Crematory Equipment & Systems

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1 Welcome to the Brooklyn, New York Technology & Market Assessment Forum October 6-8, 2010 New York Marriott at the Brooklyn Bridge Crematory Equipment & Systems

2 Crematory Equipment and Systems Energy Solutions Center TMAF October 7, :15 11:55 am Brooklyn, New York U.S.A.

3 Following September 11, 2001, the US economy was severely depressed. Traditional industries serviced by Armil/CFS, Inc. since 1963 (i.e. heat treating, forging and investment casting) were struggling. Most manufacturers reduced expenditures on the purchase of new equipment; repairing existing equipment instead. The refractory repair of cremation chambers was a new market opportunity that Armil/CFS pursued. Existing cremation equipment by design was difficult and time consuming to repair. The industrial furnace manufacturing expertise offered by Armil/CFS was applied to improving cremation equipment and a new era of cremation products were created.

4 CFS-2300 Human Cremation Chamber Height 7-7 1/2 Width 6-4 Length 14-5 Weight 16,000 lbs Height 7-7 1/2 Width 6-4 Weight 12,000 lbs Length 10-6 Weight 12,000 lbs CFS-2300 Pet Chamber

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7 CFS-2300 Human Cremation Burner Size,.75 MMBtu After burner Size, 1.5 MMBtu Minimum 7 inches w.c. gas pressure Cremation Chamber 1800 F max Afterburner F Cremation Rate 150 lbs per hour Fuel used / 200 lb Case, 15 Therms CFS-2300 Pet Cremation Burner Size,.75 MMBtu After Burner Size, 1.5 MMBtu Minimum 7 inches w.c. gas pressure Cremation Chamber 1800 F max Afterburner F Cremation Rate 100 lbs per hour Fuel used /100 lb Case, 7-10 Therms

8 Three Particulate and Carbon Monoxide test runs were performed on a Cremation Systems, CFS-2300 cremation chamber. Parameter units Incinerator Stack Filterable Particulate Lbs/hour Average Carbon Monoxide Lbs/hour Average Typical requirements for most U.S.A. States and Canada are: Less than 20% opacity for smoke emissions Particulate Matter less than 5 tons, 10,000 lbs per year CFS-2300 total annual PM, 365 days x 24 hr/day x 0.50lb/hr = 438 lbs

9 Funeral Homes Direct Cremation (3 rd Party supplier to multiple funeral homes) Cemeteries Concrete Casket Vault Manufactures

10 Total number of cremation chambers 2121 Total cremations 900,687 Total Deaths 2,443,474 % of deceased Cremated 37% Average number of Cremations per chamber 425 per year. Copyright CANA 2009 Preliminary Data

11 1. California 108,286 47% 6. Michigan 39,664 45% 2. Florida 95,270 56% 7. Ohio 36,662 33% 3. Texas 49,711 30% 8. Washington 33,658 70% 4. New York 48,920 33% 9. Illinois 34,261 34% 5. Pennsylvania 42,387 34% 10. Arizona 29,844 66% Copyright CANA

12 Total number of cremation chambers 332 Total cremations 166,935 Total Deaths 244,107 % of deceased Cremated 68% Average number of Cremations per chamber 503* per year. *estimated. Copyright CANA

13 Funeral Homes Veterinary Clinics Humane Societies, Animal Shelters, Municipalities Pet Franchise Companies

14 PET OWNERSHIP According to the 2009/2010 National Pet Owners Survey, 62% of U.S. households own a pet, which equates to 71.4 millions homes Number of U.S. Households that Own a Pet (millions) Bird 6.0 Cat 38.2 Dog 45.6 Equine 3.9 Total Number of Pets Owned in the U.S. (millions) Bird 15.0 Cat 93.6 Dog 77.5 Equine 13.3 * Ownership statistics are gathered from APPA s 2009/2010 National Pet Owners Survey

15 Lower Fuel consumption, 15 Therms versus 30 Therms due to Combustion Control and Refractory Design Quick Change Hearth Tile System Fire Marshal Crematory Monitor, Fire Safety Internet Connectivity, remote trouble shooting Data Acquisition, Funeral Service Annual Report, State Air Quality Installation, Technical Service

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17 During original construction Installed Quick Change Tiles Sub Hearth Support Bricks, Arches Hearth area: 42 x Tiles Total, 4 Corners, 8 center

18 Fire Safety System Internet Connectivity, remote trouble shooting, Data Acquisition, Funeral Service Annual Report, State Air Quality

19 CFS-2300 Human Cremation Delivery and Installation Direct, 3 rd Party Crematorium, Vault Manufacturer Kelly Carroll, Gary, IN

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21 New Funeral Home, Finished Chamber Door Opening Dyer, Indiana

22 Human and Pet Cremation within same, new crematorium structure Shirley and Stout Funeral Home, Kokomo, Indiana

23 New Crematorium Addition, installation into tight construction sight, and small crematorium, Savanna, IL

24 ROI calculation Cremation Equipment and Installation, $100, Utility, Repair, Expense, 400 cremations x $22 = $8, Total Equipment, Install, Utility & Repair Expense $108, Revenue 400 cremations x $272 /cremation = $108, ROI is 12 months, based on cremation only, not considering other funeral service revenue generated by on sight crematorium

25 ROI calculation Cremation Equipment and Installation, $65, Utility, Repair, Expense, 400 cremations x $11 = $4, Total Equipment, Install, Utility & Repair Expense $69, Revenue 200 private cremations x $200 /cremation = $40, communal cremations x $147/cremation = $29, ROI is 12 months, based on cremation only, not considering other revenue such as Urns, Vaults, & Memorial Bronze,

26 Turnkey Chapel Crematorium Modular built, memorial chapel with crematorium attached

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28 Cremation Assoc. of North America Funeral Business Advisor, Internet Magazine Yellow Book Funeral Directory (Nomis) National Funeral Directors Association NFDA

29 ICCFA, International Cemetery Crematory Funeral Association NFDA, National Funeral Directors Association Nomis Yellow Book Directory Cremation Association of North America

30 National Shows NFDA National Funeral Directors Association, Cremation Assoc. of North America Regional Shows: Illinois Indiana Kentucky New Jersey Pennsylvania Massachusetts

31 Thom Tom Krowl South La Salle St. South Holland, IL cell