© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
3
Safe Harbor Language and Reconciliation
of Non-GAAP Measures
Safe Harbor Statement Under the Private Securities Litigati...
4
Today’s Agenda
9:05 Investment Strategy to Deliver Enhanced Returns William Meaney, President and CEO
9:45 Emerging Mark...
5
We Store & Manage Information Assets
74% 18% 8%
Records Management Data Management Shredding
6
Diversified Global Business
 $3B annual revenues
 >155,000 customers
 Serving 95% of Fortune 1000
 67MM SF of real e...
7
Large & growing
 59% of revenues ($1.8B)
 4% constant dollar growth
GDP correlated & inflation hedged
Diversified cust...
8
Durable, Growing Storage Rental Revenue
2013
$1,785
Storage Rental ($MM)
25 Consecutive Years of Storage Rental Growth
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
10
Leveraging the Brand
Deliver Opportunity
11
What You Will Hear Today
Iron Mountain is a durable, high-return business that will generate
significant excess free ca...
12
Stable Incoming Storage Volume
 Consistent 6-7% new volume from existing customers globally
 Cut sheet paper demand g...
13
Increased Use of Technology Driving Secular Trends
Main impact of technology is on service activity
 Archival data – D...
14
Overall business trends similar
to healthcare vertical trend
 Storage rental larger portion of
total revenue
 Storage...
15
Large & Diversified Global Market Opportunity Remains
 Substantial un-vended opportunity remains in Developed Markets
...
16
Strategy to Extend Durability of Business
Speed and Agility
Simplification, Process Automation and Efficiency
Developed...
17
Getting More out of Developed
Markets
 Sales force excellence
 Revenue management
 Speed & agility
 Acquisitions
St...
18
Capturing Opportunity in
Emerging Markets
 Investing to drive leadership in
key emerging markets
 Key drivers of emer...
19
 Developed Markets
 Optimize storage growth
opportunities while maintaining
attractive returns
 Emerging Markets
 I...
20
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012...
21
Aligning the Organization for Success
 Organizing for profitable growth informed by markets
and customers in core busi...
22
New Organization Structure
Finance
Strategy
& Talent
Legal, Risk
& Security
Global
Support
Services
Commercial
/ CMO
Re...
23
Strategic Plan Drives Solid Revenue Growth
$3,026
$3,360-
$3,470
$2,200
$2,400
$2,600
$2,800
$3,000
$3,200
$3,400
$3,60...
24
Low-risk, Moderate Growth with Attractive Yield
Driving Total Shareholder Returns - projected to be between 8% to 9%
$9...
25
Generating Consistent Returns with Upside Potential
Deliver Opportunity
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
27
Attractive, growing International business
 $846MM in revenues for 2013
 $474MM in storage rental for 2013
10% C$ sto...
28
Achieved 3-year profitability and
ROIC goals
 700 bps Adjusted OIBDA margin
improvement
 400 bps ROIC improvement
 A...
29
Growing International Portfolio with Attractive Returns
72%
18%
7%
3%
NA Europe Latin America Asia Pac
7%
10%
Internati...
30
Build high performance leadership teams
Drive organic growth
 Continued strong storage growth
 Enhanced retention and...
31
M&A Key Driver of Emerging Market Leadership Strategy
10%
16%
2013 2016 E
$319
2013 2016 E
Base Acquisitions
$100-
$120...
32
 $500 MM+ revenue pipeline
 Diversified portfolio of targets
 Streamlined acquisition process
M&A Pipeline is Strong...
33
$1
$13
2011 2014 E
1%
15%
$51
$87
2011 2014 E
• 2 acquisitions in last 18 months
• Revenue nearly doubled
• 3,000 new c...
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
35
Similar Business Fundamentals Globally
81%
10%
6%
3%
NA UKI Continental Western Europe AUS
10%
13%
International Develo...
36
 Sustained growth in storage volumes
 Revenue management
 Sales productivity efficiency and
effectiveness
 Customer...
37
Adj. OIBDA ($MM)Continuous improvement in operational
efficiency
 Storage network consolidation
and utilization
 Ware...
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
39
$2.2B in annual revenues
 $1.3B in annual storage rental
Unparalleled secure logistics platform
 Secure chain of cust...
40
C$ Storage Rental Growth Invest to sustain high-return
platform
 Grow storage rental as a priority
 Drive strong cas...
41
Records and Information Management (RIM)
$1.8B in total NA RIM revenues
 $1.4B in Records Management (RM)
 $1B in sto...
42
Consistent Records Management Volume Growth
6.0% 6.1% 6.1% 6.1% 5.9% 5.6% 5.6% 5.5%
1.0% 0.9% 0.9% 0.9% 1.0% 1.2% 1.3% ...
43
RIM Market
~$8 B
Opportunity within our Customer Base
 Addressable and targeted
 Commercial segments: 303MM CF
 Nati...
44
RIM Business Unit
Eastern US
Region
Western US
Region
Canada Other Sales
Business
Office
Operations
Support
Corporate
F...
45
2012 2013
RM Bookings Total Pipeline
2012 2013
RM Bookings Total Pipeline
 Focus on top tier customers in each vertica...
46
Sales Force Excellence Initiative
Five Major Objectives
Bottom-Up
Market Database Accountability and Best Practices
Tra...
47
 Long-term real estate
commitment
 Broaden service capability
and establish operations in
markets offering strong
lon...
48
 Transportation Efficiency
 Co-sourcing specific
routine operational
functions
 Consolidation - Imaging
Center Footp...
49
$2,694
$2,810-
$2,870
$1,047
$1,100-
$1,150
2013 Actual 2016 Targets
Revenue Adjusted OIBDA
Developed Market Targets
($...
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
51
Tape Vaulting Other*
Sizable North American Data Management Business
(1) Note: Insert note text
~$400MM in revenue
18% ...
52
The Role of Tape is Changing
Backup of Last Resort
Data Archiving
(Cold Storage)
Long-term Retention for Compliance
and...
53
Tape in Data Center
What role will tape play in enterprise
data protection strategies?
85% Used as part of a hybrid bac...
54
Tape Continues to be Key Element of Data Storage
2-4 Orders of magnitude more reliable
than disk drives NERSC
15 Tape s...
55
Our Solutions Support Ongoing Need
Problems
Addressed
Products
Solutions
- Backup
- Recovery
- Server
backup
- PC backu...
56
Helps companies manage data from
legacy systems
Optimal data protection and cost savings
 Data is off-line to protect ...
57
Securely Manage End-of-Life IT Assets
Destroy, recycle or repurpose various
IT equipment
All types of IT assets
 Tapes...
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
59
EBO team incubates and pilots ideas and manages handoff to business
EBOs
 Large enough to move the dial in 3
to 5 year...
60
How We Think About Emerging Businesses
Markets to be
Created
Current IRM
Markets
Existing
Markets but
New to IRM
MARKET...
61
 Meaningful physical storage
component for low-velocity assets
 Strong need to manage meta-
data about the physical a...
62
One We Scrapped
 Co-developed solution with
Crossroads’ StrongBox solution
for lower-cost data storage
 Technology wa...
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
64
We know more about our
customers’ data centers than
anyone
Customers seek our help due
to long relationship of trust,
c...
65
The Opportunity is Big
Multi–Tenant
Colocation
Capturing 5% Market Share of New Market Growth Adds ~1% to IRM Growth
$8...
66
Hiring team with deep
experience
Minimizing capital at risk
Avoiding markets where there
is supply / demand imbalance
W...
67
2014 Capital Deployment Focused in Current Footprint
Location Phase Timeframe KW SF
Current Planned
Investment
Boyers, ...
68
Cost to Build and Fill Inventory In-line with Competition
 Slightly higher construction costs
 Lower selling costs
 ...
69
 Stabilized investments through
2014 will drive $100MM
in value creation
 Delivers pre-tax un-levered
returns of 15%+...
70
Big opportunity through sales
channel to accelerate growth –
existing and new markets in NA
Capacity investment decisio...
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
72
A Disciplined Approach
A brand built upon Security and
Compliance
A strong employee culture committed to:
 Earning cus...
73
Comprehensive Risk Management for Emerging Markets
We assess and manage a range of potential risks,
including those uni...
74
Track Record of Good Corporate Governance
Governance best practices
 Majority voting standard for director elections
...
75
Additional REIT Governance Controls and Practices
Board and management oversight of REIT requirements
Intend to impleme...
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
77
How a Successful REIT
Conversion Will Enhance
Value Creation
How Our Investment
Strategy Flows into Value
Creation
78
REIT Conversion
Began operating in manner consistent with REIT effective 1/1/2014
REIT structure aligns with operating ...
79
Able to execute strategy within
REIT framework
Significant global real estate
footprint – over 1,000 facilities in
67MM...
80
Illustrative North America RM Storage
Annual Economics(1)
(per square foot, except for ROIC)
Investment
Customer acquis...
81
“Enterprise Storage” Compares Favorably
Iron Mountain Self-Storage Industrial
North America annual rental revenue/SF $2...
82
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Same Store NOI Growth
(Historical and ...
83
REIT Aligns with Capital Allocation Strategy
Committed to returning excess capital
to shareholders
Significant stockhol...
84
$MM (except per share data) 2014
FFO $435 - $485
FFO/share(2) $2.27 - $2.53
AFFO $565 - $615
AFFO/share(2) $2.94 - $3.2...
85
NA Leased (47%) Owned (36%) INTL Leased (17%)
Acquisition opportunity of $700MM
to $1B over 10-year timeframe
Solid inv...
86
REIT Supported By Strong Cash Flow
FFO 2014 Pro forma Estimate*
Net income attributable to Iron Mountain (pro forma) $ ...
87
Potential for Broadened Investor Base and
Enhanced Valuation
13.0
14.7
15.0
15.4
16.2
17.6
21.4
16.2
18.6
19.8
11.7x
LR...
88
REIT Conversion Costs In Line with Expectations
$MM 2012 2013
2014
Outlook
Total
Operating Expense $34 $83 $27 -- $37 $...
89
Cash Stock Total
Regular
Dividend
$415 -- $415
E&P $135 $540 $675
Total $550 $540 $1,090
Increase regular dividend and ...
90
Plan to reduce consolidated leverage and cost of financing over time
 No tax advantages related to deductibility of in...
91
How a Successful REIT
Conversion Will Enhance
Value Creation
How Our Investment
Strategy Flows into Value
Creation
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
93
2014 – 2016 Outlook: Key Messages
Maintaining consistent Adjusted OIBDA margins
Well Positioned to Continue
Significant...
94
Strategic Plan Drives Stable Revenue Growth
$2,694
$2,810 –
$2,870
$319
$510 -$550
$13
$40 - $50
$3,026
$200-$265
$135-...
95
Continued Solid Growth Outlook
Enterprise
C$ Growth Rates
2014-2016 Outlook
Total Revenue 2% - 5%
Storage Rental 3% - 5...
96
$919
$50-$75
$20-$45
$20-$30
$1,010 -
$1,070
2013 Base Incremental M&A Speed and Agility 2016 E
Plan Supports Similar G...
97
10%-15% 10% - 20% 20% - 30%+
Incremental Racking
New Facility
Acquisitions
EBOs
Strategic Investments Yield Attractive ...
98
 Improvement in capital efficiency
from 2008 – 2012 driven by
enhanced controls, lower
business investment levels and
...
99
2.0
3.0
4.0
5.0
6.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Excluding
Payouts &
Conv
Costs
Target
Range
Stock...
100
 Committed to returning excess
FCF to shareholders
 $1.9B of cash returned to
shareholders since 2009
through 2013
...
101
Summary
Maintaining consistent Adjusted OIBDA margins
Well Positioned to Continue
Significant Distributions to
Shareho...
102
Questions?
2014 Investor Day
© 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered tradem...
104
Definitions
Funds From Operations, or FFO (NAREIT) and FFO (Normalized)
FFO is a non-GAAP measure commonly used in the...
105
Definitions
Adjusted OIBDA: defined as operating income before depreciation, amortization, intangible impairments, (ga...
106
Global Real Estate Portfolio
Buildings Sq. Ft. Buildings Sq. Ft. Buildings Sq. Ft.
North America 182 19,448 505 31,214...
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2014 i day final master 03.25.14 website version

  1. 1. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Durable Platform and Deliberate Growth Deliver Opportunity 2014 Investor Day
  2. 2. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Welcome Melissa Marsden, SVP Investor Relations 2014 Investor Day 2
  3. 3. 3 Safe Harbor Language and Reconciliation of Non-GAAP Measures Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: 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 our financial performance outlook and shareholder returns in 2014 and through 2016 and statements regarding our operations, economic performance, financial condition, goals, beliefs, future growth strategies, investment objectives, plans and current expectations, such as projected revenues from our emerging market acquisition pipeline, valuation creation and returns associated with our data center business, our proposed conversion to a REIT and the anticipated benefits of such conversion, including the opportunity to create value by acquiring leased space, our potential for a broadened investor base and enhanced valuations and the estimated range of our remaining earnings and profits distribution. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors. When we use words such as "believes," "expects," "anticipates," "estimates" or similar expressions, we are making forward-looking statements. You should not rely upon forward-looking statements except as statements of our present intentions and of our present expectations, which may or may not occur. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. For example, with regard to our proposed conversion to a REIT, even though we continue to pursue conversion to a REIT, we may not be able to convert to a REIT effective January 1, 2014 or at all, our expected benefits of being a REIT may not be realized and the estimated range of our remaining earnings and profits distribution may be incorrect for, among other reasons, the reasons described in Item 1A “Risk Factors - Risks Related to the Proposed REIT Conversion” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2014 and other documents that we file with the SEC from time to time. In addition, important factors that could cause actual results to differ from our other expectations include, among others: (i) the cost to comply with current and future laws, regulations and customer demands relating to privacy issues; (ii) the impact of litigation or disputes that may arise in connection with incidents in which we fail to protect our customers' information; (iii) changes in the price for our storage and information management services relative to the cost of providing such storage and information management services; (iv) changes in customer preferences and demand for our storage and information management services; (v) the adoption of alternative technologies and shifts by our customers to storage of data through non-paper based technologies; (vi) the cost or potential liabilities associated with real estate necessary for our business; (vii) the performance of business partners upon whom we depend for technical assistance or management expertise outside the U.S.; (viii) changes in the political and economic environments in the countries in which our international subsidiaries operate; (ix) claims that our technology violates the intellectual property rights of a third party; (x) changes in the cost of our debt; (xi) the impact of alternative, more attractive investments on dividends; (xii) our ability or inability to complete acquisitions on satisfactory terms and to integrate acquired companies efficiently; (xiii) other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and (xiv) other risks described more fully in our Annual Report on Form 10-K filed with the SEC on February 28, 2014 under “Item 1A. Risk Factors” and other documents that we file with the SEC from time to time. Except as required by law, we undertake 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. Reconciliation of Non-GAAP Measures: Throughout this presentation, Iron Mountain will be discussing Adjusted Operating Income Before Depreciation, Amortization and Intangible Impairments (Adjusted OIBDA), Free Cash Flows Before Acquisitions & Discretionary Investments (FCF) and Adjusted Earnings Per Share from Continuing Operations (Adjusted EPS), which do not conform to accounting principles generally accepted in the United States (GAAP). For additional information and the reconciliation of these measures to the appropriate GAAP measure, as required by Securities and Exchange Commission Regulation G, please access the Supplemental Data link on the Investor Relations page of the Company’s website at www.ironmountain.com.
  4. 4. 4 Today’s Agenda 9:05 Investment Strategy to Deliver Enhanced Returns William Meaney, President and CEO 9:45 Emerging Markets Marc Duale, President International 10:00 Developed Markets – International Patrick Keddy, SVP Western Europe 10:15 Developed Markets – North America John “JT” Tomovcsik, EVP and General Manager, Records and Information Management 10:35 Data Management and Emerging Businesses Harry Ebbighausen, EVP Data Management and Emerging Businesses 10:50 Data Centers Mark Kidd, SVP and General Manager, Data Centers 11:10 Corporate Governance and Risk Management Ernie Cloutier, EVP and General Counsel 11:20 REIT Conversion, Value Creation and Financial Outlook Rod Day, EVP and Chief Financial Officer Jeff Lawrence, SVP and Treasurer Q&A
  5. 5. 5 We Store & Manage Information Assets 74% 18% 8% Records Management Data Management Shredding
  6. 6. 6 Diversified Global Business  $3B annual revenues  >155,000 customers  Serving 95% of Fortune 1000  67MM SF of real estate in >1,000 facilities Compelling Customer Value Proposition  Reduce costs and risks of storing and protecting information assets  Broadest range of footprint and services  Most trusted brand Leading Global Presence 36 Countries 5 Continents
  7. 7. 7 Large & growing  59% of revenues ($1.8B)  4% constant dollar growth GDP correlated & inflation hedged Diversified customer base  No customer >2% of total revenues Low customer turnover (<2% per annum)  Strong value proposition with related services Long average life of a box in storage (~15 yrs)1 Storage Rental Stream is Key Economic Driver (1) Based on annual volume churn rate of ~7%
  8. 8. 8 Durable, Growing Storage Rental Revenue 2013 $1,785 Storage Rental ($MM) 25 Consecutive Years of Storage Rental Growth
  9. 9. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Leveraging The Brand To Extend Our Platform and Deliver Enhanced Returns Bill Meaney, President and CEO 2014 Investor Day
  10. 10. 10 Leveraging the Brand Deliver Opportunity
  11. 11. 11 What You Will Hear Today Iron Mountain is a durable, high-return business that will generate significant excess free cash flow Our strategy extends the durability and stability of our business Successful REIT conversion will enhance stockholder payouts Low-risk platform supports long-term S&P 500 average total returns with upside from Emerging Business Opportunities
  12. 12. 12 Stable Incoming Storage Volume  Consistent 6-7% new volume from existing customers globally  Cut sheet paper demand growth flat, but documents still being produced and stored  Records becoming more archival in nature -4% -5% -3% -6% -3% 0% 3% 6% Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 New Volume From Existing Customers NA Paper Demand 1% -1% 1% -6% -3% 0% 3% 6% 9% 12% 15% Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 New Volume From Existing Customers Global Paper Demand Developed MarketsEmerging Markets Source for paper trends data: Resource Information Systems Inc. (RISI)
  13. 13. 13 Increased Use of Technology Driving Secular Trends Main impact of technology is on service activity  Archival data – Documentation or Proof  Active File – Business process or Query 1.0% 2.8% -5.0% -4.3% $0 $50 $100 $150 $200 $250 $300 $350 2011 2012 2013 Storage Service Healthcare Vertical Storage & Service YoY Growth “Query” 2013 NA RM Storage and Handling Transport Services $0 $500 $1,000 $1,500 File (Active) Box (Archival) Storage Service $MM “Proof”
  14. 14. 14 Overall business trends similar to healthcare vertical trend  Storage rental larger portion of total revenue  Storage rental margins are 2x service margins Various initiatives to offset declines in service revenue Mix Shift Toward Higher Margin Storage Rental 56% 58% 59% 44% 42% 41% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2011 2012 2013 Storage Service Storage and Service Revenue % of total Revenue
  15. 15. 15 Large & Diversified Global Market Opportunity Remains  Substantial un-vended opportunity remains in Developed Markets  ~70% un-vended globally  Emerging Markets beginning first-time outsourcing wave  Diversified end-user market segments Un-Vended Vended Un-Vended Vended $15B Developed Markets $8B Emerging Markets Source: Company estimates
  16. 16. 16 Strategy to Extend Durability of Business Speed and Agility Simplification, Process Automation and Efficiency Developed Markets Drive Profitable Revenue Growth; Grow Tape and Cube Volume Strategic Plan Emerging Markets Expand and Leverage Emerging Businesses Identify, Incubate, Scale or Scrap Organization and Culture Organizational Capabilities, Talent and Processes COREPILLARSENABLERS
  17. 17. 17 Getting More out of Developed Markets  Sales force excellence  Revenue management  Speed & agility  Acquisitions Stable Base Supports Moderate Growth with Low Risk $2,694 $2,810- $2,870 $1,047 $1,100- $1,150 2013 Actual 2016 Targets Developed Market Targets ($MM) Revenue Adjusted OIBDA 2013 Adjusted OIBDA excludes restructuring charges
  18. 18. 18 Capturing Opportunity in Emerging Markets  Investing to drive leadership in key emerging markets  Key drivers of emerging market growth  First wave of outsourcing  Enterprise customers demand global service  Benefits to having consistent standards and records management programs across the globe Significant Opportunity for Enhanced Growth and Returns $319 $510-$550 $65 $100- $150 2013 Actual 2016 Targets Revenue Adjusted OIBDA 2013 Adjusted OIBDA excludes restructuring charges Emerging Market Targets ($MM)
  19. 19. 19  Developed Markets  Optimize storage growth opportunities while maintaining attractive returns  Emerging Markets  Invest to build a strong leadership position  Market leadership drives superior returns as markets develop Strategic Focus: Investing for Profitable Growth Average Performance Net cube growth 7% Adj. OIBDA 30%-35% ROIC ~12% Net cube growth 0% Adj. OIBDA 38%-42% ROIC ~14% Net cube growth 5% Adj. OIBDA 24%- 26% ROIC ~9% Higher Growth Lower Growth Market MaturityLowerHigher MarketLeadership Net cube growth 12% Adj. OIBDA 6%- 8% ROIC ~1% ROIC Excludes Corporate and International head office
  20. 20. 20 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Emerging Businesess Opportunities Data Management - Storage Records Management - Storage Emerging Business Opportunities  Demonstrated ability to leverage customer relationships and platform  EBOs are adjacent to the core but sufficiently different – large enough to be a meaningful contributor to growth  Identifying and scaling new businesses – each potentially representing 3% - 5% of total revenues and exceeding hurdle rates Leveraging Brand and Core Capabilities in New Ways History of Sustainable Growth Emerging Business Opportunities
  21. 21. 21 Aligning the Organization for Success  Organizing for profitable growth informed by markets and customers in core business  Enabling emerging businesses to thrive  Simplifying the organization  Leveraging global scale where practical  Enhancing operating infrastructure
  22. 22. 22 New Organization Structure Finance Strategy & Talent Legal, Risk & Security Global Support Services Commercial / CMO Records & Information Management NA Data Management NA International P&L Emerging Businesses CEO
  23. 23. 23 Strategic Plan Drives Solid Revenue Growth $3,026 $3,360- $3,470 $2,200 $2,400 $2,600 $2,800 $3,000 $3,200 $3,400 $3,600 2013 Base Incremental M&A 2016 E ($MM) $200 - $265 $135 - $175
  24. 24. 24 Low-risk, Moderate Growth with Attractive Yield Driving Total Shareholder Returns - projected to be between 8% to 9% $919 $50-$75 $20-$45 $20-$30 $1,010 - $1,070 Adj. OIBDA 2013 Base Incremental M&A Speed and Agility Adj. OIBDA 2016 E 2013 excludes restructuring charges ROIC 9.7% 9% - 10% Avg. Inv. Capital ~$5.5B ~$6.3B ($MM)
  25. 25. 25 Generating Consistent Returns with Upside Potential Deliver Opportunity
  26. 26. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Emerging Markets Marc Duale, President International 2014 Investor Day
  27. 27. 27 Attractive, growing International business  $846MM in revenues for 2013  $474MM in storage rental for 2013 10% C$ storage rental growth for 2013  Storage margin ~70%  Service margin ~25% Network supports North American-based global accounts  ~60 of Top 100 US customers are active International customers Large, Growing International Portfolio 28% of Consolidated Revenues Countries: 34 Facilities: 354 Customers: ~30,000
  28. 28. 28 Achieved 3-year profitability and ROIC goals  700 bps Adjusted OIBDA margin improvement  400 bps ROIC improvement  All Developed Market returns above hurdle rate Strong exit trajectory to support transition to profitable growth  Team with proven execution culture in place  Core business focus driving strong performance International Strategic Plan: “Mission Accomplished” $725 $846 2010* 2013 $134 $210 18% 25% 5% 9% 2010* 2013** Adj. OIBDA Adj. OIBDA % ROIC % Adj. OIBDA ($MM)Revenue ($MM) *Reflect figures prior to the disposition of our operations in Italy and New Zealand **Excludes $3.7 million of restructuring charges +5% CAGR
  29. 29. 29 Growing International Portfolio with Attractive Returns 72% 18% 7% 3% NA Europe Latin America Asia Pac 7% 10% International Emerging Markets International Developed Markets Total International Portfolio = 9% ROIC (after-tax) % of Global Revenues 2013 Consolidated After-Tax ROIC* *Excludes International head office, except for total International
  30. 30. 30 Build high performance leadership teams Drive organic growth  Continued strong storage growth  Enhanced retention and account management  Pricing discipline and leadership Invest in real estate and infrastructure  Continue to improve facility quality  Innovative capacity solutions Rapid execution of rich M&A pipeline  Build relative market share  Drive a quick and routine integration process Investing for Profitable Growth: Emerging Markets Central Europe Poland Mexico Peru Chile Colombia Turkey Brazil Argentina India Russia China Higher Growth Lower Growth Market MaturityLowerHigher MarketLeadership
  31. 31. 31 M&A Key Driver of Emerging Market Leadership Strategy 10% 16% 2013 2016 E $319 2013 2016 E Base Acquisitions $100- $120 $410- $430 $510-$550 Emerging Market Revenue Emerging Market % Global Revenues
  32. 32. 32  $500 MM+ revenue pipeline  Diversified portfolio of targets  Streamlined acquisition process M&A Pipeline is Strong and Execution Well Underway $160 $50 $145 $55 $85 $30 IMLA EMEA Asia New Territories Current Territories Projected Annualized Revenues from Emerging Market M&A Pipeline
  33. 33. 33 $1 $13 2011 2014 E 1% 15% $51 $87 2011 2014 E • 2 acquisitions in last 18 months • Revenue nearly doubled • 3,000 new customers • No business disruption • No major customer loss • 12 legal entities integrated • On IRM systems within 8 months • 20% reduction in headcount • Synergies 2.5x deal model • Significant portfolio consolidation benefit in FY16/17 Strong Integration Process and Solid Track Record  Standard integration strategy and process leveraging global know-how  Protect what we buy and deliver accelerated value quickly and fully  Robust deal model and review process Brazil Snapshot Revenue ($MM) Adj. OIBDA %
  34. 34. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Developed Markets – International Patrick Keddy, SVP Western Europe 2014 Investor Day 34
  35. 35. 35 Similar Business Fundamentals Globally 81% 10% 6% 3% NA UKI Continental Western Europe AUS 10% 13% International Developed Markets North America % of Developed Market Revenues 2013 Consolidated After-Tax ROIC* *Excludes International head office and corporate overhead
  36. 36. 36  Sustained growth in storage volumes  Revenue management  Sales productivity efficiency and effectiveness  Customer segmentation and value differentiation  Proactive customer retention and experience Strategy to Sustain Storage Revenue Growth $293 $313 0 50 100 150 200 250 300 350 2013 2016E Storage Revenues ($MM) All figures at C$ rate. 2016 assumes no acquisition activity beyond 2013
  37. 37. 37 Adj. OIBDA ($MM)Continuous improvement in operational efficiency  Storage network consolidation and utilization  Warehouse and transport optimization  Productivity and process improvement Continuous improvement in support- cost efficiency  Flat structures, effective/efficient use of resources  Opportunities to outsource/ off-shore and variablize costs  Working capital efficiency Strategy to Maintain Attractive Returns $153 $170 28% 30% -30% -20% -10% 0% 10% 20% 30% 40% 50 70 90 110 130 150 170 190 2013 2016E Adj. OIBDA Adj. OIBDA % All figures at C$ rate. 2013 excludes restructuring charges. 2016 assumes no acquisition activity beyond 2013
  38. 38. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Developed Markets – North America John “JT” Tomovcsik, EVP and General Manager, Records and Information Management 2014 Investor Day
  39. 39. 39 $2.2B in annual revenues  $1.3B in annual storage rental Unparalleled secure logistics platform  Secure chain of custody  51 MM SF real estate network Continual optimization through strong execution  Investments in business process re- engineering to continue to optimize work streams High-return business  Delivers high profits and strong cash flows North America Overview North America Markets: 85 Facilities: 687 Customers: ~125,000
  40. 40. 40 C$ Storage Rental Growth Invest to sustain high-return platform  Grow storage rental as a priority  Drive strong cash flow  Maintain margins and capital efficiency North America Delivers Sustained Growth 0% 1% 2% 3% 4% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Sustain 1.5% to 2.5% Storage Rental Growth
  41. 41. 41 Records and Information Management (RIM) $1.8B in total NA RIM revenues  $1.4B in Records Management (RM)  $1B in storage rental revenue  $400MM in service revenue RIM is Largest Business Segment Records Management Secure Shredding Document Management Solutions Fulfillment Services Intellectual Property Management Consulting RIM – Revenue by Product Line
  42. 42. 42 Consistent Records Management Volume Growth 6.0% 6.1% 6.1% 6.1% 5.9% 5.6% 5.6% 5.5% 1.0% 0.9% 0.9% 0.9% 1.0% 1.2% 1.3% 1.3% 0.2% 0.1% 0.1% 0.1% 0.2% 0.2% 1.1% 4.0% -7.4% -7.6% -7.5% -7.3% -7.3% -7.2% -7.3% -7.1% -0.2% -0.5% -0.4% -0.2% -0.2% -0.2% 0.7% 3.7% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Organic New Sales Acquisitions Outperm/Terms & Destructions North America Year-Over-Year Net Volume Growth Rates(1): (1) Represents year-over-year change in volume as of the end of each period presented. The quarterly percentages are calculated by dividing the trailing four quarters’ total activity by the ending balance of the same prior year period. Includes acquisitions of customers and businesses Net Change
  43. 43. 43 RIM Market ~$8 B Opportunity within our Customer Base  Addressable and targeted  Commercial segments: 303MM CF  National and vertical segments: 205MM CF Large Market Opportunity Remains Un-vended Private Sector Government Vended Source: Company commissioned study conducted by Bain Consulting Source: Company estimates for records management, data protection and shredding
  44. 44. 44 RIM Business Unit Eastern US Region Western US Region Canada Other Sales Business Office Operations Support Corporate Functions Territories (8) Territories (8) Territories (3) P&L General Manager Records & Information Management
  45. 45. 45 2012 2013 RM Bookings Total Pipeline 2012 2013 RM Bookings Total Pipeline  Focus on top tier customers in each vertical  Solutions based offering for top 100-200 customers  Industry expertise sales and account management resources  Knowledge shared with territory sales force serving remaining customers 2012 2013 RM Bookings Total Pipeline Healthcare Legal Government Vertical Focus Allows More Targeted Solutions and Drives Growth
  46. 46. 46 Sales Force Excellence Initiative Five Major Objectives Bottom-Up Market Database Accountability and Best Practices Transition to “Hunter” model Institutionalize account strategy and planning Improve sales representative efficiency and effectiveness Improve solutions sales training Market intelligence capability 1 2 3 4 5
  47. 47. 47  Long-term real estate commitment  Broaden service capability and establish operations in markets offering strong long-term growth prospects  Synergized returns: 11%+  Recent Example:  Purchase price: $2.6MM  Revenue: $930K  Synergized Adj. OIBDA: $330K  Integration/CapEx: $300K Acquisition Fragmented Market with Further Consolidation Potential  Focus on capacity utilization; no new real estate  Small, profitable acquisition of inventory and customers  Adj. OIBDA margins > 60% yr. 2  Synergized returns: ~17%  Recent Example:  Purchase price: $850K  Revenue: $290K  Synergized Adj. OIBDA: $190K  Integration/CapEx: $250K Customer Acquisition  Opportunistic  Integration proceeding on course:  Revenue just below plan but Adj. OIBDA ahead of plan  Deal details  Purchase Price: $190MM  Revenue: $50-$55MM  Synergized Adj. OIBDA: $30MM  Integration/CapEx: $35MM  Synergized returns:10%+ Cornerstone
  48. 48. 48  Transportation Efficiency  Co-sourcing specific routine operational functions  Consolidation - Imaging Center Footprint Optimizing Cost of Sales and Overhead
  49. 49. 49 $2,694 $2,810- $2,870 $1,047 $1,100- $1,150 2013 Actual 2016 Targets Revenue Adjusted OIBDA Developed Market Targets ($MM) Driving profitable growth Enhanced cube volume growth  Sales force excellence  Acquisitions Speed & Agility drives profitability Getting More out of Global Developed Markets Stable Base Supports Moderate Growth with Low Risk 2013 Adj. OIBDA excludes restructuring charges
  50. 50. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Data Management Harry Ebbighausen, EVP Data Management and Emerging Businesses 2014 Investor Day
  51. 51. 51 Tape Vaulting Other* Sizable North American Data Management Business (1) Note: Insert note text ~$400MM in revenue 18% of Consolidated North America Revenues 75 Markets 90+ Facilities ~30,000 Customers *Other includes Entertainment Services, Digital Records Center Medical Imaging and Tech Services 59MM tapes stored (DPUs) 3MM transportation stops in 2013 1.2MM DPUs volume growth in 2013
  52. 52. 52 The Role of Tape is Changing Backup of Last Resort Data Archiving (Cold Storage) Long-term Retention for Compliance and Discovery Hybrid Disk-Tape-Cloud Solution Backup Archive Mainstream Innovators Primary Backup
  53. 53. 53 Tape in Data Center What role will tape play in enterprise data protection strategies? 85% Used as part of a hybrid backup strategy that includes other storage technologies (e.g. cloud and disk) 22% Used for long-term retention to meet regulatory requirements 10% Used for cold storage of inactive data 10% Other What characteristics will most contribute to tape’s continued use in enterprise data protection? 33% Low total cost of ownership 24% High capacity 14% Reliability 14% Long-term retention capabilities 12% New tape technologies (LTO, LTFS, Etc.) 3% Other Source: Company End-User Research
  54. 54. 54 Tape Continues to be Key Element of Data Storage 2-4 Orders of magnitude more reliable than disk drives NERSC 15 Tape storage 15x less expensive than alternatives Clipper Group 78 Percentage of enterprises that use tape for backup Gartner
  55. 55. 55 Our Solutions Support Ongoing Need Problems Addressed Products Solutions - Backup - Recovery - Server backup - PC backup - Business continuity - Resiliency Tape services Long-term storage - Tape services - Archive Tape Management - Restoration services - Medical image archive - M&E archive - Compliance - Cost - Colocation - Managed services - Compliance - Green initiatives - Asset disposition - Media destruction Backup Disaster Recovery Archive Datacenter Destruction
  56. 56. 56 Helps companies manage data from legacy systems Optimal data protection and cost savings  Data is off-line to protect from virus attacks and data corruption Allows data to be archived and restored without the additional cost of maintaining legacy systems software and tape backup subsystems  Provides encryption of legacy data for compliance purposes and protects it from inadvertent disclosures  Frees up valuable data center space Archival Tape Solutions Targeted to Existing Customers
  57. 57. 57 Securely Manage End-of-Life IT Assets Destroy, recycle or repurpose various IT equipment All types of IT assets  Tapes  Laptops  Office equipment  Hard drives  Mobile devices Reliable Environmentally friendly Secure Customer Relationships Support Adjacent Businesses
  58. 58. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Harry Ebbighausen, EVP Data Management and Emerging Businesses 2014 Investor Day Emerging Businesses
  59. 59. 59 EBO team incubates and pilots ideas and manages handoff to business EBOs  Large enough to move the dial in 3 to 5 years – scalable to $100 MM+  Have significant long-term growth and market leadership potential  Are sufficiently different from the core business Core Incremental Opportunities  “Value enhancers” for selling more of the core – packaging existing solutions, product extensions or products from partners  Potential to significantly augment sales productivity Ensuring Promising Opportunities Are Supported
  60. 60. 60 How We Think About Emerging Businesses Markets to be Created Current IRM Markets Existing Markets but New to IRM MARKETS CAPABILITIES Existing Stretched New 1. Core Incremental Innovation 2. EBO Development Avoiding for now as too risky “Traditional” product and service stage-gate development process Corporate business development process that leverages innovation thinking and lean start -up methodology
  61. 61. 61  Meaningful physical storage component for low-velocity assets  Strong need to manage meta- data about the physical asset  Benefits from IRM brand’s tenets such as security and trust  Existing market with acquisitions gets meaningful scale in 3-5 years  In a trend-favored industry Our Criteria: Emerging Business Opportunities
  62. 62. 62 One We Scrapped  Co-developed solution with Crossroads’ StrongBox solution for lower-cost data storage  Technology was on-premise solution vs. services solution  Could become enabling technology, but customer adoption still in early stages  Not meeting return hurdle, so halted development One We Will Scale  Focused on solutions where there is greater near-term market opportunity  Data center experience dates back to 1986 in underground  Closer fit with EBO objectives, customer-driven with sales force synergies  Attractive returns Not All EBOs Are Created Equal Willing to “Fail Fast” and Redeploy Resources as Warranted
  63. 63. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Data Centers Mark Kidd, SVP and General Manager, Data Centers
  64. 64. 64 We know more about our customers’ data centers than anyone Customers seek our help due to long relationship of trust, compliance and security We’ve been in the industry for more than 15 years Well Positioned to Succeed in Data Center Market We Service Over 30,000 Data Center Locations in North America
  65. 65. 65 The Opportunity is Big Multi–Tenant Colocation Capturing 5% Market Share of New Market Growth Adds ~1% to IRM Growth $8.4 $9.7 $11.2 $12.9 $14.8 2012 2013 2014 2015 2016 15.4% 2012-2016 CAGR Source: 451 Research North American MTDC Market Revenue Projections ($B) Wholesale Retail Cloud Managed Services $10B+ $5B+ $5B+
  66. 66. 66 Hiring team with deep experience Minimizing capital at risk Avoiding markets where there is supply / demand imbalance Walking Before we Run in 2013-2014 >100 years of data center experience in a 15-year old industry
  67. 67. 67 2014 Capital Deployment Focused in Current Footprint Location Phase Timeframe KW SF Current Planned Investment Boyers, PA (Underground) Pre - 2013 2008-2013 4,100 85,000 2013 Dec. 2013 500 6,000 2014 Oct. 2014 1,500 20,000 ~$15 - $20MM Kansas City Legacy 1,400 15,000 Boston Phase 1 May 2014 1,200 21,000 ~$15MM
  68. 68. 68 Cost to Build and Fill Inventory In-line with Competition  Slightly higher construction costs  Lower selling costs  Lower financing/ carry costs $/SF $/KW Benchmark(1) IRM(2) Benchmark(1) IRM(2) Land & enabled shell $158 $240 $2,827 $4,065 Mechanical, electrical & other 407 450 7,310 7,130 Construction Subtotal $565 $690 $10,137 $11,195 Capitalized interest(3) 26 20 468 371 Capitalized sales expense(4) 53 17 945 270 Total costs $644 $727 $11,550 $11,836 (1) Benchmark includes publically available construction cost information plus land assumed at $200k / acre (2) IRM costs are average current projects underway in Northeast corridor (3) Capitalized interest includes cost of each module and shell investments until stabilized (4) Capitalized sales expense includes commissions at ~15% of annual revenue and 4% contract value for benchmark Fill rate = 1MW/Yr.
  69. 69. 69  Stabilized investments through 2014 will drive $100MM in value creation  Delivers pre-tax un-levered returns of 15%+  ROIC 10% - 14% Compelling Returns from Capital Investment Illustrative Value Creation and Estimated Stabilized Returns Post-2014 ($ MM) Revenue $27 Adjusted OIBDA ~$15 NOI ~$16 Capital invested ~$100 Data center cap rate 7.5% - 8.5% Implied value $185 - $215 Implied Adjusted OIBDA multiple ~13x Implied value creation $85 - $115 Adjusted OIBDA reflects stabilized SG&A expenses
  70. 70. 70 Big opportunity through sales channel to accelerate growth – existing and new markets in NA Capacity investment decisions a function of returns, cost and speed to market Compelling international growth markets where we have strong customer base Future Acceleration Well positioned to pursue large opportunity with disciplined approach
  71. 71. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Corporate Governance and Risk Management Ernie Cloutier, EVP and General Counsel 2014 Investor Day 71
  72. 72. 72 A Disciplined Approach A brand built upon Security and Compliance A strong employee culture committed to:  Earning customer trust and protecting customer assets  Helping customers manage information risks and meet regulatory requirements Utilizing our scale to implement industry leading standards Applying a continuous improvement philosophy to risk management and corporate governance
  73. 73. 73 Comprehensive Risk Management for Emerging Markets We assess and manage a range of potential risks, including those unique to each country We partner with third parties to study and develop industry-leading risk management strategies A strong compliance program  Built around the company’s core values  Supported by a strong ethical culture and tone at the top Acquisitions and joint ventures  Building relationships to know the businesses before we acquire  Execute due diligence best practices  Integration, training and education, and on-going monitoring
  74. 74. 74 Track Record of Good Corporate Governance Governance best practices  Majority voting standard for director elections  Anti-hedging policy for officers and directors  Pay for performance philosophy; ROIC measurement criteria  Officer and director stock ownership guidelines  Close oversight of enterprise risk management Board composition and related policies reflect good governance  11 independent directors with core business, international and REIT experience  All directors stand for election annually  Separation of Board Chair (Independent) and CEO roles  Board committees consist exclusively of independent directors  Policies ensure low potential for conflicts of interest
  75. 75. 75 Additional REIT Governance Controls and Practices Board and management oversight of REIT requirements Intend to implement REIT charter with customary provisions through merger to ensure compliance  5 individuals under 50% ownership limitation  Affiliated income rule REIT charter provisions will replace the stockholder rights plan implemented to protect 2014 tax benefit for stockholders If successful in converting to a REIT, additional governance measures will be adopted
  76. 76. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 REIT Value Creation and Financial Outlook Rod Day, EVP and Chief Financial Officer Jeff Lawrence, SVP and Treasurer 2014 Investor Day 76
  77. 77. 77 How a Successful REIT Conversion Will Enhance Value Creation How Our Investment Strategy Flows into Value Creation
  78. 78. 78 REIT Conversion Began operating in manner consistent with REIT effective 1/1/2014 REIT structure aligns with operating strategy Consistent with capital allocation approach Significant benefits from REIT structure Refined dividend and E&P estimates
  79. 79. 79 Able to execute strategy within REIT framework Significant global real estate footprint – over 1,000 facilities in 67MM square feet worldwide Successfully structured the business to deliver services and aligned international businesses within structure REIT Structure Aligns with Operating Strategy
  80. 80. 80 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 Income Storage rental revenue $ 27 Direct operating costs (3) Allocated field overhead (3) Storage rental income $ 21 Pre-Tax Storage Rental ROIC(2) ~14% High storage rental revenues per square foot Storage rental value creation drivers  Facility design expertise  Network utilization  Portfolio management of multiple tenants  Related services Strategic Plan Supports Growth in High-Return Storage Rental Businesses (1) Reflects average portfolio pricing and assumes an owned facility (2) Includes maintenance CapEx, assumed at 2% of revenue
  81. 81. 81 “Enterprise Storage” Compares Favorably Iron Mountain Self-Storage Industrial North America annual rental revenue/SF $27.00 $13.80 $5.50 Tenant Improvements/SF N/A N/A $1.96 Recurring Capex(1) ~7% 5.3% 12% Average lease term Large customers: 3 Yrs. Small customers: 1 Yr. Month-to-Month ~4-6 Yrs. Customer retention ~98% ~85% ~75% Customer concentration Very Low Very Low Low Customer type Business Consumer Business Non-Real Estate %(2) 30% 20% 10% Stabilized Occupancy (building & racking utilization) Building: 80% to 85% Racking: 90% to 95% 90% 93% Operating Margin(3) Storage: 70% - 75% 68% 70% (1) IRM non-growth CapEx as a percentage of total revenue. Self-Storage and Industrial recurring CapEx as a percentage of NOI. Excludes leasing commissions. (2) Non-Real Estate % for IRM is as a % of Adj. OIBDA. Self-Storage and Industrial are as a % of Assets. (3) Operating margin for IRM is storage gross margin Source: Company estimates. Benchmark data provided by Green Street Advisors
  82. 82. 82 -6% -4% -2% 0% 2% 4% 6% 8% 10% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Same Store NOI Growth (Historical and Estimated) Industrial average Self-storage average IRM storage rental internal growth Compared with industrial and self- storage REITs, storage rental has:  Lower volatility – predictable storage rental growth has weathered all storms Strong recurring earnings Excellent dividend coverage Storage Rental Revenue is Stable Throughout Cycles Source: Benchmark data provided by Green Street Advisors Midpoint of expected 2014-2016 range
  83. 83. 83 REIT Aligns with Capital Allocation Strategy Committed to returning excess capital to shareholders Significant stockholder benefits  Single level of US tax  Efficient structure to repatriate foreign storage rental income  Disciplined mechanism for capital allocation The right tool for maximizing total returns to stockholders  REIT structure drives higher dividends Strong cash flows support dividend coverage
  84. 84. 84 $MM (except per share data) 2014 FFO $435 - $485 FFO/share(2) $2.27 - $2.53 AFFO $565 - $615 AFFO/share(2) $2.94 - $3.20 Dividends(3) $400 - $430 Dividends/share(2) $2.08 - $2.24 Pro Forma REIT Metrics(1) (For illustrative purposes only) Higher dividends over time supported by:  US federal and state income tax savings  Higher distributable income due to lower tax vs. book D&A  Both US and international storage rental (QRS) income Potential to create value and reduce financing cost through acquisition of select leased facilities Potential to expand investor base through higher yield and attractive business characteristics REIT Will Provide Significant Stockholder Benefits (1) Excludes $150MM cash portion of the E&P distribution (2) Based on 192MM shares outstanding (3) Includes ~$70MM benefit from book / tax difference for depreciation associated with racking
  85. 85. 85 NA Leased (47%) Owned (36%) INTL Leased (17%) Acquisition opportunity of $700MM to $1B over 10-year timeframe Solid investment return potential Reduces borrowing costs over time Supports REIT Asset Test Higher real estate residual value Opportunity to Create Value by Acquiring Leased Space Potential $2.5B - $3.0B Purchase Universe
  86. 86. 86 REIT Supported By Strong Cash Flow FFO 2014 Pro forma Estimate* Net income attributable to Iron Mountain (pro forma) $ 250 Real estate depreciation 180 (Gain) Loss on disposal/write-down of PP&E ---- FFO (NAREIT) $ 430 REIT Costs 30 Normalized FFO (Iron Mountain) $ 460 AFFO 2014 Pro forma Estimate* Normalized FFO (Iron Mountain) $ 460 Non-real estate depreciation 120 Amortization expense (including deferred financing costs) 65 Rent normalization 5 Stock option compensation expense 30 Business support CapEx (maintenance) (90) AFFO $ 590 *Metrics represent approximate midpoint of the estimated range ($MM)
  87. 87. 87 Potential for Broadened Investor Base and Enhanced Valuation 13.0 14.7 15.0 15.4 16.2 17.6 21.4 16.2 18.6 19.8 11.7x LRY DCT FR PSB DRE EGP PLD EXR PSA CUBE IRM Price-to-2014 Pro Forma FFO 5.8% 3.8% 2.0% 4.5% 3.6% 3.0% 3.8% 3.3% 2.5% 7.7% LRY DCT FR PSB DRE EGP PLD EXR PSA CUBE IRM* Pro Forma Current Dividend Yield *Based on a pro forma 2014 dividend of $2.16 per share, and 192MM shares outstanding and a stock price of $27.77 as of12/2/2013. REIT pricing as of 12/2/2013 Source: Company estimates. Benchmark data provided by Green Street Advisors 16.2 20.4 19.9 22.4 18.8 22.0 27.6 20.3 21.2 18.5 9.1x LRY DCT FR PSB DRE EGP PLD EXR PSA CUBE IRM Price-to-2014 Pro Forma AFFO SELF-STORAGEINDUSTRIAL
  88. 88. 88 REIT Conversion Costs In Line with Expectations $MM 2012 2013 2014 Outlook Total Operating Expense $34 $83 $27 -- $37 $145 - $155 Capital Expense $13 $23 $5 -- $10 $40 - $45 Total $47 $106 $32 -- $47 $185 - $200 Tax Payment Related to D&A Recapture $80 $53 $77 -- $92 $210 - $225 Annual on-going REIT compliance expenses would be $10-$15 million
  89. 89. 89 Cash Stock Total Regular Dividend $415 -- $415 E&P $135 $540 $675 Total $550 $540 $1,090 Increase regular dividend and distribute remaining E&P purge by year end, assuming 2014 REIT conversion  Regular dividend: $400MM - $430MM  E&P purge:  $600MM - $750MM  20% cash / 80% stock likely Refined Dividend and E&P Estimates 2014 Expected Payouts (midpoints of ranges)
  90. 90. 90 Plan to reduce consolidated leverage and cost of financing over time  No tax advantages related to deductibility of interest expense in US QRS Naturally leads to shift toward more equity financing to support real estate investment and lower leverage over time Several options available to affect this shift:  At-The-Market (ATM) equity drawdown programs  Opportunistic follow-on equity offerings  Dividend Reinvestment Program (DRIP) Expected Shift in Debt/Equity as a REIT Over Time
  91. 91. 91 How a Successful REIT Conversion Will Enhance Value Creation How Our Investment Strategy Flows into Value Creation
  92. 92. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 2014–2016 Outlook 2014 Investor Day
  93. 93. 93 2014 – 2016 Outlook: Key Messages Maintaining consistent Adjusted OIBDA margins Well Positioned to Continue Significant Distributions to Shareholders
  94. 94. 94 Strategic Plan Drives Stable Revenue Growth $2,694 $2,810 – $2,870 $319 $510 -$550 $13 $40 - $50 $3,026 $200-$265 $135-$175 $3,360 - 3,470 $(10,000) $(8,000) $(6,000) $(4,000) $(2,000) $- $2,000 $4,000 $6,000 2200 2400 2600 2800 3000 3200 3400 3600 2013 Base Incremental M&A 2016 E Emerging Businesses - Data Centers Emerging Markets Developed Markets 51.3% 18.4% 1.8% ($MM) CAGR
  95. 95. 95 Continued Solid Growth Outlook Enterprise C$ Growth Rates 2014-2016 Outlook Total Revenue 2% - 5% Storage Rental 3% - 5% Services 1% - 3% Developed Markets C$ Growth Rates 2014-2016 Outlook Total Revenue 0% - 2% Storage Rental 1% - 3% Services (1)% - 1% Emerging Markets C$ Growth Rates 2014-2016 Outlook Total Revenue 12% - 18% Storage Rental 15% - 20% Services 10% - 15%
  96. 96. 96 $919 $50-$75 $20-$45 $20-$30 $1,010 - $1,070 2013 Base Incremental M&A Speed and Agility 2016 E Plan Supports Similar Growth in Adjusted OIBDA Excludes restructuring charges ($MM)
  97. 97. 97 10%-15% 10% - 20% 20% - 30%+ Incremental Racking New Facility Acquisitions EBOs Strategic Investments Yield Attractive Returns Average After-tax Returns for Key Value-Driving Activities
  98. 98. 98  Improvement in capital efficiency from 2008 – 2012 driven by enhanced controls, lower business investment levels and M&A activity  Capital investment to drive future Adj. OIBDA growth  Expect capital expenditures for 2014 – 2016 to be consistent with 2013 levels Capital Spending to Support Strategic Plan 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Business Growth Business Support Operational Efficiency & Other Capital Expenditures (ex RE and REIT CapEx) as a % of Revenues *Excludes capital expenditures related to headquarter move 6%-8%
  99. 99. 99 2.0 3.0 4.0 5.0 6.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Excluding Payouts & Conv Costs Target Range Stockholder Payouts, REIT Costs & Distributions Have Temporarily Increased Leverage $MM 2010 - 11 2012 2013 2014 E Total Share Repurchases $1,097 $38 --- --- $1,135 Quarterly Dividends $211 $179 $207 $400 - $430 $997 - $1,027 E&P Dist. --- $140 --- $120 - $150 $260 - $290 Total Cash $1,308 $357 $207 $520 - $580 $2,392-$2,452 E&P Stock Dist. --- $560 --- $480 - $600 $1,040-$1,160 Total Value Distributed to Shareholders $1,308 $917 $207 $1,000-$1,180 $3,432-$3,612 Other Expenditures (1) --- $127 $159 $109-$139 2010 - 2014 Estimated Distributions ($MM) Assuming REIT Conversion (1) Represents REIT costs (2) As defined under company’s senior credit facility, assumes no equity issuances Net Lease Adjusted Leverage Ratio(2) Assuming REIT Conversion
  100. 100. 100  Committed to returning excess FCF to shareholders  $1.9B of cash returned to shareholders since 2009 through 2013  Plan drives high dividend payout  Growth CapEx generates high, predictable returns  Robust pipeline of attractive investment opportunities – acquisitions & real estate 2016 Potential Cash Available for Investment $MM Adjusted OIBDA ~$1,040 Add: Other Non-Cash Items & Adjustments Borrowings to Maintain Leverage at 5.0X ~$40 ~100 Less: Interest Cash Taxes Maintenance CapEx ~$285 ~$165 ~$90 $640 Core Growth & Other CapEx / CAC ~$190 Cash Available for Discretionary Investments $450 Strong Cash Flow Supports Capital Allocation Strategy Real Estate ~$20MM Core Acquisitions ~$150MM Shareholder Payouts* Current Dividends ~$250 MM Figures represent midpoint of estimated range *Assumes 196 MM shares outstanding, 10.5x enterprise multiple and ~4% yield
  101. 101. 101 Summary Maintaining consistent Adjusted OIBDA margins Well Positioned to Continue Significant Distributions to Shareholders
  102. 102. 102 Questions? 2014 Investor Day
  103. 103. © 2013 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated. All other trademarks and registered trademarks are the property of their respective owners. March 26, 2014 Appendix 2014 Investor Day
  104. 104. 104 Definitions Funds From Operations, or FFO (NAREIT) and FFO (Normalized) FFO is a non-GAAP measure commonly used in the real estate industry. Although the National Association of Real Estate Investment Trusts (“NAREIT”) has published a definition of FFO, modifications to the NAREIT calculation of FFO are common among REITs as companies seek to provide financial measures that meaningfully reflect their business. Our most directly comparable GAAP measure to FFO is net income attributable to Iron Mountain. Net income assumes that the value of real estate assets diminishes predictably over time as reflected through depreciation and amortization expense. The value of real estate assets fluctuates due to market conditions, and the company believes FFO more accurately reflects the value of its real estate assets. FFO is defined by NAREIT as net income excluding gains and losses on the sale or write-down of real estate assets and depreciation on real estate assets. FFO (Normalized) excludes other non-recurring or unusual items that the company believes do not accurately reflect its underlying operations. FFO (Normalized) is defined as FFO (NAREIT) excluding intangible impairment charges, other income and expense (including foreign exchange gains and losses), income and losses from discontinued operations, provision or benefit from deferred taxes and REIT costs. Adjusted Funds From Operations, or AFFO: defined as FFO as adjusted excluding non-cash rent expense or income plus depreciation on non-real estate assets, amortization expense (including amortization of deferred financing costs) and stock option compensation expense less maintenance capital expenditures. 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 shareholders and voluntary prepayments of indebtedness.
  105. 105. 105 Definitions Adjusted OIBDA: defined as operating income before depreciation, amortization, intangible impairments, (gain) loss on disposal/write-down of property, plant and equipment, net, and REIT Costs Free Cash Flow (FCF): FCF is defined as Cash Flows from Operating Activities from continuing operations less capital expenditures (excluding real estate and capital expenditures associated with the REIT conversion), net of proceeds from the sales of property and equipment and other, net, and additions to customer relationships and acquisition costs. REIT costs are also excluded from FCF. ROIC: defined as net operating profit after tax (NOPAT) plus depreciation & amortization less non-growth CapEx divided by Average Invested Capital. NOPAT is defined as Adjusted OIBDA less depreciation & amortization, at the structural tax rate of approximately 40% for Enterprise, but varies by region. Average Invested Capital is defined as the average of interest bearing debt plus equity less cash plus accumulated depreciation on racking. Total Shareholder Return (TSR): TSR – Total Shareholder Return is calculated by taking the total dividend yield plus stock appreciation of a three year period (assuming dividends are reinvested at the current year TSR rate using a mid-year convention) divided by the Base Share Price and annualized for the three year period. Base Share Price is approximately $29 and assumes constant multiple of 10.5x. Synergized Returns: Synergized returns are calculated on an un-levered, pre-tax basis by taking synergized Adjusted OIBDA and dividing it by purchase price as well as capital and operational integration costs.
  106. 106. 106 Global Real Estate Portfolio Buildings Sq. Ft. Buildings Sq. Ft. Buildings Sq. Ft. North America 182 19,448 505 31,214 687 50,662 Europe 53 2,676 195 6,820 248 9,496 Latin America 33 1,912 56 2,768 89 4,680 Asia Pacific 1 31 48 2,058 49 2,089 International 87 4,619 299 11,646 386 16,265 Total 269 24,067 804 42,860 1,073 66,927 TotalLeased Facilities As of 12/31/2013 Owned Facilities
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