2. Safe Harbor Language and
Reconciliation of Non-GAAP Measures
2
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 to Iron Mountain’s financial performance outlook and shareholder returns,
including after giving effect to Iron Mountain’s acquisition of Recall, statements regarding real estate value creation, data centers, adjacent business and other opportunities and statements
regarding Iron Mountain’s goals, beliefs, plans and expectations. 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.
Non-GAAP Measures:
Throughout this presentation, Iron Mountain will be discussing Adjusted OIBDA, Adjusted EPS, Normalized FFO and AFFO, which 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 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 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 RelationsFinancial
InformationQuarterly Reporting at www.ironmountain.com. 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. Driving Durable Cash Flow to Support
Business and Dividend Growth
3
Durable cash flow and Strong Dividend Growth
Durable business generates significant cash, supports dividend growth and investments
Strategic Plan: 2020 Vision
Three year plan on track and delivering per guidance; 2020 Vision to accelerate growth
Leading Global Presence
Large, global and diversified business underpinned by more than 80 million sq. ft. of real estate
4. Table of Contents
Topic Pages
Iron Mountain Overview 6 – 9
Business Durability 11 – 15
Strategic Plan Performance and 2020 Vision 17 – 25
Capital Allocation and Real Estate Strategy 27 – 36
Recall Acquisition 38 – 41
Guidance and Summary 43 – 47
Appendix 49 – 51
4
6. We Store & Manage Information Assets
6
75% 16% 9%
Records & Information
Management(2) Data Management (2) Shredding (2)
Storage: 70%
Service: 30%
Storage: 60%
Service: 40%
Service: 100%
Diversified Global Business (1)
• More than $3.7 billion annual
revenue(1)(2)
• 220,000+ customers(2)
• Serving 94% of Fortune 1000
• More than 80 million square feet
of real estate in ~1,350 facilities (2)
Compelling Customer Value
Proposition
• Reduce costs and risks of storing and
protecting information assets
• Broadest footprint and range of
services
• Most trusted brand
(1) Annualized revenues reflect midpoint of normalized for FY 2016 guidance
(2) Includes Recall
7. Leading Global Presence
7
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
6 CONTINENTS45 COUNTRIES
Map reflects Recall acquisition
8. “Enterprise Storage” Compares
Favorably
8
Iron Mountain
Actual
Self-Storage Industrial
North America annual rental
revenue/SF
$27.33 $13.80 $5.50
Tenant Improvements/SF N/A N/A $1.96
Maintenance CapEx(1) 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)(2)
Building: 84%
Racking: 91%
90% 93%
Storage Net Operating Margin (3) Storage: 80% 68% 70%
Largest Public REITs
1Q’16 NOI Annualized (4)
IRM Storage: $1,520 million PSA: $1,659 million PLD: $1,520 million
Source: Company estimates and filings. Benchmark data provided by Green Street Advisors and J.P. Morgan.
(1) 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 1Q16 results
(2) Building utilization represents total potential building capacity and racking utilization represents installed racking capacity for the Records Management business
(3) Excludes rent expense.
(4) Represents annualized 1Q16 storage net operating income for IRM, self-storage net operating income for PSA, and net operating income for PLD source from the companies’ supplemental disclosure
9. Storage Rental Stream is Key
Economic Driver
9
-4%
-2%
0%
2%
4%
6%
8%
2007 2008 2009 2010 2011 2012 2013 2014 2015
Coming off higher inflation
and pricing catch up
8-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).
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)
Storage NOI $ 21
Storage Rental ROIC(2) ~14%
(1) Reflects average portfolio pricing and assumes an owned facility.
(2) Includes maintenance CapEx, assumed at 2% of revenue.
Historical Same-store Revenue Growth
11. Global Document Storage Continues to
Demonstrate Strong, Steady Growth
11
6.1% 6.1% 5.9% 5.9% 5.9% 5.7% 5.8% 5.8%
2.5% 2.4% 2.4% 2.4% 2.3% 2.4% 2.5% 2.6%
5.5%
3.4%
1.5% 1.6% 1.0% 1.1% 0.7% 1.6%
-4.7% -4.5% -4.4% -4.4% -4.3% -4.5% -4.6% -4.8%
-2.0% -1.9% -1.9% -2.0% -2.1% -2.1% -2.1% -2.0%
Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16
New Volume from Existing Customers New Sales Acquisitions Destructions Outperm/Terms
Year-over-Year Global Net Volume Growth Rates (Records Management Only)
Net volume before acquisitions (internal volume) growing in every major market
50-year average customer retention; boxes stay with us for an average of 15 years(1)
2% annual volume loss from terminations; no single customer greater than 1% of total revenue
(1) Based on annual volume churn rate of 6.8% as of 1Q16
(2) Customer acquisitions are now included in new sales as the nature of these transactions is similar to new customer wins.
2.1% 2.1% 2.1% 2.0% 1.8% 1.6% 1.6% 1.6%
Internal
Volume
Growth
7.6% 5.5% 3.6% 3.6% 2.8% 2.7% 2.3% 3.2%
Net
Volume
Growth
2
12. North America box inventory has
continued to grow
358 377
79
23 30
69
2 16 19
New from
Existing
New from
New
Outperms &
PW
Destructions+ - - =
Organic
Growth
Acquisitions+ = Total Growth
YE 2011
Balance
YE 2015
Balance
Iron Mountain NA Cube Growth 2012-2015 (CuFt MMs)
Continuing to receive
strong volume, albeit
at a declining pace
(approx. 3.6% CAGR)
Successfully adding
new customers and
inventory at an
increasing rate
(7.5% CAGR)
At historic lows,
having declined
from 2.4% to 1.8%
of total inventory
Virtually
unchanged, holding
at 4.7% of total
inventory
ObservedTrendsHistoricalPerformance
New From Existing New From New Outperms & PWs Destructions
Highly accretive
acquisitions
generate stabilized
returns of 11% -
14%
Acquisitions
13. Key Drivers Support Sustainable
Document Storage Growth
13
On behalf of IRM, Boston Consulting Group conducted survey of more than 700 existing and potential respondents
plus 70 in-depth interviews with large North America customer sample, across six verticals, excluding government
Findings of study include*:
• North American vended box market is large with pockets of growth amidst mature verticals
• Overall North American vended market net volume growth projected to be flat over next 5 years
• Flat to minimal natural volume decline if IRM’s volume growth was consistent with market
Given observed and projected market trends, and based on customer expectations, IRM is confident in its ability to
overcome developed market trends with multiple initiatives, some already in flight:
• Unlock unvended market, which represents more than 50% overall market
• IRM’s targeted efforts in growth segments such as mid-size customers, government and emerging markets
• Robust acquisition pipeline, particularly in emerging markets, where organic growth is high-single to low-double digit
Based on market dynamics and expected changed in revenue mix, IRM is confident in total revenue growth of 4-5%
annually through 2020
• Physical documents remain ultimate form of proof
• Ongoing regulatory requirements
• Customer destructions remain low due to potential risks
*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.
14. NA Vended Document Storage Estimated at ~700M CuFt
(~37% of total storage volume), Excluding Government and SMB
40
0 4020
20
60
0
10080
100
80
60
190M
(11%)
38%
34%
175M
(11%)
Share of
Cuft (%)
55%
60M
(2%)
22%
38%
23%
Life
Sciences
90M
(4%)
Health
care
44%
25%
36%
31%
41%
29%
Vended
Wholly
Unvended
Other
1,000M
(53%)
31%
42%
In-house at
Vended
Customers
Legal
Energy
11%
Financial
services
385M
(20%)
45%
33%
21%
Segmentation of NA box storage volume1
(1) Excludes government and SMB (<250 employees), except Legal which includes 100+ employees.
Source: BCG document storage survey; Avention; BCG analysis
~720M
~700M
Cubic Feet
~480M
Total ~1.9 B cu ft
Vended ~700 M cu ft
Share of
Cuft (%)
14
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.
15. 0%
20%
40%
60%
80%
100%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Retention rate
Predictable and Steady Box
Retention Rate
IRM Retention Rate – North America
As of March 31, 2016
50% of boxes that were
stored 15 years ago still
remain
25% of boxes that
were stored 22 years
ago still remain
Box Age
17. Strategic Plan Delivering Expected
Results
17
*Reflects data from Jan 2014 through December 2015
DEVELOPED
MARKETS
8M cu. ft. Net RM
Volume prior to
Acquisitions*
OUR PLAN FOR GROWTH
EMERGING
MARKETS
Emerging Markets =
15% of Total
Revenues on a
C$ basis
ADJACENT
BUSINESSES
New Data Center
Customers and
Expanded into
Art Storage
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
GROWTHandVALUE
PILLARS
ENABLERS
Consolidate properties for maximum efficiency, leverage development and lease conversion opportunities
18. Strategic Plan Driven Performance
Turnaround Since Year-end 2013
18
$1.08
$1.91
2013 2015
$2,894 $3,011 $3,078
2013 2014 2015
Worldwide Revenue (C$ in MM) Adjusted OIBDA (C$ in MM) Regular Dividend per Share
$861
$898
$940
2013 2014 2015
2013 - 2015
Revenue
C$ CAGR
1% 33% 20%
DEVELOPED
MARKETS
EMERGING
MARKETS
ADJACENT
BUSINESSES
STRATEGIC PLAN
19. Significant Improvement in Internal
Revenue Growth Since 2012
19
3.0%
2.1% 2.2%
2.7%
-4.4%
-3.4%
-0.7% -0.4%
2012 2013 2014 2015
Storage Internal Growth Service Internal Growth
Internal Revenue Growth(1)
-0.4%
-0.3%
1.0%
1.5%
2.0%
2012 2013 2014 2015 2016 -
Guidance
Midpoint
Internal Storage Rental and Service Growth Total Internal Growth
(1) Internal Revenue Growth – Internal revenue growth represents the year-over-year growth rate of revenues excluding the impacts of changes to foreign currency
exchange rates, acquisitions and other unusual items. In general, only business acquisitions that have been in our results for the full calendar year prior to the quarter
of measurement are included in internal revenue growth
20. Standalone Plan to Extend
Performance with 2020 Vision
20
75% Developed Core 25% Growth Portfolio
Emerging Markets = 20%
Adjacent Businesses = 5%
3% Adj. OIBDA 10% Adj. OIBDA
~5% Average Internal Adj. OIBDA Growth
ROIC = 14%
85% Developed Core 15% Growth Portfolio
Emerging Markets = 14%
Adjacent Businesses = 1%
2% Adj. OIBDA 10% Adj. OIBDA
~3% Average Internal Adj. OIBDA Growth
ROIC = 12%
TODAY
Prior to Recall acquisition
Today represents view as of Investor Day - October 2015
2020
21. Summary of Financial Roadmap
2015 – 2020
21
Growing Storage
Revenues And Margins
Stabilized Service
Gross Margin
Improved SG&A
Efficiency
Disciplined Capital
Spend on Maintenance,
Non-Real Estate
Investment and Racking
Dividend Growth
Per Share
Accretive Acquisitions,
Real Estate and Adjacent
Businesses
Consistent
Contribution
and Cash Flow
Improvement
22. Growing Storage Revenues and
Margins
22
3.1% 3.0%
2.1% 2.2%
2.7%
2011 2012 2013 2014 2015
Total Internal Storage Rental Growth
72.8%
73.6%
75.3%
76.6% 76.6%
2011 2012 2013 2014 2015
(1) Data as of FY 2015
(2) Includes rent expense and doesn’t include termination and permanent withdrawal fees. 2015 Storage Gross Margin impacted by accounting
adjustments in Q2 2015
Storage 61% of
Total Revenue(1)
Storage 82% of Total
Gross Profit(1)
Maintain annual growth
of 2.5% to 3% through 2020
Modest annual growth,
reach 79% by 2020
Storage Gross Margin(2)
23. Stabilized Service Gross Margins
23
40.9%
27.7% 27.2%(2)
2011 Service Gross
Margin
2014 Service Gross
Margin
2015 Service Gross
Margin
Improve growth to 1% - 2%
annually 2016 through 2020
Archival trends moderate
Maintain progress in scanning,
projects and shredding
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
Service 39% of
Total Revenue(1)
Service 18% of
Total Gross
Profit(1)
(1) Data as of FY 2015
(2) 2015 Gross Margin represents Q4-2015
Total Service Gross Profit
0.4%
(4.4%)
(3.4%)
(0.7%) (0.4%)
2011 2012 2013 2014 2015
Total Internal Service Revenue Growth
24. Worldwide Service Gross Margin
Improvement
24
Total Company Service Revenue (2015 C$ in MM)
Area / CAGR
RM – Activity-Based 0%
Shred Non-Paper -2%
DM – Activity-Based -6%
DMS +9%
Shred Paper +1%
Other Services +4%
Note: Examples of activity based service include retrieval refile; other services include library moves and Secure
IT Asset Disposition
39% 39% 38%
16% 15% 13%
7% 9% 9%
15% 14% 14%
2015
$1,201
6%
$1,209
20142013
$1,181
6% 7%
17% 17% 19%
• Shifting revenue mix to project-
based 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
25. Improved SG&A Efficiencies –
Transformation
25
• 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 Q3’15 expected to generate run-rate
savings in 2016 of $50 million
• Actions to be taken in 2016 expected to generate
additional $50 million of run-rate savings in 2017
Estimated SG&A(1) as % of Revenue
$50
$100
$125
2016 2017 2018
Estimated Cumulative SG&A Savings
20.0%
22.0%
24.0%
26.0%
28.0%
30.0%
2013 2014 2015 2016E 2017E 2018E 2019E 2020E
IRM Trend
Transformation
(1) Excludes REIT Costs and Recall Costs
28. 28
Acquisition Spend/Yr. $100 MM
Ongoing Topline Growth 10% + Storage Rental
Expected Returns 13% – 14%
Emerging Markets Acquisition Economics*
Acquisition Spend/Yr. $50 MM
Ongoing Topline Growth 2 -3% + Storage Rental
Expected Returns 11% – 13%
Developed Markets Acquisition Economics*
Tuck-in deals offer
predictable return and
quickly synergize
Strong returns,
supports progress to
increase exposure to
higher growth markets
M&A Delivers Solid Growth and Returns
* Reflects assumptions for 2016 - 2020
29. Adjacent Businesses Offer Potential
Further Upside
29
Capital Invested $78 MM in 2015
Expected Returns 13%
Stabilization 18 months
Capital Invested Per Year $35 MM/Yr.
Expected Returns 12-15%
Stabilization 2-3 years
Data Center Economics*
• 2020 Target = 5% of total Revenue
• 10% long-term organic growth
• Data center continued organic growth offering good returns
• Art storage through Crozier acquisition
Art Storage Economics
Data reflects assumptions for 2016 – 2020, unless otherwise noted
Data center economics represent invested capital in existing facilities and business and
exclude large specific development projects and acquisitions
30. Northern Virginia Site Supports
Scale and Long-Term Growth
30
Site Opportunity
• 83 acre site allows for 640,000 square feet in (4)
buildings using a single-story design
• Power capacity utilizing multiple underground
feeds from a nearby substation, with additional
capacity available
• 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
11650 Hayden Road,
Manassas, VA
Proposed Site Plan
31. Northern Virginia Data Center
Financial Projections & Assumptions
31
• Capital Partners
• Engaged with potential 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 -
$145/kW/month; stable for last 2-3 years
• Forecast returns meet or exceed adjacent business targets
• Mid-teens projected IRR
• Stabilized NOI Yield of 10 - 12%
Estimated Stabilized Returns on Full
Development Project
($ MM)
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
32. Formalizing Art Business with
Acquisition of Premier Brand
32
• $1 billion industry with solid growth(1)
• Global
• Fragmented
• Durable REIT-friendly storage
• High per-square foot rates (~$60/SF)
• Durable storage (90% renewal rate)
• Leading brand in North America
• Driver of global industry standards
• Strong storage (58%) and storage related
services (34%) focus
• ~$30MM annual revenue, 30%+ stabilized
Adjusted OIBDA margins
• Year 1 accretive
Crozier AcquisitionFine Art Attractive Space for IRM
(1) Source: Proprietary industry research
• Secure storage expertise
• Legacy of trust
• Chain of custody and logistics
• Global footprint
• Roll-up experience
• Marquee clients in entertainment and government
And Bring Some Critical AdvantagesWe Complement Crozier
33. Sizable Real Estate Portfolio –
Excluding Recall
33
Storage
(1) Building utilization represents total potential building capacity and racking utilization represents installed racking capacity. Rates and data based on Q1 2016 results.
70 million total square footage (1)
• Owned: 26 million sq. ft. / 277 Buildings
• Leased: 44 million sq. ft. / 860 Buildings
• Owned: 37% of real estate by sq. ft.
• Average size: 62k sq. ft
Records Management Utilization rates (1)
• Building: 84%
• Racking: 91%
Data Protection Utilization Rates (1)
• Building: 70%
• Racking: 82%
34. Real Estate Value Creation
Opportunities
34
Lease
Consolidation
• Scope: 5 –10 markets in NA, $80 – 90M investment over 3-5 years
• Stabilized Return Range: 10 – 15 %
• Example: Philadelphia, PA
Development
• Scope: Control land, development JVs
• Stabilized Return Range: Competitive BTS rents, low teens IRR
• Example: Manassas, VA / Ezeiza II, Argentina
• Scope: ~ $50M LTV, 17 facilities in 4 states
• Current market borrowing rate in mid 3-sSecured debt
Conversion
• Scope: Initial analysis ~ 50 assets w/o LT renewal options (3-3.5MSF)
• Stabilized Return Range: 8 – 10 %
• Example: Church St, Morrisville, NC
Higher better use
• Scope: Maximizing value of existing asset base through sale or conversion (~ 10 potential conversion assets)
• Stabilized Return Range: 15 – 20 % +
• Example: Sale for redevelopment, convert for consumer or art storage
Racking
• Scope: Growth racking
• Stabilized Return Range: 25 % +
• Example: Harris Tech Blvd, Charlotte, NC
35. Lease Consolidation Opportunity
Post-Recall
35
Scope and Return
Market characteristics
for consolidations
• Initial Analysis - combined NA Portfolio
• Chicago, Cleveland, Detroit, Houston, Dallas,
Jacksonville, Portland
• Total Potential Investment of $80M - $90M
over 3 – 5 years
• Projected IRRs: 10% - 15%
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
36. Targeted Lease Conversion Pipeline
36
Potential Pipeline 3-3.5M SFTarget Conversion facilities
have the following attributes:
1. Strategic locations and building types
with maximum appreciation potential
2. Core to IRM’s business operations /
network
3. Facilities IRM wants to control -
significant risk of lease rate inflation
or relocation
38. Recall Acquisition Closed
• Compelling opportunity to accelerate IRM’s successful strategy
• Broader geographic footprint, exposure to high growth emerging markets
and meaningful cost synergy opportunities
• Supports medium term deleveraging
• Complementary to REIT structure
• Regulatory review complete in US, Canada and Australia
• Recall shareholders overwhelmingly approved deal on April 19
• Final Australian court approval of transaction received on April 21
• Deal closed on May 2, 2016
• UK Phase 2 Review expected to conclude June 29
• UK Recall business to be held separate
38
39. Estimated Recall Synergies and
Costs to Achieve
39
$125
$230 $260
$220
$80
$300
2016 2017 2018 Fully Synergized
Operating Expense Capital Expense
$15
$80
$100 $105
2016 2017 2018 Fully
Synergized
Overhead Cost of Sales Tax Real Estate
(1) Net synergies 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 transaction costs of approximately
$80 million in implementing the Scheme.
(3) 2016 incudes approximately $20 million of incurred in 2015 to prepare for integration
Estimated Total Net Synergies(1)
Anticipated at Full Integration
Estimated Cumulative One-time Costs to Achieve and Integrate(2)
Includes Operating and Capital Expenditures and In Line with
Prior Guidance
Debt financed as incurred
(3)
Estimates are as of 04/01/16
40. Estimated Cash Available for Dividends
and Discretionary Investment
40
Cash Available for Distribution and Investment ($MM) on R$ basis /2016C$ Basis I-day October 2015
Numbers reflect midpoint of guidance
2016E + Recall
As of 04/28/16
2020 Vision + Recall
Based on 2015 C$ Rates
2020 Vision + Recall
As of 04/28/16
IRM + REC PF Adj. OIBDA $1,040 $1,650 $1,525
Benefit from Transformation $50 $125 $125
PF IRM Adj. OIBDA $1,090 $1,775 $1,650
Add: Stock Compensation/Other 45 50 50
Adj. OIBDA, Transformation and Other Non Cash Expenses $1,135 1,825 $1,700
Less: Cash Interest 300 400 400
Cash Taxes 30 150 130
Real Estate and Non-Real Estate Maintenance Capex 90 120 100
Non-Real Estate Investment 80 105 85
Customer Acquisitions(1) 35 50 40
Cash Available for Dividends and Investments $600 2015 C$1,000 / R$ 955 $945
Expected Total Regular Dividend (dividend per share remains the same) $492 $700 $685
Racking Investment for on-going growth $70 $105 $105
Cash Available for Discretionary Investments $38 $150 $155
Lease Adjusted Leverage Ratio 5.7X 4.9X 5.0X
(1) Customer acquisitions includes costs associated with the acquisition of customer relationships and customer inducements such as move costs and
permanent withdrawal fees.
R$ basis is equivalent to 2016 C$ rates and figures may not tie due to rounding
41. Estimated Earnings, FFO and AFFO
Accretion – Excluding 2020 Plan
41
• The bar chart percentages for Adj. EPS Accretion and Normalized FFO Accretion do not reflect the impact of estimated purchase accounting
adjustments, primarily fair value adjustments associated with Recall’s tangible and intangible assets that Iron Mountain will record upon closing in
accordance with GAAP.
• While the adjustments are expected to result in a significant increase in depreciation and amortization expenses, the adjustments are primarily related to
non-cash items and will not have a significant impact on cash flows, AFFO or estimated synergies. Therefore, the adjustments do not impact the fair
value assessment of the transaction.
• Accretion/dilution after adjusting for impact of non-cash U.S. GAAP purchase price adjustments:
• Adj. EPS: 6% on a Fully Synergized basis
• Normalized FFO: 4% on a Fully Synergized basis
Note: Assumes IRM shares outstanding of 267 million at close, and exchange ratio of 0.1722x. Accretion estimates are on a per share basis and do not include operating and capital expenditures related to integration, as these are one time in nature and will be
excluded from our Adj. EPS, Normalized FFO and AFFO. Assumptions represent our current analysis and are subject to change as our analysis and integration planning process progresses. Effective tax rate estimated to be approximately 19%.
Adjusted EPS Accretion Normalized FFO Accretion AFFO Accretion
Meaningful Accretion Across Relevant Financial Metrics (as of 04/01/16)
Accretion Percentages Reflect Updated Estimated Synergies Achieved in Each Year – Excluding IRM 2020 Plan
1%
5% 5%
6%
2016 2017 2018 Fully
Synergized
3%
7% 7% 7%
2016 2017 2018 Fully
Synergized
0%
14% 15% 16%
2016 2017 2018 Fully
Synergized
43. Preliminary 2016 Guidance Reflects
Expected Recall Benefit
43
($ in millions, except per share data) Preliminary 2016 Guidance With Recall (as of 4/28/16)
Revenue $3,450 – $3,550
Adj. OIBDA $1,070 – $1,110
Adj. EPS $1.10 – $1.20(1),(2)
Normalize d FFO/Sh. $2.10 – $2.20(1),(2)
AFFO $610 – $650
Capital Expenses and Investments Preliminary 2016 Guidance with Recall (as of 04/28/16)
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 253 million shares for full year 2016 (267 million shares outstanding at closing)
(2) Adj. EPS and FFO/share includes purchase price accounting adjustments (PPA), which results in $64 million of incremental D&A expense.
Preliminary 2016 Guidance with Recall assumes all divestitures will be effective day 1 and an effective tax rate estimated to be approximately 19%.
Assumptions represent our current analysis and are subject to change as our analysis and integration planning process progresses
44. Recall Expected to Significantly Enhance
Estimated Financial Performance (as of 04/28/16)
44
$1,140 –
$1,180
$1,600 –
$1,700
2016E - Normalized to
Reflect REC FY Benefit
2020E
$1.91 $1.94
$2.20 $2.35
$2.54
2015 2016 2017 2018 2020
$3,680 –
$3,780
$4,365 –
$4,465
2016E - Normalized to
Reflect REC FY
Benefit
2020E
Worldwide Revenue (2016 C$ / R$ in MM)
(1) Assumes 267 million shares outstanding at closing of Recall transaction. 2020 dividend per share reflects midpoint of CAD guidance see Page 43.
78%
70%
2015 2020E
Lease Adjusted Leverage Ratio
Dividend as % of AFFO
Adjusted OIBDA (2016 C$ / R$ in MM)
Projected Minimum Dividend per Share (1)
5.6x
5.0x
2015 2020E
45. Recall Expected to Enhance Cash Available
for Dividends and Discretionary Investment
45
$38
$155$70
$105
$492
$685
2016E 2020E
Cash for Investment Organic Growth Racking Dividend
$945
$600
Cash Available for Dividends and Discretionary Growth
Investments (as of 04/28/16)
$ in mm
46. Business Services Spreads Across
Various Ratings (5yr+ Maturities)
46
Source: Bank of America Merrill Lynch - Bloomberg, FactSet. Market data as of May 24, 2016.
(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
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
47. Key Takeaways
47
Durable RM volume growth delivered; internal and with acquisitions
Strategic plan drives sustainable dividend growth and future investments
Debt financed investments; equity not required to achieve plan
Recall acquisition delivers attractive synergies and supports core growth
Adjacent Businesses provide upside potential and are closely linked to core
Strong Cash Flow Generation
49. Definitions
49
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) Recall Costs (as defined below); (5) REIT Costs (as defined below); (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 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.
50. Definitions
50
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) REIT Costs; (6) other expense (income), net; (7) income (loss) from discontinued operations, net of tax; (8) gain (loss) on sale of
discontinued operations, net of tax; and (9) 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 GAAP, such as operating or net income (loss) or cash flows from operating activities from
continuing operations (as determined in accordance with GAAP).
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 (i) depreciation on real estate assets and (ii) 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.
51. Definitions
51
Recall Costs: Includes operating expenditures associated with our proposed acquisition of Recall, including costs to complete the Recall Transaction,
including advisory and professional fees, as well as costs incurred to integrate Recall with our existing operations, including moving, severance, facility
upgrade, REIT conversion, system upgrade costs and costs to complete the divestitures required in connection with receipt of regulatory approval and to
provide transitional services required to support the divested businesses during a transition period.
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 RelationsFinancial
InformationQuarterly Reporting at www.ironmountain.com.
