HILLENBRAND, INC. 04 B ATESVILLE Focusing on Customer Needs  to Drive Growth photographs. After the service, replica medallions can serve  as keepsakes for family members and friends. In 2011, the  number of models including these features grew to allow  personalization at a wider variety of price points. Batesville’s philosophy for success is simple: Improve the  quality of funerals and increase the profitability of funeral  homes. For more than a century, the Batesville team has  built and maintained relationships with funeral directors,  providing high-quality, innovative products and services  that meet evolving consumer needs. The industry’s largest  sales force supplies merchandising support and training to  funeral homes that serve communities throughout the  nation. And Batesville’s high-velocity hub and spoke distri- bution system ensures that its customers, who often don’t  have the luxury of time when a family is grieving, receive  the right product at the right time more than 99 percent of  the time.  Arecognized expert in the lean business philosophy,  Batesville improves manufacturing and distribution proc- esses year after year. Its award-winning plant and logistics  teams have been honored for their innovation, quality and  safety by numerous organizations. These practices help the company remain profitable when commodity costs,  primarily for fuel and steel, have been particularly volatile. Batesville continually holds the line in an industry  where an increasing consumer preference for cremation and  a flat number of deaths have caused a modest decline in the  E F N B O E G P S C V S J B M D B T L F U T  # B U F T W J M M F T D P S F Q S P E V D U M J O F This creates an increasingly competitive environment for  funeral directors and their suppliers. A lthough burials have declined, Batesville continues  to invest in differentiated products that give families  choices for memorializing their loved ones. For example,  there is an increasing desire among families to personalize  the service to reflect the loved one’s life and interests. One  of the company’s fastest-growing product lines has been its  LifeStories® and LifeView® caskets, which allow families to  personalize the lid of the casket during the viewing and  service with bronze medallions or an array of personal  Batesville continues to be a strong, industry-leading  business that is well-positioned to drive ongoing innovation  and growth within funeral service. At the same time, its  experienced staff and strong financial position serve as the foundation for Hillenbrand’s strategy to build a more  diverse enterprise that will generate even greater share- holder value. t Batesville’s new Endura® vault has the potential to  transform the burial vault business.  This strong, light- weight, durable product has a competitive advantage  over concrete, and it is beginning to get a solid footing in  the marketplace. t As the leader in designing and hosting funeral home  websites, Batesville Interactive continues to develop  ways for funeral directors to support families, while also  providing potential new revenue streams.  t Personalization in the Options cremation product  line  also has been successful, with an increasing variety  of keepsake choices. Options owes much of its growth in  2011 to the team’s focus on supporting funeral directors  with an innovative education and merchandising system  to help families make an informed decision when they  choose cremation. In an industry that’s traditionally slow to change,  Batesville is beginning to see results from several growth  businesses that offer transformational approaches to  familiar products and services. 