DEAR FELLOW SHAREHOLDER: 2008: Batesville Provides a Solid Foundation for Growth 2011: Our Dual-Platform Enterprise Provides Strong Results Our 2011 fiscal year was a successful one, characterized by strong  revenue growth and worldwide expansion as we continued our  transformation into a global diversified manufacturing enterprise.  Our progress over the past three years has been substantial. In 2008 we became a public company, well-known for the strong leadership,  high-quality products and unparalleled service standards of the funeral service  industry’s most iconic brand: Batesville. For more than a century, we’ve been  committed to making the funeral process better for funeral directors and the  families they serve. As the leader in the casket industry, we have a proven history of generating  strong, predictable cash flow by operating effectively and efficiently. Three  enduring core competencies drive these high levels of achievement:  Although the impact of baby boomers on the casket industry should increase  demand in the coming years, our growth prospects are limited in this mature  market. It was clear when we looked at the future of our company that we would  need to seek expansion outside the funeral products business. We believed we  could invest our considerable cash and leverage our core competencies in other  business-to-business manufacturing companies to help them grow, increase their  profitability and generate shareholder value. It became our mission not just to  acquire, but to use our core competencies to help each of our companies realize  its full potential.  In April 2010, we acquired K-Tron International, which makes gravimetric and  volumetric feeders, pneumatic conveyors and size reduction equipment used in a  wide variety of industries. This was followed 17 months later by our acquisition  of Rotex, a leading manufacturer of screening and separation equipment.  Together, they comprise a single business platform, the Process Equipment  Group, which gives us access to a more diverse domestic and global marketplace  in growing industries. Previously, we derived 100 percent of our revenue from  Batesville. In fiscal 2011, nearly one-third of our sales came from the new process  equipment business platform. It was a big step for us, and we are excited about  the opportunities it has opened up for us. t 4 U S B U F H Z N B O B H F N F O U  which sharpens our focus on the critical objectives that  provide the greatest competitive leverage and generate the best results; t - F B O C V T J O F T T  a philosophy that allows us to continuously find ways to elimi- nate waste, improve quality and increase operational efficiencies; and t * O U F O U J P O B M U B M F O U E F W F M P Q N F O U  which ensures we consistently recruit, develop  and retain top talent, while providing a strong pipeline for succession planning.