Investor PresentationMarch 2020

Honesty | Integrity | Quality in All That We Do

2

Cautionary Statement on Forward Looking Statements and Disclosure of Non-GAAP Performance Measures

Certain statements made herein or elsewhere by, or on behalf of, the Company that are not historical facts are intended to be forward‐looking statements

within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These

statements are based on assumptions that the Company believes are reasonable; however, many important factors, as discussed under “Risk Factors” and

“Forward‐Looking Statements” in the Company’s Annual Report on Form 10‐K for the year ended December 31, 2018 and the Quarterly Reports on Form 10-Q

could cause the Company’s 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.

Forward-looking statements contained herein regarding acquisitions include assumptions about the pricing, timing, terms and conditions of such acquisitions,

our ability to close such acquisitions, and the anticipated benefits, impacts and synergies of the acquisitions. We can provide no assurances that our growth

strategy will be successfully implemented. In particular, we can provide no assurances that we will find additional attractive acquisition targets in the future, that

we will succeed in negotiating the terms and conditions reflected in the model, or that we will execute any acquisitions during the next five years. Forward-

looking statements contained herein regarding the performance of our acquisition and same store businesses include assumptions related to future revenue

growth. We can provide no assurances that our acquisition and same store businesses will generate the revenue growth set forth herein, or any revenue growth

at all. The Company assumes no obligation to update or publicly release any revisions to forward-looking statements made herein or any other forward‐looking

statements made by, or on behalf of, the Company.

This presentation uses Non-GAAP financial measures to present the financial performance of the Company. Non-GAAP financial measures should be viewed in

addition to, and not as an alternative for, the Company’s reported operating results or cash flow from operations or any other measure of performance as

determined in accordance with GAAP. We believe the Non-GAAP results are useful to investors because such results help investors compare our results to

previous periods and provide insights into underlying trends in our business. In addition, the Company’s presentation of these measures may not be comparable

to similarly titled measures of other companies. Pursuant to the requirements of Regulation G, the Company has provided quantitative reconciliations within the

most current press release and on our Investor Relations page of the website of the non-GAAP financial measures to the most directly comparable GAAP

financial measures.

A copy of the Company’s Annual Report, Form 10‐K ended December 31st, 2019, and other Carriage Services information and news releases, are available atwww.carriageservices.com

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I. Carriage Services Overview

Carriage Services is a leading owner and operator of funeral homes and cemeteries in the United States and one of the largest consolidators in our industry.

Long Term Organic Revenue Growth at High EBITDA Margins

supported by Favorable Demographic Trends

The Most Attractive Succession Planning Solution for Leading

Independent Businesses

Industry leading Operating Results driven by Execution of our

Standards Operating Model

Favorable Consolidation Landscape in a Highly Fragmented Industry

Entrepreneurial Decentralized High-Performance Culture Attracts

and Retains Top Industry Talent

4

5

Who is Carriage Services?

• Carriage Services currently operates 219 funeral homes & cemeteries in 29 states

• Founded in 1991; 2nd longest tenured consolidator in our industry

• High Performance Culture company in the funeral & cemetery industry

Committed to “Being The Best”:• Funeral Home & Cemetery Operating Company• Consolidator of Independent Family Businesses • Shareholder Value Creation Platform

Driven by our Five Guiding Principles:• Honesty, Integrity, & Quality in All That We Do • Growth of the Company is Driven by Decentralization & Partnership• Belief in the Power of People through Individual Initiative & Teamwork• Outstanding Service & profitability Go Hand-In-Hand• Hard work, Pride of Accomplishment, & Shared Success Through Employee Ownership

Carriage’s corporate strategy is defined by our three core models:1. Standards Operating Model2. 4E Leadership Model 3. Strategic Acquisition Model

6

Our Leadership Team

High Performance Culture Framework

7

8

$0

$5

$10

$15

$20

$25

$30

Implemented Innovative Funeral Standards Operating

Model — Abandoned “Budget & Control” model of operating

funeral homes/cemeteries

Industry leading Adjusted Consolidated

EBITDA Margin

Created Strategic Acquisition Model & began to grow

selectively

Conviction that Carriage had to become a good

operating company before being a good

consolidation company

Carriage Services 2020: Transformative High Performance – Good To Great Journey – Part II

Operational Leadership

transformation

1991 1996 1999 2003 2004 2008 2009 2011 2012

2018

2007

$28.78$28.44

$1.19

$10.89

$1.41

Launched First Five-Year Carriage Good To Great Journey: A New Beginning

Industry market crash in 1999 forced a

multi year deleveraging process-last industry

equity raise August 1999 by STEI

Founded as an acquisition company to consolidate fragmented

Funeral & Cemetery industry

Assumed control of preneed trusts investment

strategy and execution

Ceased Acquisitions and instead

acquired 15% CSV shares outstanding

for $10 million

IPO, August ‘96, participated in

EPS driven acquisition mania fueled by cheap

equity/debt

Our Learning Journey

2016

$20.83

2020

9

Carriage Services Overview

Operating Segment Overview (Proforma 2020)1

Track Record of Long-Term Revenue Growth

Revenue/ Field Level EBITDA2

Funeral75%

Cemetery 25%

$168 $177 $178 $185 $191 $204 $213 $226 $243 $248 $258 $268 $274 $317 $322 $330

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Note: Figures shown in millions.1 Includes Cemetery and Funeral same store and acquisition revenue / EBITDA

2 Excludes variable overhead, regional fixed overhead, and corporate fixed overhead costs

2007-2019 Revenue CAGR: 4.2%

Stock Valuation

Ticker CSV

Market Capitalization (Feb 28, 2020) 378M

Forward P / E 13.1x

Forward EV / EBITDA 9.4x

Diverse National Footprint

MA12

RI4

CT10

NJ5

MD1

10

187 Funeral Homes in 29 States32 Cemeteries in 12 states

San Jose/ Oakland19%

Washington/N. Virginia

10%NY City Metro

6%

Bristol/Springfield 6%

LA Metro 5%

New Orleans

5%

Houston Metro

4%

2019 Revenue by Large Strategic Market

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II. Recent Highlights

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Operational & Financial Highlights

Year Ended December 31, 2019 versus Year Ended December 31, 2018

• Total Revenue increased $11.0 million or 4.2% to $273.3 million;

• Total Field EBITDA increased $7.4 million or 7.2% to $110.3 million;

• Total Field EBITDA Margin increased 120 basis points to 40.4%;

• Consolidated EBITDA increased $8.2 million or 12.0% to $76.5 million;

• Consolidated EBITDA Margin increased 200 basis points to 28.0%; and

• Diluted Earnings Per Share increased $0.27 or 29.0% to $1.20.

Pro Forma Adjusted Final Results

2019 Operational Highlights

• Completed 4 large strategic acquisitions in Q4 2019; including Fairfax Memorial Park & Funeral Home; largest in CSV history

• Appointment of Bill Goetz as President, Chief Operating Officer, and member of the Board in Q4 2019

• Updated 2019 Standards Operating Model & Execution led to Record Consolidated EBITDA & Cemetery segment performance

• Field Margin improvement in all categories led to 200 bps increase in Consolidated EBITDA versus 2018

• Completed Acquisition Financing Transactions: $75 million add-on to existing 6.625% Senior Notes @ $104/Credit Facility Amendment

$60

$65

$70

$75

$80

2018 2019

$0.4

$0.8

$1.2

$1.6

2018 2019

Consolidated EBITDA

Diluted Earnings Per Share

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Strategic Acquisitions Overview Q4 2019

Funeral home and large cemetery based in Lafayette, CA

Family-owned funeral and cemetery business based in Rockwall, TX

Family-owned best-in-class funeral service provider in Buffalo, NY

Purchased from Stonemor Offers cremation and burial services, including ancillary services and businesses

Largest funeral home business in Western New York, serving approx. 2,000 families annually

Description

Strategic RationaleSolidifies footprint in strategic Bay Area. Growing affluent area w/high barriers to entry. Opportunities to improve funeral operation & cemetery sales under CSV leadership.

Large combination business in growing area with several unique to CSV ancillary businesses. Opportunity for CSV to grow in strategic Dallas market.

Large and fast-growing funeral home business with additional opportunities to expand in Greater Buffalo market.

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Description Strategic Rationale

• One of the largest privately owned combination business (funeral home & cemetery) remaining in the U.S.

• Based in Fairfax, VA

• Large acquisition in demographically attractive area with high barriers to entry.

• Multiple years of accretive organic growth opportunities.

• Once full integration in 2020, Fairfax will improve CSV Field EBITDA Margin and Organic Revenue CAGR

• Fairfax Memorial Park and Funeral Home represents the crown jewel of our Washington D.C./N. Virginia geographic capital allocation strategy. It currently performs about 850 cemetery interments and 900 funerals annually; whose combined revenue represents the largest single business acquired in the 28-year history of Carriage.

• Fairfax offers the highly unusual opportunity of having such a “Best in Class” reputation, strong competitive standing and demographic profile that the business should grow much larger over the long term

Strategic Acquisitions Overview Q4 2019

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Carriage 3 Year ‘Roughly Right’ Scenario

$20

$50

$80

$110

2016 2017 2018 2019 Est. 2020 Est. 2021 Est. 2022

Performance Outlook Scenario 2020 2021 2022

Total Revenue $315 - $319 $320 - $324 $328 - $332

Total Field EBITDA $127 - $131 $133 - $137 $139 - $144

Adjusted Consolidated EBITDA $92 - $96 $97 - $101 $102 - $106

Adjusted Consolidated EBITDA Margin 29% - 30% 30% - 31% 31% - 32%

Adjusted Diluted EPS $1.55 - $1.65 $1.92 - $2.10 $2.25 - $2.40

Adjusted Free Cash Flow $42 - $45 $53 - $56 $60 - $63

Total Debt Outstanding $480 - $490 $440 - $450 $390 - $440

Total Debt to Proforma EBITDA Multiple 5.0 - 5.2 4.3 - 4.5 3.8 - 4.0

Estimated CAGR: + 8% 2019 - 2022

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

2016 2017 2018 2019 Est. 2020Est. 2021Est. 2022

Estimated CAGR: +17% 2019 - 2022

Adjusted Diluted EPSAdjusted Consolidated EBITDA

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Capital Structure

*Proforma EBITDA is defined by credit facility calculation.

Pro Forma Capital Structure ( in millions)

6.625% Senior Notes (2025) $400

2.75% Convertible Notes (2021) $6

Revolver/Capital Leases/ Acquisition Debt Outstanding

$97

Total Debt Outstanding $503

Cash & Cash Equivalents (Q4 2019) $0.7

Revolver Availability (undrawn) $103

Shareholder Equity (Q4 2019) $227

4.4x

5.0x 5.0x4.9x

5.5x

5.1x

5.7x

4.5x

4.0x

4.4x

4.8x

5.2x

5.6x

6.0x

$0

$100

$200

$300

$400

$500

2013 2014 2015 2016 2017 2018 2019 Est 2022L

everage R

atio

Net

Deb

t (m

illio

ns)

Q4 2019 Updates:

Acquisitions financed through $75 million add-on to existing unsecured notes- Priced @ $104 to; yield 5.5%; high interest from current bond holders

Credit facility amended increase to $190 million; $100 million available liquidity

- Amended for higher maximum leverage ratio in 2020Pause M&A activity next 12 months to focus on integration and leverage reduction.

Future:

Senior Notes callable @ $104.969 in June 2021 potential for significantinterest cost savings/ ~$7 million based on current trading levelsAbility to rapidly reduce leverage (.5x per year) through growing & recurring Free Cash FlowLeverage below 4.5x in less than 2 years greater financial flexibility

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III. CSV Core Models

Standards Operating Model“Being The Best” Funeral and Cemetery Operating Company

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• Updated Q4 2019 for improved High-Performance Standards Execution in 2020 and beyond.

• Focus on Long Term Compound Revenue Growth

• Eight Funeral and four Cemetery operating standards that when achieved lead to high and sustainable financial performance.

• Decentralized Entrepreneurial Operating Model places operational control with local Managing Partner.

• Incentive Compensation for Managing Partners and their teams based on Standards Achievement.

New 2020 Funeral StandardsMarket Share Metrics — 60% (long term)

35% - 3 yr. Compound Revenue Growth (0-3+%)

15% - Annual Contract Volume Growth

10% - Service & Guest Experience

Financial Metrics — 40% (short term)

5% - Cremation Average Revenue Per Contract

5% - Gross Margin Range % of Revenue

10% - Salaries & Benefits Range % of Revenue

5% - Bad Debt % of Revenue

15% - EBITDAR Margin Range % Revenue

100% - Standards Achievement Total (50% Minimum)

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BEING THE BEST STANDARDS OPERATING MODEL

Funeral Home

Groupings

Group B C B C B C B C

Funeral Contracts 125 - 250 251 - 400 125 - 250 251 - 400 125 - 250 251 - 400 125 - 250 251 - 400

Group 1 2 3 4

ARPC <$4,500 $4,500 - $6,000 $6,001 - $7,500 >$7,500

Funeral Home

Standards

Gross Margin % 87 - 89% 87 - 89% 86 - 88% 86 - 88% 85 - 87% 85 - 87% 85 - 87% 85 - 87%

Salaries & Benefits % 29 - 31% 27 - 29% 26 - 28% 26 - 28% 26 - 28% 26 - 28% 26 - 28% 26 - 28%

Bad Debt % 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6%

Field EBITDAR % 36-40% 38 - 42% 37- 41% 39 - 43% 38 - 42% 40 - 44% 39 - 43% 40 – 44%

Operational Discipline

• All Funeral businesses are grouped on operational characteristics (e.g. Average Revenue per Contract & No. of Contracts).

• Standards are designed for flexible decentralized decision-making by our Managing Partners.

• Standards are Not designed for unsustainable maximum short term profitability i.e. 100% Standards Achievement.

• Goal of organic growth in Market Share and Revenue at sustainable high profit margins.

• Volume Growth driven by Market Share gains primary driver of local operating leverage.

• New Service & Guest Experience Standard focused on differentiated high value personal service at each Carriage funeral home.

Standards Operating Model“Being The Best” Funeral and Cemetery Operating Company

Strategic Acquisition ModelGrowth by Buying and Building a Portfolio

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Carriage is an attractive succession planning option for owners

of funeral homes and cemeteries due to the following:

• The decentralized Standards Operating Model,

• The Operational Support Center (Legal, HR, IT, Business

Analysis and Planning, Regulatory), and

• The significant improvement in operating performance

displayed in acquired businesses after integrating into the

Operational Support Framework (needs rewording)

The Model is used to assess strategic acquisition candidates

based on specific criteria including: market size, demographic

trends, client family revenue profile, institutional brand

strength, 10 year contract volume and 3 year revenue per

contract trends.

Strategic Ranking Criteria are highly predictive of future long

term revenue growth.

Final valuation of acquired businesses ensure Return on

Invested Capital is greater than our Cost of Capital in early years

and increases over time.

Weighting

1 Seller Motivation Alignment 5%

2 Large Strategic Market 15%

3 Large Strategic Business 15%

4 10 Years SS Volumes 15%

5 Average Revenue Per Contract 15%

6 Competitive Standing Trend 10%

7 Burial/Cremation Mix Trend 10%

8 Demographics Trends 5%

9 Institutional Brand Strength 5%

10 Barriers to Entry 5%

TOTAL 100%

Qualitative Strategic Ranking Criteria

Recent Acquisition History

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Conner-Westbury

Funeral Home

Mar 2012

James Terry

Funeral Home

Feb 2012

Gray Funeral Home

Lawton Ritter Gray Funeral Home

Sunset Memorial

June 2012

Schmidt Funeral Home

Sep 2012

Havenbrook

Funeral Home

Cumby Funeral

Homes

Crespo & Jirrels

Dec 2012

Everly Community

Everly Wheatley

Garden of Memories

Greenwood Funeral Home

Jacob Shoen & Son Funeral Home

Tharp-Sontheimer Funeral Home

May 2014

Heritage

Funeral Home

Nov 2013 Neal-Tarpley-Parchman

Funeral Home Feb 2015

Bright Funeral Home

Nov 2015

Jay Chapel

Sep 2016

Bradshaw-Carter Funeral Home

Cypress-Fairbanks Funeral Home

May 2016

Becker-Ritter Funeral Home

Rich & Thompson

Nov 2016

Thomas F. Dalton Funeral Homes

Dec 2017

Presley Funeral Home

Poole Funeral Home

Aug 2018

Carroll-Lewellen

Funeral Home

Viegut Funeral Home

Nov 2017

Covenant Funeral Services

Jun 2018

Lombardo Funeral Homes

Resthaven Funeral

Homes & Cemetery

Oct 2019

2012 2013 2014 2015 2016 2017 2018 2019 2020

Fairfax Memorial

Park & Funeral Home

Dec 2019

Oakmont Funeral

Home & Cemetery

Jan 2020

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IV. Historical Financial Results

Recurring & Growing Free Cash Flowallows Carriage to fund most acquisition activity, in addition to other investment activity that generate returns for shareholders (e.g. debt reduction, internal growth capital expenditures, share repurchases, dividends).

$22.9

$36.2$38.6

$45.2$47.6

$37.4

$42.7

$37.4

0.0%

10.0%

20.0%

30.0%

40.0%

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

2012 2013 2014 2015 2016 2017 2018 2019

Proforma Adjusted Free Cash Flow

Proforma Adjusted Free Cash Flow As a % of Revenue

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A Value Creation Investment Platform

24

Long Term track record of Revenue Growth at industry

leading Consolidated EBITDA Margins

A Value Creation Investment Platform

Note 1: Adjusted to exclude Non-GAAP Withdrawable Trust Income from Jan. 1, 2013 for comparative consistency with new reporting policy beginning in 2016.

$198$213

$226

$243 $248$258

$268 $273

$53 $56 $62$71 $74 $69 $70 $77

$0.80

$0.98

$1.34

$1.48

$1.62

$1.39

$1.17

$1.20

26.7% 26.3% 27.4% 29.3% 29.7% 26.6% 26.2% 27.9%

$0.00

$0.30

$0.60

$0.90

$1.20

$1.50

$1.80

$0

$50

$100

$150

$200

$250

2012 2013 2014 2015 2016 2017 2018 2019

Historical Financial Results

Total Revenue Proforma Adj. Consolidated EBITDA

Adjusted Diluted EPS Proforma Adj. Consolidated EBITDA Margin %

1

1

Declining Overhead as a % of Revenueensures Revenue grows at a significantly faster rate than Total Overhead so that the majority of Acquired and incremental Same Store Field EBITDA falls to Adjusted Consolidated EBITDA.

*2018 and Sep 2019 TTM Overhead excludes $3.3 million of non-recurring severance, litigation & natural disaster expenses

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$30.3

$33.0 $34.1

$34.7

$35.9 $36.4

$33.7 $34.3

15.3%15.5%

15.1%

14.3%14.5%

14.1%

12.6% 12.5%

11.0%

11.5%

12.0%

12.5%

13.0%

13.5%

14.0%

14.5%

15.0%

15.5%

16.0%

25.0

27.0

29.0

31.0

33.0

35.0

37.0

39.0

2012 2013 2014 2015 2016 2017 *2018 *2019

Leveraged Consolidation Platform

Overhead Overhead as a % of Revenue

A Value Creation Investment Platform

Standards Operating Model and High-Performance Culture make Carriage the most attractive succession planning solution for independent funeral and cemetery owners

Why Choose Carriage?

Decentralized, Entrepreneurial Standards Operating Model with linked incentive compensation make Carriage the best destination for top industry talent

Recurring Free Cash Flow facilitates majority of shareholder value creation through self-financed, disciplined capital allocation

Long term track record of leveraging mid single digit Revenue growth, into higher Adjusted Consolidated EBITDA growth, and even higher Adjusted Diluted EPS growth

Dedicated and tenured management team committed to long term shareholder value creation through differentiated performance because of our mission, purpose, principles and culture

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713-332-8400

InvestorRelations@CarriageServices.com

3040 Post Oak Blvd. Suite 300 Houston, TX 77056

www.CarriageServices.com

Honesty | Integrity | Quality in All That We Do