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## DEAR FELLOW SHAREHOLDER: 

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. 

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## 2008: Batesville Provides a Solid Foundation for Growth 

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: 

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. 

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. 

## 2011: Our Dual-Platform Enterprise Provides Strong Results 

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. 

