG 7 LHOG 7 0DUJLQ 7RWDO LHOG QFHQWLYHV 7RWDO LHOG QFHQWLYHV DV D RI LHOG 7 Page 28 QFOXGHV 3UHQHHG XQHUDO LQWHUHVW HDUQLQJV UH HFWHG LQ 7RWDO LQDQFLDO 5HYHQXH CARRIAGE SERVICES 2021 Annual Report 1 1 1

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FINAL OBSERVATIONS ABOUT THE PAST AND PRESENT 7R FRQFOXGH WKLV 6KDUHKROGHU HWWHU ZLOO VKDUH D FRXSOH RI HPDLOV IURP WZR RI RXU HOHYHQ 0DQDJLQJ 3DUWQHUV ZKR FRPSULVH RXU 6WDQGDUGV RXQFLO DQG WKHUHIRUH UHSUHVHQW WKH Best of the Best Managing Partners across RXU SRUWIROLR RI IXQHUDO KRPHV DQG FHPHWHULHV KLOH DUORV 6WHYH HQ DQG KDYH WULHG RXU EHVW WR GHVFULEH KRZ DUULDJH DFWXDOO ZRUNV EHQHDWK WKH FRYHUV RI D 1HZ

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Email from Kristi Ah You Managing Partner Franklin Downs Funeral Homes Modesto CA From Kristi AhYou Sent Tuesday February 22 2022 7 06 PM To Mel Payne Subject Just a big thank you LHY 4LS 7H UL Z V RUV H SVUN PTL SVUN HNV 0 OHK KL LSVWLK H JHYLLY HZ H LW VYVULY HUK OHK ILLU WYVTV LK V OPLM LW VYVULY 0 HIZVS LS SV LK OL PU LZ PNH P L WYVJLZZ PKLU PM PUN OHYK JHZLZ YLZWVUKPUN V KP J S JHSSZ HUK PU LZ PNH PVUZ 0 OHK TVZ YLJLU S PKLU P LK H JVSK JHZL homicide victim from 1971 and had accomplished many amazing things at that point I was at the LUK VM UPZOPUN H 4HZ LYZ PU VYLUZPJZ OLU H ZLYPLZ VM OV NO Z ILNHU V VJJ Y V TL VU H YLN SHY basis I am topped out there is no challenge I actually want to work harder but no one around me has these same goals or expectations This is when I began to realize that I needed something more but I was not exactly sure what the more was I just knew that I had a drive to do more of something I knew I needed to be challenged beyond what I thought I was capable of doing I had heard of this quote then and have many times since mostly from you after reading the book Good To Great by Jim Collins a few times Greatness is not a matter of circumstance Greatness it turns out is a matter of conscious choice It is truly a matter of choosing to be more and then ILPUN PSSPUN V NV V OL LKNL HUK Q TW V 0 THKL OH JOVPJL OLU 0 KLJPKLK V HJJLW H WVZP PVU as a Managing Partner of a brand new acquisition with Carriage Services That I just happened to have worked at while attending Mortuary College You stated in your 2020 Shareholder Letter We have learned at Carriage that if you don t focus intensely 100 of the time on getting your people right who interact with families who have just SVZ H SV LK VUL V Y JSPLU MHTPSPLZ PSS UL LY JVTL YZ OLYL PZ UV Y LY Z H LTLU That s because you won t have the right people engaging your client families and learning about the life of their deceased loved one in order to recommend high value emotional ideas and options about how best to honor and memorialize the life of their loved one As you know I had my own unique experience serving as the Managing Partner and as a client family simultaneously My adult son passed away and I needed to make funeral arrangements This is when I knew that my focus of 100 getting the Right Who on board mattered I trusted everyone VU V Y LHT H YHURSPU V UZ V JHYL MVY T ZVU V Y MHTPS HUK TL OL HSS Q TWLK PU V HJ PVU by putting their own lives aside to ensure that my family the client family received every detail of what I needed to pay tribute to my combat veteran son This is because of you Mel as you have set H WH O MVY HSS V MVSSV HUK SL TL LSS V P TH LYZ HUK THKL H KP LYLUJL I am continually amazed of the truth in all of this Honesty integrity and quality in all that we do is a real thing that matters Hard work and shared success through employee ownership is actually a fact and proven through actions for example compensation being recognized and treated with respect by leadership Outstanding service and WYV HIPSP NV OHUK PU OHUK proven by numbers they do not lie Growth of the company is driven by decentralization and partnership the realization and understanding of this concept inspires and creates a drive to succeed and it is proven Page 42 CARRIAGE SERVICES 2021 Annual Report

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Z H VVK V YLH 00 YLJPWPLU 0 T Z ZH OHUR V SV KS Where is there in the funeral industry that this would even be a possibility Then you and your SLHKLYZOPW LHT JYLH LK H L LHY WH MVY Z Z HPULK OPNO WLYMVYTHUJL PUJLU P L WSHU 0 OHK UV PKLH OLU SVVRPUN MVY H JOHSSLUNL OH 0 V SK UK HU VWWVY UP ZV HTHaPUN M S SSPUN HUK IL VUK my expectations Being a part of the achievement of a company whose Mission is Being The Best is truly inspirational and a driver to actually Be The Best Kristi Ah You Energy The passion and drive to get the job done Energize How a leader motivates and gets others excited Edge OL KL LYTPUH PVU V THRL KP J S KLJPZPVUZ Execute The ability to carry out the plan and deliver results The 4E s are simple to follow and carry out given the support of Houston Leadership Please share with them that they matter as I certainly appreciate all that they do to help us carry out the simple goal of caring for families Working for and with Carriage Services has been an amazing journey and I am blessed to be a part of this outstanding company Here s to at least 20 more years Kristi Ah You CARRIAGE SERVICES 2021 Annual Report Page 43

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Acknowledgments 3ULRU WR VWDUWLQJ DUULDJH LQ DW DJH KDG DOUHDG OLYHG WKURXJK PDQ XQLTXHO LQWHUHVWLQJ DQG HGXFDWLRQDO FKDSWHUV LQ P OLIH DQG KDG EHHQ H SRVHG WR D QXPEHU RI LFRQLF EXVLQHVV OHDGHUV DQG HQWUHSUHQHXUV 7KHVH LQFOXGHG RZDUG 0DUVKDOO GHFHDVHG OEHUW OEHN GHFHDVHG DQG VVDP DUHV DOO RI whom I worked for none of which I have mentioned before but each of which had a decisive impact on P ZHDOWK RI H SHULHQFH WXUQLQJ DURXQG DQG QDQFLDOO UHVWUXFWXULQJ FRPSDQLHV IRU VRPHRQH HOVH DQG WKHUHIRUH P VXEVHTXHQW FDUHHU FKRLFHV LQFOXGLQJ WR VWDUW DQG EXLOG DUULDJH IURP VFUDWFK DVW HDU LQ P 6KDUHKROGHU HWWHU DFNQRZOHGJHG HQ RYH GHFHDVHG 3HWHU GH 6DYDU 5LFKDUG 5DLQZDWHU GHFHDVHG DQG U KLKLUR DQDJDZD DOO RI ZKRP KDG KXJHO SRVLWLYH LPSDFWV RQ P OHDGHUVKLS VW OH DQG WKLQNLQJ SULRU WR VWDUWLQJ DUULDJH 6R WKLV HDU ZLOO DFNQRZOHGJH RQO WKRVH ZKR KDYH KDG D PDMRU SRVLWLYH LPSDFW RQ P WKLQNLQJ DQG WKHUHIRUH P EHKDYLRU DV DQ HQWUHSUHQHXULDO OHDGHU DQG LQYHVWRU VLQFH VWDUWLQJ DUULDJH RYHU WKLUW HDUV DJR Bob Waltrip RXQGHU 3LRQHHULQJ 9LVLRQDU DQG KDLUPDQ PHULWXV RI 6 RE DQG GHYHORSHG D VSHFLDO DQG GHHS SHUVRQDO UHODWLRQVKLS RYHU WKH HDUV HVSHFLDOO DIWHU RXU VHFWRU FUDVKHG LQ IURP VHOI LQ LFWHG LQMXULHV VXUYLYRU ERQGLQJ KDYHQ W EHHQ DEOH WR YLVLW P GHDU IULHQG DJH IRU HDUO PRUQLQJ FRIIHH DQG OLYHO FRQYHUVDWLRQ VLQFH WKH 29 3DQGHPLF EHJDQ VR ZLOO VLPSO wish him good health and high spirits until that day when we can again get together to share our XQEHOLHYDEOH VWRULHV Alan Weber Tom Tryforos and Will Thorndike who each have contributed immensely to my education and knowledge about the critical importance of capital allocation to superior long term VKDUHKROGHU LQYHVWPHQW UHWXUQV ODQ DPD LQJO UVW IRXQG DUULDJH LQ WKH HDUO WR PLG V ZKHQ ZH ZHUH HPHUJLQJ IURP HDUV RI UHVWUXFWXULQJ DQG WXUQDURXQG ZRUN IURP WKH V FRQVROLGDWLRQ PDQLD DQG PDUNHW FUDVK LQ ODQ UVW ERXJKW RXU VKDUHV ZKHQ WKH ZHUH GHHS FKHDS EHFDXVH ZH KDUGO KDG DQ UHH DVK ORZ WR DOORFDWH Alan called me around 2013 and asked whether I had read the book The Outsiders E LOO 7KRUQGLNH VD LQJ

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7KDQN RX ODQ 7RP DQG LOO DV RXU ZRUN DQG UHPDUNDEOH LQYHVWPHQW UHWXUQV RQ WKH ZLVGRP DQG value of capital allocation together with your generous friendship when needed most have made DQG ZLOO FRQWLQXH WR PDNH IRU PDQ HDUV D KXJH GLIIHUHQFH LQ WKH DSLWDO OORFDWLRQ 6WUDWHJ DQG 6KDUHKROGHU 9DOXH UHDWLRQ HFXWLRQ DW DUULDJH Dick Strong and Tony La Russa ZKR KDYH EHFRPH P GHDU IULHQGV DIWHU ZDV UVW LQYLWHG WR DWWHQG LFN V WK LUWKGD 3DUW LQ DV 9HJDV LQ 0D DQG WKHQ ODWHU LQYLWHG E KLP WR DWWHQG WKH 7RQ D 5XVVD HDGHUV DQG HJHQGV RQIHUHQFH LQ DV 9HJDV LQ 1RYHPEHU DFNQRZOHGJHG LFN LQ my 2016 Shareholder Letter for his personal encouragement to me beginning about twenty years ago DIWHU DUULDJH V VKDUHV DORQJ ZLWK WKRVH RI DOO WKH RWKHU SXEOLF GHDWKFDUH FRQVROLGDWRUV KDG FUDVKHG IURP WKH OHYHUDJHG DFTXLVLWLRQ PDQLD RI WKH V Dick Strong was the ONLY PDMRU LQVWLWXWLRQDO LQYHVWRU ZKR FDPH SHUVRQDOO WR YLVLW PH ZLWK ZRUGV RI HQFRXUDJHPHQW DQG ZLVGRP DIWHU RXU VKDUHV KDG ERWWRPHG DW SHU VKDUH LQ XJXVW DQG WKHQ PRYHG LQWR WKH EURNHQ FRPSDQLHV VKDUH SULFH QHLJKERUKRRG RI WR SHU VKDUH IRU WKH QH W WHQ HDUV H FHSW IRU EULHI SHULRGV RI WLPH 2Q HDFK YLVLW LFN ZRXOG DOZD V DVN RZ PDQ 3OD HUV GR RX KDYH QRZ KDW V IDVFLQDWLQJ DERXW LFN V TXHVWLRQ WKHQ DQG QRZ ZDV WKDW DIWHU GLWFKHG WKH FODVVLF SHUIRUPDQFH PDQDJHPHQW V VWHP RI D FHQWUDOL HG XGJHW DQG RQWURO 0RGHO LQ XJXVW DQG WKHQ LQQRYDWHG RXU XQHUDO 6WDQGDUGV 2SHUDWLQJ 0RGHO HIIHFWLYH DQXDU GLGQ W UHDOO NQRZ what the characteristics of an A Player were that could achieve a high level of Standards Achievement XQGHU WKLV UDGLFDOO GHFHQWUDOL HG EXVLQHVV PRGHO 6R ZDV VLPSO JXHVVLQJ DW WKH QXPEHU RI 3OD HU HDGHUV KDG ERWK LQ RXU SRUWIROLR RI EXVLQHVVHV DQG LQ RXU FRUSRUDWH OHDGHUVKLS WHDPV It took years of performance data and analysis along with updating and evolution of the Funeral LJK 3HUIRUPDQFH 6WDQGDUGV HPHWHU 6DOHV RQO UHFHQWO XQGHU DUORV OHDGHUVKLS WKHQ DGRSWLRQ LQ RI RXU HDGHUVKLS 0RGHO WR GHWHUPLQH WKDW RXU QHZ EXVLQHVV PRGHO ZDV EHVW H HFXWHG by entrepreneurial leaders committed to growing their market share and compounding long term UHYHQXH JURZWK ZLWK VXVWDLQDEO KLJK LHOG 7 0DUJLQV WKURXJK KLJK SHUIRUPDQFH WHDPV RI HPSOR HHV H MXVW QLVKHG D WKUHH GD 0DQDJLQJ 3DUWQHUV 0HHWLQJ 5 GJH RUXP LQ RXVWRQ ODVW ZHHN UVW LQ DOPRVW HDUV DQG FDQ QRZ WHOO LFN WKDW ZH KDYH D FRPSDQ IXOO RI 3OD HUV LQ DOO WKH FULWLFDO OHDGHUVKLS UROHV DFURVV DUULDJH DQG LQ RXU RXVWRQ 6XSSRUW HQWHU Q IDFW DUULDJH is receiving a lot of buzz in the industry as the company where A Player talent can make a difference with their contribution to our already high performance and get generously rewarded and recognized OLNH QRZKHUH HOVH LQ WKH KLVWRU RI RXU LQGXVWU 7RQ D 5XVVD DQG EHFDPH IULHQGV DW KLV FRQIHUHQFH LQ 1RYHPEHU KDG SDUWLFLSDWHG WKH SULRU GD RQ D SDQHO RI IRXU SXEOLF FRPSDQ 2 V ZKRVH PRGHUDWRU ZDV LFN 6WURQJ ZKR KDG EHHQ D ELJ KLVWRULFDO VXSSRUWHU RI 7RQ DQG KLV HDGHUV DQG HJHQGV RQIHUHQFH WKDW UDLVHG PRQH IRU WKH QLPDO 5HVFXH RXQGDWLRQ 5 IRXQGHG E 7RQ DQG KLV ZLIH ZKHQ KH ZDV 0DQDJHU RI WKH 2DNODQG V LQ WKH ODWH V Q UHVSRQVH WR D TXHVWLRQ E LFN DERXW WKH UVW WLPH RXU VKDUHV KLW SHU VKDUH LQ XJXVW PDGH DQ DQDORJ RI EXLOGLQJ D QHZ SHUIRUPDQFH IRXQGDWLRQ IRU DUULDJH E FUHDWLQJ D KDQGIXO RI KLJK SHUIRUPDQFH VWDQGDUGV IRU RXU IXQHUDO KRPHV LQ WKDW were equivalent to a language of high performance customized to attract the most entrepreneurial OHDGHUVKLS WDOHQW IRU HDFK EXVLQHVV ZKLFK FRPSDUHG WR WKH KDQGIXO RI GLVFLSOLQHG SUDFWLFHV DORQJ ZLWK D PLQGVHW WKDW 5LFN HQGHUVRQ KDG DUWLFXODWHG DV FULWLFDO WR KLV KLWWLQJ VXFFHVV WKH GD EHIRUH LQ D SDQHO GLVFXVVLRQ E WKUHH DOO RI DPH KLW SOD HUV CARRIAGE SERVICES 2021 Annual Report Page 45

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CARRIAGE 2021 PINNACLE OF SERVICE AWARD WINNERS HIGH PERFORMANCE HEROES In alignment with our 2021 theme of Accelerating High Performance Flywheel Effect I am honored to UHFRJQL H EXVLQHVVHV IXQHUDO KRPHV DQG FHPHWHULHV WKDW HDUQHG 3LQQDFOH ZDUGV DQG Being The Best 6WDQGDUGV FKLHYHPHQW RQXVHV IRU WKH 0DQDJLQJ 3DUWQHUV DQG HPSOR HHV IRU HDFK EXVLQHVV 7KLV group of High Performance servant leaders and their teams of employees embody the innovative concepts DQG VRSKLVWLFDWHG LGHDV RI RXU DUULDJH High Performance Culture DQG RXU 0LVVLRQ DQG 9LVLRQ RI Being The Best LQ HYHU WKLQJ WKH GR IRU WKLV QREOH SXUSRVH RI KHOSLQJ IDPLOLHV LQ QHHG 7KH 3LQQDFOH ZDUG ZLQQHUV LQFOXGHG EXVLQHVVHV IXQHUDO KRPHV DQG FHPHWHULHV ZKLFK DYHUDJHG 6WDQGDUGV FKLHYHPHQW RYHU WKH HDUV RI WKHVH EXVLQHVVHV DOVR DFKLHYHG LQ XQGHU WKH XSGDWHG UHERRWHG 3HUIRUPDQFH 6WDQGDUGV DQG EXVLQHVVHV IXQHUDO KRPHV DQG FHPHWHULHV ZKLFK KDG 6WDQGDUGV FKLHYHPHQW LQ As an essential part of High Performance Culture tradition and language and our passionate conviction that RECOGNITION LV WKH KLJKHVW IRUP RI PRWLYDWLRQ OLVWHG EHORZ DUH DUULDJH V Being The Best Pinnacle of Service Award Winners IRU 2021 Being The Best Pinnacle Of Service Award Winners Tim Hauck Benjamin Friberg Ken Summers Alan Kerrick Loren Forastiere Cyndi Hoots Mike Conner John Appel Jenny Chen Ashley Vella Kevin Latham Brent Harrison Adam Mills Larry Davis David Salove Kim Mulkey Anthony Rodriguez Dorn Rademacher Jeff Seaman Linda Newsom Johnny Garcia John Bresnahan Joseph Waterwash Andrew Cumby Troy Knutson David DeRubeis Michael Relyea Bob Thomas David Feeney Cesar Gutierrez 4XDOL HG IRU XVLQHVVHV HH RXQW UHPDWLRQ 6HUYLFHV DUYH QJHOKDUGW XOOHU 0HW HULWDJH XQHUDO RPH DQG UHPDWRU 3 U 6RQV DNDQ XQHUDO KDSHO RUDVWLHUH URXS Schmidt Funeral Homes RQQHU HVWEXU XQHUDO RPH DUGHQ RI 0HPRULHV XQHUDO RPH UDQW 0LOOHU KDSHO HHJDQ XQHUDO KDSHOV 0DGGX XTXD LQWRQ XQHUDO RPHV UHVSR LUUHOV ODFLHU 0HPRULDO DUGHQV XQNHUV DQG RRGODZQ HPHWHULHV Bunkers Mortuaries ORYHUGDOH HPHWHULHV Sterling Funeral Homes Higgins Mortuary 5HO HD XQHUDO KDSHO ZD QH 5 6SHQFH XQHUDO RPHV DZWRQ 5LWWHU UD XQHUDO RPHV HEDOORV LD XQHUDO RPH HYDQQ RQGURQ XQHUDO RPH DLUG DVH RUGDQ DQQLQ XQHUDO RPH UHPDWLRQ HQWHU XPE DPLO XQHUDO RPHV XVWLQ XQHUDO RPH ROXPELD 0RUWXDU RG KLWH XQHUDO RPH RQUDG 7KRPSVRQ XQHUDO RPH Malone Funeral Home Feeney Funeral Home Heritage Dilday Memorial Services 6WDQGDUGV RXQFLO 0HPEHUV CARRIAGE SERVICES 2021 Annual Report Page 47

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Being The Best Pinnacle Of Service Award 100 of Standards Award Jason Higginbotham James Terry Steven Mora James Bass Robert Maclary Justin Luyben Courtney Charvet Brian Binion Jason Cox Trent Nielsen Nicholas Welzenbach Kristi Ah You Matthew Simpson Kim Borselli Christine Amittone Andy Shemwell Betty Cundiff Curtis Ottinger Chad Woody 4XDOL HG IRU XVLQHVVHV Lakeland Funeral Home DPHV 7HUU XQHUDO RPH RQHMR 0RXQWDLQ XQHUDO RPH PHUDOG RDVW 0F DXJKOLQ 0RUWXDU 0F DXJKOLQ 7ZLQ LWLHV XQHUDO RPH DQG UHPDWRU HQW RUHVW DZQ XQHUDO RPH YDQV URZQ 0RUWXDULHV UHPDWRU 1RUWK UHYDUG XQHUDO RPH Steen Funeral Homes DQH XQHUDO RPH 6RXWK UHVW KDSHO HQQHVVH 9DOOH XQHUDO RPH UHPDWRU RV DWRV 0HPRULDO 3DUN UDQNOLQ RZQV XQHUDO RPHV U 0HPRULDO KDSHO XOOHU XQHUDO RPH UHPDWLRQ 6HUYLFH UHHU 0RUWXDU 1HDO 7DUSOH 3DUFKPDQ XQHUDO RPH Lotz Funeral Home Heritage Funeral Home 5LFKPRQG RXQW 0HPRULDO 3DUN 6WDQGDUGV RXQFLO 0HPEHUV Being The Best Pinnacle 100 of Standards Award Buddy Ewing Michael Kelly Tripp Carter Geneva Gullion Chitty Rick Garofola Steven Mora David Salove Brad Shemwell Courtney Charvet Robert Coleman 4XDOL HG IRU XVLQHVVHV Page 48 CARRIAGE SERVICES Seaside Funeral Homes Rose Hill Memorial Park 6HDVLGH HPHWHULHV Resthaven Funeral Home 5HVWKDYHQ 0HPRU DUGHQV UDGVKDZ DUWHU 0HPRULDO XQHUDO 6HUYLFHV DUOLQJ LVFKHU DUGHQ KDSHO DJQDVFR DOFDWHUUD XQHUDO RPHV RQHMR 0RXQWDLQ 0HPRULDO 3DUN ORYHUGDOH XQHUDO RPH LOOFUHVW 0HPRULDO DUGHQV Latham Funeral Home 2DNODZQ 0HPRULDO DUGHQV 0DXVROHXP 6XOOLYDQ HPHWHULHV 6WDQGDUGV RXQFLO 0HPEHUV 2021 Annual Report

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CARRIAGE 2021 GOOD TO GREAT AWARD WINNERS 2XU YH HDU LQFHQWLYH DZDUG FDOOHG WKH Good To Great Award is directly linked to our annual Being The Best Pinnacle Award ZKLFK LWVHOI LV OLQNHG WR LJK XQHUDO 6WDQGDUGV FKLHYHPHQW RYHU D IXOO HDU L H RXU Good To Great Awards require high and sustained Being The Best Standards Achievement RYHU D IXOO YH HDUV H KDYH KDG PDQ ZRQGHUIXO SHUIRUPDQFHV VLQFH WKH VWDUW RI RXU Good To Great Journey in 2017 E LJK 3HUIRUPDQFH HUR XQHUDO DQG HPHWHU 0DQDJLQJ 3DUWQHUV DQG 6DOHV 0DQDJHUV DQG WKHLU WHDPV RI ZLQQLQJ HPSOR HHV VR DP PRUH WKDQ KRQRUHG WR DQQRXQFH RXU IWK JURXS RI Good To Great Award Winners that sustained a high level of Standards Achievement and Financial Performance while compounding UHYHQXH DW IRU WKH YH HDU WLPHIUDPH WKDW EHJDQ LQ DQG HQGHG DW HDU HQG DV OLVWHG EHORZ Tim Hauck Dorn Rademacher Kristi Ah You Jim Pitts Justin Luyben Steven Mora Courtney Charvet Ken Summers John Bresnahan Ashley Vella Kim Mulkey Jason Higginbotham Jason Cox Betty Cundiff Robert Maclary Brad Shemwell Chuck Williamson Michael Relyea James Bass Michael Bell David Williams Joseph Waterwash Jeff Seaman Linda Newsom Chad Woody Bob Thomas Cesar Gutierrez Wayne Lovelace David Feeney David DeRubeis Brian Binion Joseph Newkirk Michele Wegner 4XDOL HG IRU XVLQHVVHV HH RXQW UHPDWLRQ 6HUYLFHV DUYH QJHOKDUGW XOOHU 0HW 5HO HD XQHUDO KDSHO UDQNOLQ RZQV XQHUDO RPHV Buck Ashcraft San Benito Funeral Home YDQV URZQ 0RUWXDULHV UHPDWRU RQHMR 0RXQWDLQ XQHUDO RPH 1RUWK UHYDUG XQHUDO RPH 3 U 6RQV HYDQQ RQGURQ XQHUDO RPH HHJDQ XQHUDO KDSHOV Sterling Funeral Homes Lakeland Funeral Home DQH XQHUDO RPH 6RXWK UHVW KDSHO Lotz Funeral Home HQW RUHVW DZQ XQHUDO RPH Latham Funeral Home LOOLDPVRQ 6RQV XQHUDO RPH RQUDG 7KRPSVRQ XQHUDO RPH PHUDOG RDVW 0F DXJKOLQ 0RUWXDU UHPDWLRQ 6RFLHW RI GDKR Rader Funeral Home DLUG DVH RUGDQ DQQLQ XQHUDO RPH UHPDWLRQ HQWHU ZD QH 5 6SHQFH XQHUDO RPHV DZWRQ 5LWWHU UD XQHUDO RPHV DWVRQ LQJ XQHUDO RPHV Malone Funeral Home Heritage Dilday Memorial Services RW XQHUDO RPH 9LQWRQ 9 Feeney Funeral Home RG KLWH XQHUDO RPH Steen Funeral Homes LYLF HQWHU KDSHO XFNOHU RKQVWRQ YHU XQHUDO RPHV 6WDQGDUGV RXQFLO 0HPEHUV CARRIAGE SERVICES 2021 Annual Report Page 49

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An Unbreakable Union of Belief

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Corporate Information Carriage Services is a leading provider of funeral and cemetery services and merchandise in the United States As of December 31 2021 Carriage operated 170 funeral homes in 26 states and 31 cemeteries in 11 states Board of Directors Executive Leadership Team Melvin C Payne Melvin C Payne Chief Executive Of cer and Chairman of the Board Chief Executive Of cer and Chairman of the Board Bryan D Leibman Carlos Quezada President and Chief Executive Of cer Frosch Travel President and Chief Operating Of cer Barry K Fingerhut Executive Vice President Chief Financial Of cer and Treasurer Chief Executive Of cer Certi cation Partners LLC Douglas B Meehan Deputy Chief Investment Of cer van Biema Value Partners LLC Dr Achille Messac Former Dean of Engineering at Howard University and Mississippi State University C Benjamin Brink Steven D Metzger Executive Vice President Chief Administrative Of cer General Counsel and Secretary Paul D Elliott Senior Vice President and Regional Partner Shawn R Phillips Senior Vice President and Regional Partner Donald D Patteson Jr Shane T Pudenz Former Chief Executive Of cer and Chairman of the Board Sovereign Business Forms Inc Vice President of Sales and Marketing Advisor to the Board of Directors Peggy Schappaugh Vice President of Operations and Acquisitions Analysis Member Strategic Vision and Principles Group Gregory R Brudnicki Mayor of Panama City Florida Transfer Agent Registrar Grant Thornton LLP Houston Texas American Stock Transfer Trust Company LLC 6201 15th Avenue Brooklyn New York 11219 800 937 5449 www amstock com Form 10 K Availability Houston Support Of ce The Company s Annual Report on Form 10 K for the year ended December 31 2021 may be obtained by writing to Investor Relations Carriage Services Inc 3040 Post Oak Boulevard Suite 300 Houston Texas 77056 via the Company s website www carriageservices com or via the SEC s website www sec gov Carriage Services Inc 3040 Post Oak Boulevard Suite 300 Houston Texas 77056 713 332 8400 www carriageservices com Independent Public Accountants Common Stock Carriage Services Inc s common stock is traded on the New York Stock Exchange under the symbol CSV Forward Looking Statements Statements made in this Annual Report that are not historical facts are intended to be forward looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 These statements are based on assumptions that the Company believes are reasonable however many important factors including factors not in our control or as discussed under Forward Looking Statments in the Company s Form 10 K for the year ended December 31 2021 could cause the Company s results to differ materially from the forward looking statements made herein and in any other documents or presentations made by or on behalf of the Company

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CARRIAGE SERVICES INC 3040 Post Oak Boulevard Suite 300 Houston Texas 77056 713 332 8400 www carriageservices com