Durable Business Drives Cash Flow and Supports Dividend Growth. September 9, 2016

Transcription

1 Durable Business Drives Cash Flow and Supports Dividend Growth September 9, 2016

2 Safe Harbor Language and Reconciliation of Non-GAAP Measures Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this communication may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws and be subject to the safe-harbor created by such Act. Forward-looking statements include, but are not limited 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 2016 guidance, 2020 outlook, expected shareholder returns and cash available for distribution, the expected total cost to integrate Recall Holdings Limited ( Recall ) with our company and expected synergies from the acquisition, strategic goals, and expected cost savings associated with the Transformation Initiative. 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. You should not rely upon forward-looking statements except as statements of Iron Mountain s present intentions and of Iron Mountain s present expectations, which may or may not occur. The forward-looking statements are based on Iron Mountain s estimates based on information available to it as of the date indicated in connection with such statement (and if no such date is indicated, the date of this Investor Presentation). Iron Mountain s expected results may not be achieved, and actual results may differ materially from its expectations. 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 U.S. 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 privacy issues; (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; (viii) Iron Mountain s ability or inability to complete acquisitions on satisfactory terms and to integrate acquired companies efficiently; (ix) changes in the amount of Iron Mountain s capital expenditures; (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 we depend for technical assistance or management expertise outside the United States; and (xiv) other trends in competitive or economic conditions affecting Iron Mountain s financial condition or results of operations not presently contemplated. In addition, the benefits of the l 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. Additional risks that may affect results are set forth in Iron Mountain s filings with the Securities and Exchange Commission, including under the caption Risk Factors in our periodic reports, or incorporated therein. Any forward-looking statements contained herein are based on assumptions that Iron Mountain believes to be reasonable as of the date indicated in connection with such statement (and if no such date is indicated, the date of this Investor Presentation) and Iron Mountain undertakes no obligation, except as required by law, to update these statements as a result of new information or future events. 2 Non-GAAP and Measures: Throughout this presentation, Iron Mountain will discuss (1) Adjusted OIBDA, (2) Adjusted Earnings per Share, (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 or net income (loss) or cash flows from operating activities from continuing operations (as determined in accordance with GAAP). For additional information please see the appendix of this presentation, and for additional definitions and a reconciliation of these measures to the appropriate GAAP measure, as required by Regulation G under the Securities Exchange Act of 1934, as amended, please see the Iron Mountain s supplemental reporting package under Investor Relations\Financial Information\Quarterly Reporting at 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.

3 Table of Contents 3 Topic Pages Iron Mountain Overview 4 8 Business Durability 9 13 Strategic Plan Performance and 2020 Vision Capital Allocation and Real Estate Strategy Recall Acquisition and Transformation Guidance and Summary Appendix 46 55

4 Iron Mountain Overview

5 We Store & Manage Information Assets 5 Diversified Global Business (1) More than $3.7 billion annual revenue (1) 220,000+ customers Serving 94% of Fortune 1000 Records & Information Management (2) Data Management (2) Shredding (2) Storage: 70% Service: 30% 75% 16% 9% Storage: 60% Service: 40% (1) Annualized revenues reflect midpoint of normalized for FY 2016 guidance (2) Based on a partial year contribution from Recall through year-to-date 2016 Service: 100% More than 85 million square feet of real estate in more than 1,400 facilities Compelling Customer Value Proposition Reduce costs and risks of storing and protecting information assets Broadest footprint and range of services Most trusted brand

6 Leading Global Presence 6 Most expansive global platform Compelling customer proposition Strong international expansion opportunity Attractive real estate characteristics Low turnover costs Low maintenance capex High retention, low volatility Solid track record of enhancing shareholder value Share buybacks, REIT conversion, dividend enhancement Formal corporate responsibility program FTSE4Good and Dow Jones Sustainability Index constituent 45 COUNTRIES 6 CONTINENTS

7 Storage Rental Stream is Key Economic Driver 7 Illustrative North America RM Storage Annual Economics (1) (per square foot, except for ROIC) Investment Customer acquisition $ 42 Building and outfitting 54 Racking structures 54 Total investment $ 150 Storage Rental NOI Storage rental revenue $ 27 Direct operating costs (3) Allocated field overhead (3) Stabilized Storage NOI $ 21 Storage Rental ROIC (2) ~14% 8% 6% 4% 2% 0% -2% -4% Historical Same-store Revenue Growth Coming off higher inflation and pricing catch up Year Average IRM Internal Storage Revenue Growth (1) 3.8% Self-Storage Average Same Store Revenue (2) 3.8% Industrial Average Same Store Revenue (3) 1.0% Source: Company filings. (1) Represents the weighted average year-over-year growth rate of the Company s revenues after removing the effects of acquisitions, divestitures and foreign currency exchange rate fluctuations. Local currency used for international operations. (2) Represents the annual same-store revenue growth average for Public Storage (PSA), Extra Space Storage (EXR), CubeSmart (CUBE) and Sovran (SSS) (3) Represents the annual same-store revenue growth average for DCT Industrial (DCT), Duke Realty (DRE), First Industrial (FR), Liberty Property (LPT), Prologis (PLD) and PS Business Parks (PSB). (1) Reflects average portfolio pricing and assumes an owned facility. (2) Includes maintenance CapEx, assumed at 2% of revenue.

8 Enterprise Storage Compares Favorably Iron Mountain Self-Storage Industrial ($ in M) Actual North America annual rental revenue/sf (1) $26.7 $13.8 $5.5 Tenant Improvements/SF N/A N/A $1.96 Maintenance CapEx (2) 2% 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 concentration Very low Very Low Low Customer type Business Consumer Business Stabilized Occupancy (building & racking utilization) (3) Building: 85% Racking: 91% 90% 93% Storage Net Operating Margin (4) Storage: 81% 68% 70% Largest Public REITs 2Q 16 NOI Annualized (5) IRM Storage: $1,874 PSA: $1,703 PLD: $1,756 Source: Company estimates and filings. Benchmark data provided by Green Street Advisors and J.P. Morgan. (1) Annualized rental revenue / SF is based on 2Q16 results, reflecting only two months of Recall revenues and total square footage acquired (2) IRM CapEx represents real estate maintenance CapEx as a percentage of storage NOI. Comps represent recurring CapEx as a percentage of NOI. Excludes leasing commissions. Based on 2Q16 results (3) Building utilization represents total potential building capacity and racking utilization represents installed racking capacity for the Records Management business (4) Excludes rent expense. (5) Represents annualized 2Q16 storage net operating income for IRM including a FY benefit from Recall, self-storage net operating income for PSA, and net operating income for PLD source from those companies supplemental disclosures 8

9 Business Durability

10 Global Document Storage Continues to Demonstrate Strong, Steady Growth 10 Year-over-Year Global Net Volume Growth Rates (Records Management Only) 2.1% 2.1% 2.0% 1.8% 1.6% 1.6% 1.6% 1.7% 5.5% 3.6% 3.6% 2.8% 2.7% 2.3% 3.2% 27.6% Internal Growth Net Growth 3.4% 25.9% 2.4% 1.5% 1.6% 1.0% 1.1% 0.7% 1.6% 2.4% 2.4% 2.3% 2.4% 2.5% 2.6% 2.6% 6.1% 5.9% 5.9% 5.9% 5.7% 5.8% 5.8% 6.0% -4.5% -4.4% -4.4% -4.3% -4.5% -4.6% -4.8% -4.8% -1.9% -1.9% -2.0% -2.1% -2.1% -2.1% -2.0% -2.1% Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 (1) New Volume from Existing Customers New Sales Acquisitions Destructions Outperm/Terms (1) Acquisitions of customer relationships are included in new sales as the nature of these transactions is similar to new customer wins.

11 Observed Trends Historical Performance North America box inventory has continued to grow YE 2011 Balance New from Existing Iron Mountain NA Cube Growth (CuFt in M) New from Outperms & + Destructions New - PW - = Organic Growth New From Existing New From New (1) Outperms & PWs Destructions Continuing to receive strong volume, albeit at a declining pace Successfully adding new customers and inventory at an increasing rate At historic lows, having declined from 2.4% to 1.8% of total inventory + Acquisitions = Total Growth Virtually unchanged, holding at 4.7% of total inventory Acquisitions Accretive acquisitions generate stabilized returns of 11% - 14% YE 2015 Balance 11 (1) Acquisitions of customer relationships are included in new sales as the nature of these transactions is similar to new customer wins

12 BCG Study Estimates NA Vended Document Storage at ~700M CuFt Excluding Government and SMB Segmentation of NA box storage volume (1) 12 Share of Cuft (%) M (20%) 190M (11%) 175M (11%) 90M 60M (4%) (2%) 1,000M (53%) Cubic Feet Share of Cuft (%) 80 21% 38% 34% 41% 42% 44% Wholly Unvended ~720M % 45% 23% 38% 11% 55% 22% 29% 36% 31% 25% 31% In-house at Vended Customers Vended ~480M ~700M Financial services Health care Energy Legal Life Sciences 60 Other Total ~1.9 B cu ft Vended ~700 M cu ft (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.

13 Predictable and Steady Box Retention Rate % 80% 60% 40% IRM Retention Rate North America As of March 31, % of boxes that were stored 15 years ago still remain 25% of boxes that were stored 22 years ago still remain 20% 0% Box Age Retention rate

14 Strategic Plan Performance and 2020 Vision

15 Strategic Plan Delivering Expected Results 15 OUR PLAN FOR GROWTH DEVELOPED MARKETS 9M cu. ft. Net RM Volume prior to Acquisitions (1) EMERGING MARKETS Emerging Markets = 16.4% of Total Revenues on a C$ basis (2) ADJACENT BUSINESSES New Data Center Customers and Expanded into Art Storage GROWTH and VALUE PILLARS TRANSFORMATION, INTEGRATION AND TALENT Drive process improvements, simplification, efficiencies, and develop and enable talent to support business strategy Leverage Real Estate Platform to Create Long-Term Value Consolidate properties for maximum efficiency, leverage development and lease conversion opportunities ENABLERS (1) Reflects net volume growth (prior to acquisitions of Records Management businesses) in North America Records Management and Western Europe from Jan 2014 through June 2016 (2) Data as of Q and on a 2014 C$ basis

16 Strategic Plan Drove Improved Performance Since Year-end DEVELOPED MARKETS STRATEGIC PLAN EMERGING MARKETS ADJACENT BUSINESSES Revenue C$ CAGR 1% 33% 20% Worldwide Revenue (C$ in M) Adjusted OIBDA (C$ in M) Regular Dividend per Share $2,894 $3,011 $3, $861 $898 $ Based on 2015 C$ Rates Note: We use Non-GAAP metrics and financial measures in comparing our operating performance and highlights to our strategic goals because the non-gaap metrics and financial measures are used in our strategic goals, rather than GAAP financial measures. We believe it is important to our investors for us to report progress against these strategic goals, and management compensation is aligned with these strategic goals, as noted in our annual meeting of stockholders proxy $1.08 $

17 Significant Improvement in Internal Revenue Growth Since 2012 Internal Storage Rental and Service Growth Internal Revenue Growth (1) Total Internal Growth % 2.1% 2.2% 2.7% 1.0% 1.5% 2.0% -0.7% -0.4% -0.4% -0.3% -4.4% -3.4% Guidance Midpoint Storage Internal Growth Service Internal Growth (1) Internal Revenue Growth Our internal revenue growth rate, which is a non-gaap measure, represents the weighted average year-over-year growth rate of our revenues excluding the impacts of business acquisitions, divestitures and foreign currency exchange rate fluctuations. Our internal revenue growth rate includes the impact of acquisitions of customer relationships

18 2020 Vision Changes Mix and Enhances Growth 18 Q % Developed Portfolio 18% Growth Portfolio Emerging Markets = 16% Adjacent Businesses = 2% 2% Adj. OIBDA 10% Adj. OIBDA 75% Developed Portfolio 25% Growth Portfolio Emerging Markets = 20% Adjacent Businesses = 5% 3% Adj. OIBDA 10% Adj. OIBDA ~3% Average Internal Adj. OIBDA Growth ROIC = 12% ~5% Average Internal Adj. OIBDA Growth ROIC = 14%

19 Summary of Financial Roadmap Growing Storage Revenues And Margins Stabilized Service Gross Margin and Grow Gross Profits Improved SG&A Efficiency Disciplined Capital Spend on Maintenance, Non-Real Estate Investment and Racking Consistent Contribution and Cash Flow Improvement Accretive Acquisitions, Real Estate and Adjacent Businesses Dividend Growth Per Share

20 Growing Storage Revenues and Gross Profits Total Internal Storage Rental Growth 20 Storage 61% (1) of Total Revenue 3.1% 3.0% 2.1% 2.2% 2.7% Maintain annual growth of 2.5% to 3% through Storage Gross Margin (2) Storage 83% (1) of Total Gross Profit 72.8% 73.6% 75.3% 76.6% 76.6% Modest annual growth through (1) Data as of YTD 2016 and based on reported dollar results (2) Includes rent expense and doesn t include termination and permanent withdrawal fees Storage Gross Margin impacted by accounting adjustments in Q2 2015

21 Stabilized Service Revenue with Focus on Enhancing Gross Profits Total Internal Service Revenue Growth 21 Service 39% (1) of Total Revenue 0.4% (0.7%) (0.4%) (3.4%) (4.4%) Expect internal service revenue to be net positive for 2016; mix shift to drive higher gross profit Total Service Gross Profit Service 17% (1) of Total Gross Profit 40.9% Primary Drivers of Decline Costs not reduced in line with activity Mix shift to lower margin revenue Lower paper price Stabilization Drivers Labor management Transport efficiencies Use of technology 27.7% 27.2% (2) 2011 Service Gross Margin (1) Data as of YTD 2016 and based on reported dollar results (2) 2015 service gross margin represents Q Service Gross Margin 2015 Service Gross Margin

22 Offsetting Core Service Declines with Continued Shift in Revenue Mix 22 Total Company Service Revenue (All years reflect 2016 C$ in M) $1,128 $1,147 $1,134 17% 17% 19% 20% 6% 7% 6% 7% 8% 8% 16% 15% 13% $1,360 - $1,400 6% 15% 15% 14% 17% 11% 12% 38% 39% 38% 35% Area / CAGR Other Services +4% Shred Paper -2% Shred Non-Paper +4% Info. Gov. & Digital Solutions +17% DM Activity-Based -10% RM Activity-Based -3% Shifting revenue mix to projectbased and other complementary services Generate growth in service gross profit, margins may be lumpy New offerings have lower average gross margin than activity-based services However, less capital intensive, therefore have similar returns E Note: Examples of activity based service include retrieval refile; other services include library moves and Secure IT Asset Disposition

23 Collaborating with Technology Providers to Enhance Data Management Offerings 23 Highlights New offerings in data management drive both storage and service revenue Diversification of service revenues to offset decline in activity based services Early days, however, gaining traction among customers in North America Restoration Assurance Program allows customers to archive data securely offsite and restore it on-demand when you needed, through an auditable, repeatable and defensible process Cloud Seeding and Migration a cost-effective and efficient method to move large data sets to the cloud, while providing security and chain-of-custody throughout the entire process Secure e-waste and IT Asset Disposition a structured, secure, costeffective program to manage outdated IT assets that provides business value, while being compliant and green Cloud Archive Solution highly secure and cost-effective off site storage, available on demand and accessible by dedicated, secure network bandwidth. Scalable and resilient storage infrastructure offers full spectrum of backup, replication, archive and disaster recovery solutions to protect, preserve, and manage data for compliance, legal or value-creation purposes

24 Improved SG&A Efficiencies Transformation Estimated Cumulative SG&A Savings ($ in M) Estimated SG&A (1) as % of Revenue 24 $50 $100 $ % 28.0% 26.0% IRM Trend Transformation Improvement driven by offshoring, outsourcing, automation, procurement effectiveness, and reducing complexity Target levels of SG&A consistent with median level benchmarks for companies of similar scale Actions taken in July 2015 generating run-rate savings of $50M for 2016 Year-to-date, through July 30, executed on over $28M of $50M of run-rate savings in % 22.0% 20.0% E 2017E 2018E 2019E 2020E (1) Excludes REIT Costs and Recall Costs

25 Capital Allocation and Real Estate Strategy

26 Attractive Discretionary Investment Opportunities 26 DISCRETIONARY INVESTMENTS DEVELOPED AND EMERGING MARKETS BUSINESS ACQUISITIONS ADJACENT BUSINESSES REAL ESTATE Strong Stabilized Returns

27 M&A Delivers Solid Growth and Returns 27 Emerging Markets Acquisition Economics* Acquisition Spend/Yr. $100M Ongoing Topline Growth 10% + Storage Rental Expected Returns 13% 14% Strong returns, supports progress to increase exposure to higher growth markets Developed Markets Acquisition Economics* Acquisition Spend/Yr. $50M Ongoing Topline Growth 2-3% + Storage Rental Expected Returns 11% 13% Tuck-in deals offer predictable return and quickly synergize * Reflects assumptions for

28 Adjacent Businesses Offer Potential Further Upside 2020 Target = 5% of total Revenue 10% long-term organic growth Data center continued organic growth offering good returns Art storage through Crozier acquisition 28 Art Storage Economics Capital Invested $78M in 2015 Expected Returns 13% Stabilization 18 months Data Center Economics (1) Capital Invested Per Year $35M/Yr. Expected Returns 12-15% Stabilization 2-3 years (1) Data reflects assumptions for Data center economics represent invested capital in existing facilities and business and exclude large specific development projects and acquisitions

29 Formalizing Art Business with Acquisition of Premier Brand 29 Fine Art Attractive Space for IRM $1 billion industry with solid growth (1) Global and Fragmented Consolidation opportunity Durable REIT-friendly storage High per-square foot rates (~$60/SF) Durable storage (90% renewal rate) Crozier Acquisition Leading brand in North America Driver of global industry standards Strong storage (58%) and storage related services (34%) mix (2) ~$30M annual revenue (2), 30%+ expected stabilized Adjusted OIBDA margins Year 1 accretive We Complement Crozier Secure storage expertise Legacy of trust Chain of custody and logistics And Bring Some Critical Advantages Global footprint Roll-up experience Marquee clients in entertainment and government (1) Source: Proprietary industry research

30 Northern Virginia Site Supports Scale and Long-Term Growth Site Opportunity acre site allows for 640,000 square feet in four buildings using a single-story design Power capacity utilizing multiple underground feeds from a nearby substation, with additional capacity available Hayden Road, Manassas, VA Proposed Site Plan Abundant fiber on site and low latency to the major exchange points in nearby Ashburn, VA Flexibility to support custom government requirements with high security standards Each building is designed for 10.5 MW of critical IT load using a Tier III certified N+1 concurrently maintainable design Building 4 will be constructed first with Buildings 1, 2 and 3 planned for future development Leasing velocity will determine ultimate timing of capital spend

31 Northern Virginia Data Center Financial Projections & Assumptions 31 Estimated Stabilized Returns on Full Development Project ($ in M) Storage Revenue $71 Storage Adjusted OIBDA $47 Storage NOI $53 Estimated Total Investment (IRM and Partners) $441 Assuming full build-out and 100% ownership of all 4 buildings Capital Partners Engaged with development partner to finance Phase I development, July 2017 expected completion Purchase option 3 years following completion Development costs in line with industry and market $700 - $800 per rentable square foot $10M - $11M per MW Ranges based on final density of the building; opportunity to out-perform Conservative lease-up assumptions Reflect new entrant status in a well-established market Rental rates consistent with major providers; $135 - $145/kW/month; stable for last 2-3 years Forecast returns meet or exceed adjacent business targets Mid-teens projected IRR Stabilized NOI Yield of 10-12%

32 Sizable Real Estate Portfolio 32 Storage 88M total square footage (1) Owned: 27M sq. ft. / 303 Buildings Leased: 61M sq. ft. / 1,178 Buildings Owned: 31% of real estate by sq. ft. Average size: 60K sq. ft Records Management Utilization rates (1) Building: 85% Racking: 91% Data Protection Utilization Rates (1),(2) Building: 67% Racking: 80% (1) Building utilization represents total potential building capacity and racking utilization represents installed racking capacity. Rates and data based on Q results. (2) Reflects data for IRM only. Recall s unit of measurement for tapes is not consistent with IRM s methodology. IRM is in the process of converting Recall s data to be able to report DPUs.

33 Real Estate Value Creation Opportunities 33 Racking Lease Consolidation Development Conversion Higher better use Property Mgt. Scope: Growth racking Stabilized Return Range: 25 % + Example: Harris Tech Blvd, Charlotte, NC Scope: 5 10 markets in NA, $80 90M investment over 3-5 years Stabilized Return Range: % Example: Philadelphia, PA Scope: Control land, development JVs Stabilized Return Range: Competitive BTS rents, low teens IRR Example: Manassas, VA / Ezeiza II, Argentina Scope: Initial analysis ~ 50 assets w/o LT renewal options (3-3.5MSF) Stabilized Return Range: 8 10 % Example: Church St, Morrisville, NC Scope: Maximizing value of existing asset base through sale or conversion (~ 10 potential conversion assets) Stabilized Return Range: % + Example: Sale for redevelopment, convert for consumer or art storage Scope: enhance active management of former Recall portfolio Potential improvement in facility costs

34 Lease Consolidation Opportunity Post-Recall 34 Market characteristics for consolidations Scope and Return 1. Strategic, long-term market 2. Multiple leased facilities with low density and/or utilization 3. Significant capital expenditure requirements for facility upgrades/rack remediation 4. Leases with significant risk of rent inflation Initial Analysis Chicago, Cleveland, Detroit, Houston, Dallas, Jacksonville, Portland France, Spain, the United Kingdom and Australia Total Potential Investment of $80M - $90M over 3 5 years Projected IRRs: 10% - 15%

35 Recall Acquisition and Transformation

36 Successfully Integrating the Recall Business 36 Leadership teams engaged; strong collaboration across legacy companies Retained legacy Recall talent to lead key areas such as SMB sales Completed conversions to support REIT structure Completed disposition of 13 markets in the U.S. Evaluating bids on other required dispositions Reviewed service offerings to determine optimal platforms Conducted real estate reviews to identify initial consolidation opportunities

37 Strong Integration Progress and Pulling Forward of Synergies (as of 08/04/16) $ in M Total Expected Run-Rate Gross Synergies from Actions Taken in $40 $55 $95 Actioned - YTD July To be Actioned - August - December 2016 >80% of 2017 Gross Synergies Planned for Expected Synergies $20 $35 $115 $95 $80 Expect Run- Rate Gross Synergies from 2016 Actions In Year Benefit of Actions to be Taken in 2017 Total Expected Gross Synergies for 2017 Total Full Year Divestitures Expected Net Synergies

38 Estimated Recall Synergies and Costs to Achieve Estimated Total Net Synergies (1) Anticipated at Full Integration Estimated Cumulative One-time Costs to Achieve and Integrate (2) Includes Operating and Capital Expenditures and In Line with Prior Guidance 38 Debt financed as incurred $300 $80 $100 $105 $80 $18 $135 $240 $270 $ Fully Synergized Overhead Cost of Sales Tax Real Estate Fully Synergized Operating Expense Capital Expense (3) Estimates are as of 08/04/16 (1) Synergies are net of divestitures but do not reflect impact of costs to achieve synergies and integrate businesses. Synergy estimates are preliminary and may change as ongoing analysis and integration planning progresses. (2) Cost to achieve synergies and integrate businesses includes moving, racking, severance costs, Facilities Upgrade Program, REIT conversion costs, system integration costs and costs to complete the divestitures and any transitional services required to support the divested business during a transition period. This is in line with previous guidance but excludes one-off deal close and divestments costs of approximately $80M. (3) 2016 incudes approximately $20M of incurred in 2015 to prepare for integration

39 Transformation Program on Track 39 Developing and acquiring talent and capabilities to execute on plans Instilling a continuous improvement and owner / entrepreneurial mindset into culture Executed over $28M of targeted $50M 2016 SGA Savings Approximately half of 2016 savings are non-comp related Validating Opportunity Line of Sight for 2016 Executed in 2015 and 2016 $125M $100M $75M $50M, targeted 2016 Run-Rate $25M

40 Guidance and Summary

41 Recall Expected to Significantly Enhance Estimated Financial Performance (as of 08/04/16) 41 Worldwide Revenue (2016 C$ in M) Projected Minimum Dividend per Share (1) $3,680 $3, E - Normalized to Reflect REC FY Benefit $4,365 $4, E $2.54 $2.20 $2.35 $1.91 $ Dividend as % of AFFO (2) Adjusted OIBDA (2016 C$ in M) 77% 2016E 70% 2020E $1,140 $1, E - Normalized to Reflect REC FY Benefit $1,600 $1, E Lease Adjusted Leverage Ratio (2) (1) Assumes 263M shares outstanding at closing of Recall transaction dividend per share reflects midpoint guidance as presented on Page 45. (2) 2016E reflects midpoint of 2016 Guidance. 5.7x 2016E 5.0x 2020E

42 2016 Guidance Reflects Expected Recall Benefit 42 ($ in millions, except per share data) 2016 Guidance (as of 8/04/16) Revenue $3,450 $3,550 Adj. OIBDA $1,075 $1,110 Adj. EPS $1.10 $1.20 (1) Normalized FFO/Sh. $2.15 $2.25 (1) AFFO $610 $650 Capital Expenses and Investments 2016 Guidance (as of 8/04/16) Maintenance $90 Non-RE Investment $80 Total Capital Expenses $170 Real Estate Investments $320 Business and Customer Acquisitions $140 $180 Total Capital Investments $460 $500 (1) Assumes weighted average shares of 246 million shares for full year 2016 (263 million shares outstanding at closing). Adj. EPS and FFO/share includes purchase price accounting adjustments

43 Estimated Cash Available for Dividends and Discretionary Investment Cash Available for Distribution and Investment ($M) on 2016C$ Basis Numbers reflect midpoint of guidance 2016E As of 08/04/ E As of 08/04/16 IRM + REC Pro Forma Adj. OIBDA $1,040 $1,525 Benefit from Transformation $50 $125 PF IRM Adj. OIBDA $1,090 $1, Add: Stock Compensation/Other Adj. OIBDA, Transformation and Other Non Cash Expenses $1,135 $1,700 Less: Cash Interest Cash Taxes Real Estate and Non-Real Estate Maintenance Capex Non-Real Estate Investment Customer Acquisition Costs (1) Cash Available for Dividends and Investments $600 $945 Expected Total Regular Dividend $490 $685 Racking Investment for on-going growth $70 $105 Cash Available for Discretionary Investments $40 $155 Lease Adjusted Leverage Ratio 5.7X 5.0X (1) Includes costs associated with the acquisition of customer relationships and customer inducements such as move costs and permanent withdrawal fees.

44 Business Services Spreads Across Various Ratings (5yr+ Maturities) 44 Recent debt pricing reflects favorable view of predictable cash flow from business IRM 5-year unsecured debt priced at spreads similar to business services issuers rated two notches higher and at top of spread range for investment grade issuers Source: Bank of America Merrill Lynch - Bloomberg, FactSet. Market data as of May 24, (1) Where a company has mixed ratings, the lower of Moody s or S&P ratings is depicted. (2) Excludes IRM. IRM Debt to LTM EBITDA is 5.0X

45 Driving Durable Cash Flow to Support Business and Dividend Growth 45 Leading Global Presence Large, global and diversified business underpinned by more than 85M sq. ft. of real estate Strategic Plan: 2020 Vision On track and delivering per guidance; 2020 Vision to accelerate growth Durable cash flow and Strong Dividend Growth Durable business generates significant cash, supports dividend growth and investments

46 Appendix

47 Q2 and YTD 2016 Financial Highlights 47 (1) In Q4 2015, we revised the reconciliation of FFO (NAREIT), FFO (Normalized) and AFFO to reconcile these Non-GAAP measures to consolidated net income, rather than net income attributable to Iron Mountain. We have revised the Q reconciliation of FFO (NAREIT), FFO (Normalized) and AFFO to conform to current year presentation. (2) See slide 26 for Storage Net Operating Income reconciliation.

48 Q2 and YTD 2016 Revenue Growth 48

49 Q Revenue Growth 49

50 Q Adj. OIBDA 50

51 Q Adj. EPS 51

52 Q FFO per Share 52

53 Definitions Non-GAAP Measures: 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 when evaluating our financial performance. These non-gaap measures should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with accounting principles generally accepted in the Unites States of America ( GAAP ), such as operating or net income (loss) or cash flows from operating activities from continuing operations (as determined in accordance with GAAP). 53 Adjusted Earnings Per Share, or Adj. EPS: Adjusted EPS is defined as reported earnings per share from continuing operations excluding: (1) (gain) loss on disposal/write-down of property, plant and equipment (excluding real estate), net; (2) gain on sale of real estate, net of tax; (3) intangible impairments; (4) other expense (income), net; (5) Recall Costs; (6) REIT Costs; (6) other expense (income), net; and (7) the tax impact of reconciling items and discrete tax items. We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results. We believe Adjusted EPS is of value to our current and potential investors when comparing our results from past, present and future periods. Adjusted Funds From Operations, or AFFO: AFFO is defined as FFO (Normalized) excluding non-cash rent expense or income, plus depreciation on non-real estate assets, amortization expense (including amortization of deferred financing costs) and non-cash equity compensation expense, less maintenance and Recall integration capital expenditures and non-real estate investments. We believe AFFO is a useful measure in determining our ability to generate excess cash that may be used for reinvestment in the business, discretionary deployment in investments such as real estate or acquisition opportunities, returning of capital to our stockholders and voluntary prepayments of indebtedness. Additionally AFFO is reconciled to cash flow from operations to adjust for real estate and REIT tax adjustments, REIT costs, Recall costs, working capital adjustments and other non-cash expenses. Adjusted Operating Income Before Depreciation, Amortization, Intangible Impairments, and REIT Costs, or Adjusted OIBDA and Adjusted OIBDA Margin: Adjusted OIBDA is defined as operating income before depreciation, amortization, intangible impairments, (gain) loss on disposal/write-down of property, plant and equipment (excluding real estate), net, Recall Costs and REIT Costs. Adjusted OIBDA Margin is calculated by dividing Adjusted OIBDA by total revenues. We use multiples of current or projected Adjusted OIBDA in conjunction with our discounted cash flow models to determine our estimated overall enterprise valuation and to evaluate acquisition targets. We believe Adjusted OIBDA and Adjusted OIBDA Margin provide our current and potential investors with relevant and useful information regarding our ability to generate cash flow to support business investment. These measures are an integral part of the internal reporting system we use to assess and evaluate the operating performance of our business.

54 Definitions Adjusted Operating Income Before Depreciation, Amortization, Intangible Impairments, and REIT Costs, or Adjusted OIBDA (continued) Adjusted OIBDA does not include certain items that we believe are not indicative of our core operating results, specifically: (1) (gain) loss on disposal/write-down of property, plant and equipment (excluding real estate), net; (2) gain on sale of real estate, net of tax; (3) intangible impairments; (4) Recall Costs; (5) other expense (income), net; (6) income (loss) from discontinued operations, net of tax; (7) gain (loss) on sale of discontinued operations, net of tax; and (8) net income (loss) attributable to noncontrolling interests. Adjusted OIBDA also does not include interest expense, net and the provision (benefit) for income taxes. These expenses are associated with our capitalization and tax structures, which we do not consider when evaluating the operating profitability of our core operations. Finally, Adjusted OIBDA does not include depreciation and amortization expenses, in order to eliminate the impact of capital investments, which we evaluate by comparing capital expenditures to incremental revenue generated and as a percentage of total revenues. Adjusted OIBDA and Adjusted OIBDA Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with accounting principles generally accepted in the United States of America ( GAAP ), such as operating or net income (loss) or cash flows from operating activities (as determined in accordance with GAAP). 54 Funds From Operations, or FFO (NAREIT), and FFO (Normalized) : Funds from operations ( FFO ) is defined by the National Association of Real Estate Investment Trusts ("NAREIT") and us as net income excluding depreciation on real estate assets and gain on sale of real estate, net of tax ( FFO (NAREIT) ). FFO (NAREIT) does not give effect to real estate depreciation because these amounts are computed, under GAAP, to allocate the cost of a property over its useful life. Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, we believe that FFO (NAREIT) provides investors with a clearer view of our operating performance. Our most directly comparable GAAP measure to FFO (NAREIT) is net income. Although NAREIT has published a definition of FFO, modifications to FFO (NAREIT) are common among REITs as companies seek to provide financial measures that most meaningfully reflect their particular business. Our definition of FFO (Normalized) excludes certain items included in FFO (NAREIT) that we believe are not indicative of our core operating results, specifically: (1) (gain) loss on disposal/write-down of property, plant and equipment (excluding real estate), net; (2) intangible impairments; (3) Recall Costs; (4) REIT Costs; (5) other expense (income), net; (6) deferred income taxes and REIT tax adjustments; (7) income (loss) from discontinued operations, net of tax; and (8) gain (loss) on sale of discontinued operations, net of tax.

55 Definitions 55 Recall Costs: Operating expenditures associated with our acquisition of Recall, including operating expenditures to complete the Recall Transaction, including advisory and professional fees and costs to complete the Divestments required in connection with receipt of regulatory approval and to provide transitional services required to support divested businesses during a transition period, as well as operating expenditures to integrate Recall with our existing operations, including moving, severance, facility upgrade, REIT conversion and system upgrade costs. REIT Costs: Includes costs associated with our conversion to a REIT, excluding REIT compliance costs beginning January 1, 2014 which we expect to recur in future periods. Stabilized Returns: Represents return on investment following complete funding of the related investment and achieving expected levels of occupancy or utilization. For additional definitions and for a reconciliation of these Non-GAAP measures to the appropriate GAAP measure, as required by Regulation G under the Securities Exchange Act of 1934, as amended, please see the company s supplemental reporting package under Investor Relations\Financial Information\Quarterly Reporting at