Durable Business Drives Cash Flow and Dividend Growth. November 14-15, 2017

Transcription

1 Durable Business Drives Cash Flow and Dividend Growth November 14-15, 2017

2 Safe Harbor Language and Reconciliation of Non-GAAP Measures This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws and is subject to the safe-harbor created by such Act. Forward-looking statements include, but are not, limited to, our financial performance outlook and statements concerning our operations, economic performance, financial condition, goals, beliefs, future growth strategies, investment objectives, plans and current expectations, such as 2017 guidance, 2020 outlook, expected shareholder returns and cash available for distribution. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors. When Iron Mountain uses words such as "believes," "expects," "anticipates," "estimates" or similar expressions, it is making forward-looking statements. Although Iron Mountain believes that its forward-looking statements are based on reasonable assumptions, Iron Mountain s expected results may not be achieved, and actual results may differ materially from its expectations. Iron Mountain s expected results may not be achieved, and actual results may differ materially from its expectations. In addition, important factors that could cause actual results to differ from Iron Mountain s expectations include, among others: (i) Iron Mountain s ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes; (ii) the adoption of alternative technologies and shifts by Iron Mountain s customers to storage of data through non-paper based technologies; (iii) changes in customer preferences and demand for Iron Mountain s storage and information management services; (iv) the cost to comply with current and future laws, regulations and customer demands relating to data security and privacy issues, as well as fire and safety standards; (v) the impact of litigation or disputes that may arise in connection with incidents in which we fail to protect Iron Mountain s customers' information; (vi) changes in the price for Iron Mountain s storage and information management services relative to the cost of providing such storage and information management services; (vii) changes in the political and economic environments in the countries in which Iron Mountain s international subsidiaries operate and changes in the global political climate; (viii) Iron Mountain s ability or inability to complete acquisitions on satisfactory terms and to close pending acquisitions and to integrate acquired companies efficiently; (ix) changes in the amount of Iron Mountain s capital expenditures and our ability to invest in accordance with plan ; (x) changes in the cost of Iron Mountain s debt; (xi) the impact of alternative, more attractive investments on dividends; (xii) the cost or potential liabilities associated with real estate necessary for Iron Mountain s business; (xiii) the performance of business partners upon whom Iron Mountain depends for technical assistance or management expertise outside the United States; (xiv) other trends in competitive or economic conditions affecting Iron Mountain s financial condition or results of operations not presently contemplated; and (xv) other risks described more fully in our filings with the Securities and Exchange Commission, including under the caption Risk Factors in our periodic reports or incorporated therein. In addition, the benefits of the Recall transaction, including potential cost synergies, accretion and other synergies (including tax synergies), may not be fully realized or may take longer to realize than expected. You should not rely upon forward-looking statements except as statements of Iron Mountain s present intentions and of its present expectations, which may or may not occur. Except as required by law, Iron Mountain undertakes no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 2 Reconciliation of Non-GAAP Measures: Throughout this presentation, Iron Mountain will discuss (1) Adjusted EBITDA, (2) Adjusted Earnings per Share ( Adjusted EPS ), (3) Funds from Operations ( FFO NAREIT ), (4) FFO (Normalized) and (5) Adjusted Funds from Operations ( AFFO ). These measures do not conform to accounting principles generally accepted in the United States ( GAAP ). These non-gaap measures are supplemental metrics designed to enhance our disclosure and to provide additional information that we believe to be important for investors to consider in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as operating income, income (loss) from continuing operations, net income (loss) or cash flows from operating activities from continuing operations (as determined in accordance with GAAP). The reconciliation of these measures to the appropriate GAAP measure, as required by Regulation G under the Securities Exchange Act of 1934, as amended, and the definitions of such Non-GAAP measures and certain operational measures are included in the Supplemental Financial Information. Iron Mountain does not provide a reconciliation of non-gaap measures that it discusses as part of its annual guidance or long term outlook because certain significant information required for such reconciliation is not available without unreasonable efforts or at all, including, most notably, the impact of exchange rates on Iron Mountain s transactions, loss or gain related to the disposition property, plant and equipment (including of real estate) and other income or expense. Without this information, Iron Mountain does not believe that a reconciliation would be meaningful. Note: All financial projections and forward looking statements included herein are current as of reporting the company s third quarter results on October 25, Selected metrics are defined in the appendix of our Q Supplemental Financial Information.

3 Introduction and Strategic Plan

4 Meet Iron Mountain 4 1 BILLION Medical images stored 680 MILLION Cubic feet of hardcopy records archived 627 MILLION Images scanned annually 89 MILLION Pieces of media stored 30 MILLION Film and sound elements protected and preserved 45,730 Disaster recovery tests supported % Inventory accuracy rate 1 TRUSTED GUARDIAN Of your most precious assets

5 Strong Diversified and Growing Business 5 ~$3.9 billion annual revenue (1) and growing 230,000+ customers Records & Information Management (1) Data Management (1) Shredding (1) 76% 14% 10% Storage: 69% Service: 31% Storage: 69% Service: 31% Service: 100% Serving 95% of Fortune 1000 including financial services, healthcare, energy, insurance and legal 24,000 employees worldwide (1) Based on Q results

6 Global Presence and Defensible Moat 6 Expansive global platform Compelling customer proposition Strong international expansion opportunity 87MM SF of real estate in 1,433 facilities Attractive real estate characteristics Low turnover costs Low maintenance capex High customer retention, low volatility Track record of enhancing shareholder value Share buyback, REIT conversion, dividend growth 28% TSR in 2016, 31.0% TSR YTD (1) Commitment to corporate responsibility FTSE4Good and Dow Jones Sustainability Index Solar and wind power reducing costs 53 COUNTRIES 6 CONTINENTS (1) As of November 6, 2017

7 Durable Business Supports Cash Flow and Dividend Growth 7 Protect Durable, Growing High-Margin Business Sustainable Growth in Cash Flow and Dividends per Share Extend Business Model to Fast-Growing Markets Sustainable Growth in Cash Flow and Dividends per Share Build on Customer Relationships and Trust to Leverage Brand

8 Durability and Performance Will Continue to Drive Shareholder Returns 8 Cumulative Ordinary Dividends and Special Distributions $in Billions $2.8 Targeted Growth in Ordinary Dividend/Share vs. Inflation $2.2 $1.7 $ % 4.0% 4.0% $ % 2.2% 2.1% E 2019E 2020E Growth in Div./Share CPI Index CPI Source: FactSet, as of October 20, 2017

9 50% of Boxes Stored 15 Years Ago Remain in our Facilities 9 IRM Retention Rate North America 100% 80% 60% 25% of boxes that were stored 22 years ago still remain 40% 20% 0% Box Age (Years) Source: Iron Mountain Propriety Safekeeper Plus Inventory Management System

10 We Continue to See Box Growth 10 ACHIEVING NET VOLUME GROWTH IN ALL MAJOR MARKETS Worldwide Internal Volume CuFt in MM Change Excludes Business Acquisitions MM+ NEW FROM EXISTING AND NEW CUSTOMERS ANNUALLY 8 MM+ INTERNAL NET VOLUME ANNUALLY (1) (1) 676MM CuFt including acquisitions

11 Storage Rental Stream is Key Economic Driver 11 Illustrative North America RM Storage Annual Economics (1) (per square foot, except for ROIC) Investment Customer acquisition $ 42 Building and outfitting 65 Racking structures 54 Total investment $ 161 Storage Rental NOI Storage rental revenue $ 30 Direct operating costs (4) Allocated field overhead (3) Stabilized Storage NOI $ 23 Storage Rental ROIC (2) ~14% (1) Reflects average portfolio pricing and assumes an owned facility. (2) Includes maintenance CapEx, assumed at 2% of revenue.

12 Addressing Information Governance Challenges Challenges We ve Heard 12 Transform your physical information to digital = Consistently index/classify both physical and digital information Securely access your information in a central repository IRON MOUNTAIN SOLUTIONS Automate papercentric processes Go Paperless INFORMATION ECONOMICS Strategic consulting for BPM, RIM/Imaging Strategy & Data Integrity Document Management and Workflow Solutions (HR, AP) Comprehensive Data Protection, Preservation, Restoration and Recovery Governance & Policy Solutions in Physical & Digital form

13 Internal Growth Reflects Durable Fundamentals 13 Strategic Plan Driving Strong Growth and Shift in Mix DEVELOPED MARKETS STRATEGIC PLAN EMERGING MARKETS (1) ADJACENT BUSINESSES REVENUE C$ CAGR 4% 30% 65% TOTAL INTERNAL REVENUE CAGR 0.2% 9% 22% STORAGE INTERNAL REVENUE CAGR 1% 10% 22% (1) Emerging Markets is Other International, excluding Australia and New Zealand Note: The definition of Internal Growth, a Non-GAAP measure, can be found on Page 42 in the Appendix of Q Supplemental Financial Information

14 Internal Revenue Growth Shows Momentum in Underlying Business 14 Internal Total Revenue Growth Rolling 3-Year Average 2.7% Storage Internal Growth Rolling 3-Year Average 2.4% 2.3% 2.4% 1.2% 0.8% 0.5% 0.2% Service Internal Growth Rolling 3-Year Average -2.5% -2.8% -1.5% -0.6%

15 Continued Cash Flow Growth 15 Expecting Steady Cash Flow Growth Beyond 2017 ~5% Revenue Growth 60/40 Internal Growth and M&A ~8% Adjusted EBITDA Growth (1) Leveraging leadership and scale ~9% AFFO Growth (1) Disciplined capital allocation 4%+ Dividend per Share Growth Consistent with business growth (1) Represents CAGRs for

16 Transformation and Integration Enabling Shareholder Return and Investment 16 Recall Net (1) Synergies and Transformation Benefits $in mm $50 $19 $20 $80 $80 $ E 2020E Net Synergies Transformation Reinvested (1) Net synergies is gross synergies net of estimated required regulatory dispositions Transformation and Integration on track to deliver ~$230MM in annualized savings Bringing SG&A in line with industry benchmarks Global platforms provide foundation for continuous improvement in future years Savings enable investment in ongoing innovation initiatives Delivering improvements in cash flow and sustainable dividend growth

17 Global Scale Leverages Revenue Growth to Drive Profitability 17 Worldwide Revenue C$ in MM (based on 2017 FX Rates) Adjusted EBITDA (1) C$ in MM (based on 2017 FX Rates) $1,265 $1,076 $2,756 $2,857 $2,913 $3,476 $3,795 $823 $859 $ E E Note: 2017E and growth rates based on midpoint of 2017 Guidance and reflects full year benefit from the Recall acquisition, closed May 2016 (1) Full reconciliation from Income from Continuing Operations available in Q Supplemental Financial Information on Page 16

18 Shift in Mix Underpins Long-term Dividend Growth Q Revenue Mix Revenue Mix 80% Developed Portfolio Includes North America And Western Europe 20% Growth Portfolio Emerging Markets = 18% Adjacent Businesses = 2% 75% Developed Portfolio Includes North America And Western Europe 25% Growth Portfolio Emerging Markets = 20% Adjacent Businesses = 5% Adjusted EBITDA Growth 2% 10% Adjusted EBITDA Growth 3% 10% ~3%+ Average Internal Adj. EBITDA Growth ROIC = 12% ~4%+ Average Internal Adj. EBITDA Growth ROIC = 13% Note: Emerging Markets is Other International, excluding Australia and New Zealand

19 Developed Markets and Data Management Opportunity 19

20 Durable Revenue and Profit Growth in Developed Markets 20 What? Continue strong execution and take advantage of scale Why? How? Drive volume, focus on revenue management and further expand margins Increase penetration of verticals, mid-market and Global Accounts while innovating to deliver new products and solutions Target 1. Strong Top-line Growth 3% Total Revenue CAGR 2. Enhanced Margins 100 bps Adj. EBITDA

21 Significant Opportunity for Growth from Un-vended Storage in North America BCG Estimates Un-vended Opportunity at ~720MM CuFt (1) Survey of >700 existing and potential respondents, as well as 70 in-depth interviews with large North America customers across six verticals, excluding government Wholly Un-Vended Vended In-House with Vended Customers Total ~1.9 B CuFt with only ~700 M CuFt Vended (1) Excludes government and SMB (<250 employees), except Legal which includes 100+ employees. BCG analysis is as of April Source: BCG document storage survey; Avention; BCG analysis These materials were designed for the sole use by Iron Mountain. No other party may or should rely on these materials for any purpose whatsoever. To the fullest extent permitted by law, any party accessing these materials hereby waives any rights and claims it may have at any time with regard to such party's use of and/or reliance on these materials, including the accuracy or completeness thereof.

22 Driving Service Gross Profit 22 Developed Markets Service Gross Profit (C$ in MM) $303 $283 $ % 10.6% 9.5% 17.8% Other Services 5.6% 25.8% 31.7% Shred 24.3% 5.4% 17.4% 9.3% 15.3% Information Governance & Digital Solutions DM Activity and Other Services 47.8% 40.9% 34.2% RM Activity and Other Services

23 Foundation Purpose Built Solutions Value Added Services Iron Cloud Launch Addresses Customer Data Management Challenges 23 Cloud Storage, Disaster Recovery and Data Archiving Solutions global market expected to grow 25% to 30% (1) Geographic redundancy Cloud Auto Tiering Compliance Compliant cloud framework Ransomware Preparedness E2E Disaster Recovery Orchestration/Automation Cloud Backup Data Analysis Compute, Storage, Virtualization Cloud Archive Data Classification Network Security Cloud Archive Surveillance Video Data Federations Cloud Data Replication Data Indexing Deep Storage (Tape Out) Migration Services (Data Shuttle) (1) Reflects CAGR for 2016 through 2021 estimate. Source: Markets & Markets Research Report

24 Emerging Markets: Delivering Strong Growth

25 Continued Strong Execution of Emerging Markets Strategy 25 What? Build market leadership and scale in our core businesses Why? How? To achieve superior returns over long term Through disciplined investing and execution in markets with attractive growth in information management outsourcing 1. Strong Organic Growth of Core Business 6%+ (1) Total Revenue CAGR 2. Enhanced Margin Accretion and Returns +300 bps Adj. EBITDA 3. Value Creating M&A 11%+ Total Revenue CAGR (1) Includes higher mix of more mature emerging markets following Recall acquisition Target

26 Progress in Achieving Leadership and Scale Building Scale Potential New Markets Low Scale Medium Scale High Scale Southeast Asia South Africa UAE Argentina Hong Kong Brazil Czech Rep Latin America Macau S. Korea Thailand China Mexico Romania 2017 Baltics India Malaysia Singapore Chile Developed Africa Russia Sweden Finland Serbia Middle East Slovakia Poland Hungary Denmark 26 Colombia Turkey Peru Norway Greece Australia 2013 Finland Sweden Baltics Malaysia S. Korea Colombia Ecuador Uruguay China Greece Norway Denmark Singapore Russia Hong Kong India Serbia Mexico Argentina Peru Brazil Australia Turkey Poland Czech Rep Romania Hungary Slovakia Chile Philippines Thailand

27 Compelling Data Center Opportunity

28 Global Footprint and Unparalleled Commercial Relationships 28 Deploying Capital into Higher Growth Businesses Current data center portfolio 69% leased (1) 15+ years of colocation experience ~60% of current customers are Data Management customers Opportunity to cross sell with secure data archive solutions Trust Recognized, Respected Brand Max Productivity 15+ Years Remote Support Experience Cost-Effective Low PUE, Minimal Waste, Reduced TCO ~30 MW of available capacity with 80 MW+ expansion potential (2) Highly secure and reliable Comprehensive compliance support Predictable Growth Long Term Capacity, Agility Mitigated Risk Uptime & Comprehensive Compliance Support Transparency DCIM, Asset Tracking, Metered Power (1) Reflects available portfolio of 24MW as of 09/30/2017 (2) Includes Credit Suisse transaction, which is expected to close in Q1 2018

29 Data Center Investment Supports Business Diversification 29 Driven by organic and external growth Leverage REIT structure Total expected investment of $350 million to build out and stabilize existing portfolio (1) Projected 10% stabilized cash-on-cash returns Conservative stabilization assumptions Ability to address both co-location and hyper scale requirements Minimum 5% of total Revenue by 2020 Invest in Greenfield Development Multi-pronged Approach to Scaling Data Center Platform Focus on Top US and Global Markets Execute on Accretive Acquisitions Focused on markets with high absorption Targeting top 10 U.S. and top 10 global markets Presence in 5 U.S. and 2 international markets (1) Acquisition of pre-stabilized properties with expansion capacity Tenant sale-lease-back deals provide day 1 income and lower expansion costs Value-add redevelopment opportunities Double digit stabilized projected cash-on-cash returns (1) Existing portfolio includes legacy data center business, Northern Virginia phase 1, FORTRUST and Credit Suisse Acquisition (2) International presence expected following the close of the Credit Suisse transaction, which is expected to close in Q1 2018

30 Data Center Portfolio and Expected Returns IRM Data Center Capacity in MW 30 Existing Data Center Capacity Under Construction (12-18 months) Planned Expansion (1) Future Expansion (2) Total Potential Capacity Legacy Portfolio (3) Greenfield Development (4) Acquisition Properties (5) Total Annualized P&L Contribution $ in mm IRM Data Center Expectations Stabilized Existing Data Center Capacity Including Under Construction and Planned Expansion (Pre-Stabilized) Revenue $95 to $100 $130 to $140 Adjusted EBITDA $25 to $30 $65 to $75 Investment Capital (through 2020) $325 - $350 (1) Planned expansion indicates shell/infrastructure in place (2) Future expansion indicates ground breaking/new construction required (3) Legacy portfolio includes Boston, Boyers, PA and Kansas City (4) Greenfield development includes Northern Virginia Campus (5) Includes FORTRUST and Credit Suisse, which is expected to close in Q1 2018

31 New Northern Virginia Site Offers Upside to Plan acre site purchased in Manassas, VA Total campus can support more than 900,000 SF of purposebuilt data center space with 60 MW of IT capacity Phase I Live September ,000 square foot shell 10.5 MW of IT capacity Initial data hall of 3 MW more than 50% pre-leased Development costs in line with industry and market $700 - $800 per rentable square foot $10M - $11M per MW Conservative lease-up assumptions Expect to meet 3 MW of demand annually Reflects new entrant status in a well-established market Rental rates consistent with major providers; $135 - $145/kW/month; pricing has been stable for last 2-3 years Projected double digit stabilized cash-on-cash returns

32 FORTRUST Acquisition Supports Growth and Solid Returns 32 Acquired Denver-based data center business for ~$130 million New capacity significantly expands existing business Top 10 US market; 30%+ local share, 250 customers and 15-year operating history Tier 3 Gold owned facility with 9.1 MW existing capacity, 75% leased 7.1 MW of expansion potential allows for future growth and return enhancement Purchase price multiple of approximately 13.0x synergized EBITDA, post integration Acquisition funded with ~$75mm private placement stock and $55mm cash Transaction expected to be $(0.01) - $(0.02) dilutive to EPS in 2017 due to integration costs and AFFO neutral in 2017 No expected impact to EPS in 2018, modestly accretive in 2019

33 Strategic Sale-leaseback Data Center Transaction 33 Announced acquisition of two Credit Suisse data centers in Singapore and UK (1) Metropolitan Area Total Leased Planned Expansion (2) London Singapore Total Expanding geographic footprint in leading non-us data center markets Access to power and fiber to support additional capacity development Enable reach to a larger pool of enterprise customers Strong anchor customer with 10-year lease Sale-leaseback: enable corporate data center users to refine IT infrastructure and increase efficiencies Double digit cash on cash returns, following build-out and lease-up of expansion capacity With integration and deal-related operating costs, expect modest EPS dilution in 2018 Expected to be neutral to EPS in 2019 and accretive in 2020, or Year 3 following integration (1) Acquisition is expected to close in Q (2) Planned expansion indicates shell/infrastructure in place

34 Disciplined Capital Allocation and Longterm Outlook

35 Discretionary Investments Yield Compelling Returns 35 Developed And Emerging Markets Business Acquisitions Core Racking, Data Center Development and Real Estate Consolidation Adjacent Businesses Investment $450 to $600 million Projected 11-15% IRR 1-3 Years to Stabilize Investment (1) ~$500 million Projected % IRR 3-5 Years to Stabilize Investment $50 to $100 million Projected 10-14% IRR Project Specific Stabilization (1) Excludes Data Center acquisitions

36 M&A in Emerging and Developed Markets Deliver Solid Growth and Returns 36 Emerging Markets Acquisition Spend/Yr. $100 MM to $150 MM Topline Growth 5% to 10% Storage Rental Projected IRR 13% 14% Strong returns; increases exposure to higher growth markets Developed Markets Acquisition Spend/Yr. $50 MM Topline Growth Consistent Storage Rental Projected IRR 11% 13% Tuck-in deals have predictable returns and quickly synergize Data reflects assumptions for

37 Investing in Faster Growing and Value Creating Businesses 37 ADJACENT BUSINESSES 2020 Target = 5% of total Revenue Data Center continued organic growth offering good returns and evaluating M&A opportunities Art storage growth through organic and acquisitions INNOVATION Leveraging brand, capabilities and relationships to help customers solve problems Iron Cloud, library moves, valet selfstorage, entertainment services offerings and policy center

38 Sizable Real Estate Portfolio 38 87M total square feet as of September 30, 2017 Owned: 28MM SF/307 buildings Average size: 91,000 SF 32% of real estate by SF owned Storage Leased: 59MM SF/1,126 buildings Average size: 52,000 SF 54% of portfolio expires after 2027, assuming extension of options

39 Real Estate Value Creation Opportunities 39 Racking Lease Consolidation Optimizing Portfolio Development and Expansion Higher better use Scope: Growth racking Return Range: 25 % + Example: Grove Rd, Spokane, WA Scope: 5 10 markets in NA Return Range: % Example: Philadelphia, PA; Phoenix, AZ Scope: Optimizing portfolio through capital recycling Selling in non-strategic locations (low cap rates), using proceeds to acquire properties in strategic locations and/or with growth/expansion potential Scope: Control land, development JVs Return Range: low teens IRR, competitive BTS rents Example: Manassas, VA (Data Center); Seattle, WA (Shred) Scope: Maximizing value of existing asset base through sale or conversion (~ 10 potential conversion assets) Return Range: % + Example: Sale of infill property for redevelopment - Deanston Wharf, London UK Note: Return Ranges represent targeted IRRs with stabilization period for racking, lease consolidation and development ranging 2 to 5 years.

40 Real Estate Quality Underpins Balance Sheet 40 Owned Real Estate Concentrated in Major Markets Seattle San Francisco Los Angeles San Diego Metro Phoenix-Mesa- Scottsdale Source: Company filings, based on 12/31/2016. $1.7bn (1) United States Owned Real Estate Denver- Boulder Chicag o Dallas-Fort Worth- Arlington NY0086JT / _1.wor Leased SF 61% Owned SF 39% Boston New York Philadelphia Washington D.C. <$5mm $5 to $20mm >$20mm Major MSA Top Owned International Markets by Gross Book Value Gross Book Value Total % Country ($MM) Int. Gross BV 1. Canada % 2. United Kingdom % 3. Brazil 67 9% 4. France 65 9% 5. Chile 59 8% 6. Mexico 48 7% 7. Scotland 46 6% 8. Peru 43 6% 9. Ireland 35 5% 10. Spain 26 4% Total $628 87% Source: Company Filings, based on 12/31/16 $0.7bn (1) International Owned Real Estate Leased SF 78% Owned SF 22% (1) Gross book value including leasehold improvements and racking

41 Capital Allocation Framework Designed to Maximize Returns 41 Lease Adjusted Net Debt to EBITDAR Optimal Range (1) Sources of capital: 5.0X 4.5X 6.0X 5.5X 4.0X 5.0X 4.5X Dividend as % of AFFO Optimal Range 75% 70% 85% 80% 78% 73% 65% 70% Growth in operating cash flow Secured and unsecured borrowings Real estate capital recycling Co-investment JVs ATM program or other equity Data center acquisitions neutral or incrementally positive to 2020 targets Grow dividend per share at 4%+ ROIC hurdle rate above WACC FY 2017 Guidance 2020 Target (1) Most restrictive covenant with lease adjusted net debt/ebitdar of 6.5X

42 Recent Refinancing Activity 42 Action Amount USD Pre Rate Post Interest Savings p.a. Tenor / Extension Amended and extended senior credit facility $2B 2.25% 2.0% $2mm - $4mm Called CAD $200mm bond using revolver capacity ~$165mm 6.125% 3.25% $3.3mm Issued USD bond and called an outstanding USD Notes $1B 6% 4.875% $11.3mm Refinanced AR Securitization $250mm.9% 1% ($250K) Issued 400mm GBP bond and called an outstanding GBP Notes ~$530mm 6.125% 3.875% $11.9mm 5 years / +3.1 years 5 years / +1 year 10 years / +7 years 3 years / +2.3 years 8 years / +3 years Portfolio Weighted Average (excl. credit facility) 5.4% 4.8% ~$30mm +2.0 years Leverage ratio 5.5x with most restrictive covenant at 6.5x 71% fixed rate debt and 29% floating

43 2020 Plan: Profitable, Sustainable Growth 43 Worldwide Revenue (C$ in MM) AFFO Growth (1) (C$ in MM) $3,795 $4,350 $4,500 $ E - Midpoint of Guidance $910 - $ E 2017E - Midpoint of Guidance 2020E Projected Minimum Dividend per Share (2) Adjusted EBITDA (C$ in MM) $2.24 $2.35 $ Lease Adjusted Leverage Ratio $1, E - Midpoint of Guidance $1,535 $1, E (1) Assumes Maintenance CapEx of 4.1% and 3.8% of Total Revenue for 2017 and 2020, respectively (2) Assumes 266 million shares outstanding for 2017 increasing ratably to 269 million shares outstanding in x 2017E 5.0x 2020E

44 Enterprise Storage Compares Favorably 44 Iron Mountain Actual Self-Storage Industrial North America annual rental revenue/sf (1) $29.7 $13.8 $5.5 Tenant Improvements/SF 0 0 $1.96 Maintenance CapEx (2) 3% 5% 12% Average lease term Large customers: 3 Yrs. Small customers: 1 Yr. Average Box Age : 15 Yrs. Month-to-Month ~4-6 yrs. Customer retention 98% ~85% ~75% Customer type Business Consumer Business Storage Net Operating Margin (3) Storage: 82% 68% 70% Largest Public REITs NOI Annualized ($ in MM) (4) IRM Storage: $1,996 PSA: $1,892 PLD: $1,880 Source: Self-Storage and Industrial benchmark data provided by Green Street Advisors and J.P. Morgan. (1) Annualized rental revenue / SF is based on 3Q17 results. (2) IRM CapEx represents real estate maintenance CapEx as a percentage of storage revenue based on FY 2016 results. CapEx for Self-Storage and Industrial comps represent recurring CapEx as a percentage of storage revenue. Excludes leasing commissions. (3) Excludes rent expense for Iron Mountain. (4) Represents annualized 3Q17 storage net operating income for IRM, 3Q17 self-storage net operating income for Public Storage (PSA), and 3Q-17 net operating income for Prologis (PLD) source from those companies supplemental disclosures.

45 IRM Compares Favorably to Broader REIT Universe 45 DIVIDEND YIELD 2017E AFFO PAYOUT 2017E AFFO GROWTH P/AFFO YTD TOTAL RETURN Iron Mountain (1) 5.8% 79% 11.5% 14.7X 31.0% Overall U.S. Equity REITs (2) 4.1% 78% 5.7% 21.6X 3.7% (1) Based on IRM stock price of $40.64 (11//6/2017) and midpoint of 2017 Guidance (2) Based on 11/6/17 JPMorgan s REIT Weekly U.S. Real Estate Stock Tools database which includes 129 REITs

46 Key Takeaways 46 Durable records management growth: internal and acquisitions High return investments enhance shareholder returns Strong cash flow generation with increasing margins Adjacent Businesses provide upside potential Strategic plan drives sustainable dividend growth and future investments Attractive valuation with superior business fundamentals

47 Appendix: Q Results

48 Q3-17 on Track with Financial Objectives 48 Q3 performance supported by storage rental durability, Recall synergies and Transformation 8% C$ Adjusted EBITDA growth and 19% AFFO growth 230 basis point YoY improvement in Adjusted EBITDA margins Leverage ratio improved to 5.5x, following amendment and extension of senior credit facility Q4 dividend increase reflects expectation of continued strength of fundamentals Continued strength in operating metrics Strong internal storage rental growth of 3.5% in Q3 Continued worldwide internal volume growth of 1.3% on TTM basis and improved pricing Net volume gain of 8.2 mm CuFt in TTM, reflects strong organic adds of 48.6 mm and 40.4 mm of outgoing CuFt Maintaining 2017 Guidance Business fundamentals remain consistent; C$ and R$ expectations within same range No change to Adjusted EBITDA range despite timing of M&A with related integration costs, disposition of Russia/Ukraine businesses and costs related to natural disasters Note: Definition of Non-GAAP and other measures and reconciliations of Non-GAAP to GAAP measures can be found in the Q Supplemental Financial Information

49 Continued Execution of Strategic Plan 49 Developed Markets North America and Western Europe Achieved 3.2% internal storage rental growth in Q3 1 million CuFt of net volume (1) before business acquisitions/recall dispositions Enhanced revenue management efforts yielding higher margin Emerging Markets (2) Achieved 6.6% internal storage rental growth in Q3 ~18% of total revenue (2) in Q3; expanded presence through organic growth and acquisitions Completed deals in Cyprus and South Africa in Q3 Adjacent Businesses Data center transactions expand existing platform Expanding entertainment services and art storage through Bonded acquisition (1) Net volume on a trailing twelve months basis represents incoming cubic volume of 31.5mm from new and existing customers less outgoing cubic volume of 30.5mm from destructions and customer terminations (2) Emerging Markets is Other International, excluding Australia and New Zealand. Percentage of total revenue is based on 2014C$ foreign currency rates at time goal was established

50 Solid Progress in Adjacent Businesses 50 Data Center (1) Northern Virginia expansion on-time and on budget - completed building 1, first data hall of 3 MW 50% leased Closed acquisition of FORTRUST in Denver, 75% of existing capacity leased Announced acquisition of two Credit Suisse data centers in Singapore and UK, 4.2 MW leased with expansion opportunity of 10 MW (2) Bonded Entertainment Services and Art Storage Provides storage, logistics and distribution, and digital services to roughly 2,000 customers Transaction more than doubles existing Entertainment Services business and expands presence in Europe Purchase price of 57MM ($74MM); low-teens IRR (1) Data Center capacity chart is in the appendix on Page 54 (2) Acquisition is expected to close in Q1 2018

51 Worldwide Consistent Inbound/Outbound Volume 51 CuFt in mm Net Volume before Acquisitions/Dispositions (1) (34.9) (35.6) (36.3) (37.9) (39.2) (40.3) (40.7) (40.4) Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 (2) Q3 17 (1) Net volume is defined in the appendix of the Q Supplemental Financial Information on Page 42 (2) Q cube growth has been adjusted to reflect required regulatory divestments in IRM s legacy Australian business

52 Steady Internal Growth in Q3 52 Internal Growth Developed Markets (1) Other International (2) Corporate & Other Total Storage 3.2% 5.0% 1.5% 3.5% Service (0.1)% (0.1)% (16.0)% (0.2)% Total 1.9% 3.0% (3.1)% 2.0% % of Revenue by Segment Storage 47.8% 13.0% 1.4% 62.2% Service 29.8% 7.6% 0.4% 37.8% (1) Represents North America Records and Information Management, North America Data Management and Western Europe reporting segments (2) Other International includes emerging markets, Australia and New Zealand Quarterly segment operating performance can be found on Page 10 of the Q Supplemental Financial Information

53 Increasing Cash Available for Dividends and Discretionary Investments 53 $ in mm 2017E Guidance Adjusted EBITDA $ 1,250 1,280 Non-cash stock compensation / other (including non-cash permanent withdrawal fees) Adjusted EBITDA plus non-cash expenses $ 1,300 1,330 Less: Cash interest and normalized cash taxes Total maintenance CapEx and non-real estate investment Customer inducements and acquisition of customer relationships (1) Cash available for dividends and investments $ Expected common dividend (based on record date) Cash available for core and discretionary investments $ Less discretionary investments: Acquisitions FORTRUST cash consideration Growth real estate, data center and innovation capital (2) Incremental capital needed to fund discretionary investments $ (290) (260) (1) Customer inducements and acquisitions of customer relationships are not deducted from AFFO as they represent discretionary growth investment (2) Includes core growth racking and excludes Northern Virginia Data Center development under capital lease Note: Iron Mountain does not provide a reconciliation of non-gaap measures that it discusses as part of its annual guidance or long term outlook because certain significant information required for such reconciliation is not available without unreasonable efforts or at all, including, most notably, the impact of exchange rates on Iron Mountain s transactions, loss or gain related to the disposition of real estate and other income or expense. Without this information, Iron Mountain does not believe that a reconciliation would be meaningful.