Important disclosures appear on the last page of this report.

The Henry Fund

Henry B. Tippie College of Business Mark Newman [mark-newman@uiowa.edu] Iron Mountain, Inc. (IRM) November 21, 2019

REIT – Industrials Stock Rating No Action

Investment Thesis Target Price $35-40 We issue a No Action recommendation for Iron Mountain with a price target of $37.35. This neutral stance is based on sticky customer relationships, expansion into emerging markets, but also a consumer shift into cloud computing and more environmentally friendly disposal. Drivers of Thesis • Strong dividend yield of 7.3% is highest in the industry. Provides

guaranteed returns and a defensive position • Strong customer retention of approximately 98% with recurring revenue

stream from monthly storage rental fees. Over 225,00 customers with no single customer accounting for more than 1% of revenue

• A consumer shift from paper and tape storage to alternative technologies

that are more cost effective and environmentally conscious Risks to Thesis • Shifting revenue mix into emerging markets and expanding data center

business will increase revenues by a CAGR of 4.4% • Inconsistent earnings growth and inorganic growth provide pause to the

sustainability of their business strategy

• Significant amount of indebtedness from acquisitions, long term debt is approximately $8.2 billion

Henry Fund DCF $132.00 Henry Fund DDM $24.00 Relative Multiple $37.00 Price Data Current Price $34.07 52wk Range $29.28 – 37.32 Consensus 1yr Target $35.40 Key Statistics Market Cap (B) $9.78 Shares Outstanding (M) 287.10 Institutional Ownership 83.50% Five Year Beta 0.55 Dividend Yield 7.30% Est. 5yr Growth 4.40% Price/Earnings (TTM) 24.71 Price/Earnings (FY1) 28.16 Price/Sales (TTM) 2.30 Price/Book (mrq) 6.47 Profitability Operating Margin 18.20% Profit Margin 9.35% Return on Assets (TTM) 3.8% Return on Equity (TTM) 22.09%

Earnings Estimates Year 2016 2017 2018 2019E 2020E 2021E EPS $0.46 $0.69 $1.27 $1.50 $1.21 $0.96

growth XX.X% 50.0% 84.1% 17.73% -19.09% -20.93% Analyst $1.03 $1.21

12 Month Performance Company Description

Iron Mountain Incorporated is a global leader for data storage and information management services with customers that include 95% of the Fortune 1000. Headquartered in Boston, Massachusetts; IRM owns and operates over 85 million square feet of real estate in 1,400 storage facilities across 50 countries. They are led by their CEO W.L. Meaney with $11.8 billion in assets and a market cap of $9.1 billion. The company was founded in 1951 and was formed as a REIT in 2014.

21.3

7.312.7

33.3

3.9

23.1

0

10

20

30

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P/E Dividend EV/EBITDA

IRM Industry

Source: Yahoo Finance

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N D J F M A M J J A S O

IRM S&P 500

Source: Yahoo Finance

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EXECUTIVE SUMMARY

We issue a no action recommendation on Iron Mountain Incorporated. We like IRM’s substantial dividend yield along with their sticky and broad customer base. However, we are concerned with the trend towards a paperless world as well as the large amount of debt that IRM has taken on to make acquisitions. This development has led to inorganic growth of 10% in 2018.

Despite peak real estate prices, IRM has underperformed the REIT index; only returning 2% YTD compared to the 18% return of the index. This can be attributed to Iron Mountain reporting a drop in earnings per share year over in Q1 as well as lowering fiscal year 2019 EPS guidance in their 2nd quarter earnings call. [9]

Source: Yahoo Finance

Another cause for concern is Iron Mountain’s struggle to meet earnings and revenue expectations as they have missed on every quarter this year. Inconsistent earnings growth and lack of inorganic growth is not a sustainable business model. We have forecasted CAGR in total revenues of 4.36%, while we expect a depreciation in EPS of -10.25%.

COMPANY DESCRIPTION

Trusted by more than 225,000 organizations in approximately 50 countries, Iron Mountain stores and protects billions of assets including sensitive data and information. They own and operate over 85 million square feet of real estate in 1,400 storage facilities with customers that make up 95% of the Fortune 1000.

Source: Iron Mountain 10k

Over 80% of Iron Mountains owned square footage comes from the United States. With their next largest markets located in Canada, Australia, and Europe.

North American Records and Information Mgmt.

The North American Records and Information Management business segment provides three services throughout the United States and Canada. Records and information management storage services which includes storage of physical records and the collection, handling, and disposal of secure documents. The second segment includes secure document shredding and disposal management. The last offering is information governance and digital solutions (IDGS) which develops a firms management throughout the data securitization life cycle.

0 10 20 30 40 50 60

Australia

United States

Brazil

England

France

India

China

Canada

Square Feet (in Millions)

Square Feet

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Source: Iron Mountain 10k 2018

This is easily there largest revenue generator contributing over 60% of their revenues. This makes sense as the US and Canada make up over 85% of their owned real estate. We forecast this segment to remain steady as IRM focuses more on their emerging markets.

Source: Iron Mountain 10k 2018

Records and information management have a strong building utilization above 82%. This is very good for the industry as most small and large enterprises have a utilization rate of 50 to 75%. [13]

Source: Iron Mountain 10k 2018

On the other hand, their data management building utilizations are as much as 40% lower than records management. It is a positive development that they have higher utilization rates in their emerging markets.

Western European Business

This segment provides records management, data management, and IGDS throughout most of the European Union. This is their third most profitable segment.

As IRM focuses more on emerging markets, we do not believe this segment to have strong growth. Especially with more stringent business regulations, we see an uphill battle for Iron Mountain to gain traction in this market.

Other International Business

This segment is focused in emerging markets and provides records management, data management, and IDGS to these markets.

Global Data Center Business

The newest business segment provides data center facilities to protect assets and firms’ IT infrastructures. They currently operate in eight domestic markets and three international which include Amsterdam, London, and Singapore.

Currently the segment provides less than 10% of the top line, but the expansion of their data centers is apart of their growth portfolio. We project that this segment will peak at 15% of revenues by 2023 as IRM will have a tough

0

500000

1000000

1500000

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2500000

2016 2017 2018

Revenues by Business Segment

North American Data Mgmt Western European

Other International Global Data Center

Corporate

80%

82%

84%

86%

88%

90%

UnitedStates

England LatinAmerica

Asia Total

Records & Info Management

Building Utilization

0%

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60%

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100%

NorthAmerica

Europe LatinAmerica

Asia Total

Data Management

Building Utilization

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time breaking into the cloud computing industry which is dominated by Amazon and Microsoft.

Source: Amazon Web Services

Corporate and Other Business

The final business segment consists of the storage, safeguarding, and delivery of media assets. The primary clients are in the entertainment and media services industry. These clients are in North America, Europe, and Asia. This segment makes up less than 3% of revenue and we do not see it playing an integral part in the success of the company. We forecast this segment with flat growth.

Company Analysis

Storage Rental

Due to recent acquisitions, storage rental revenue increased by 10% in 2018 compared to organic growth of 2.4%. Storage rental includes the storage of physical documents and data. This revenue is provided through monthly fees that their customers enter into through contract. Over 50% of these contracts are more than 15 years old. Their customer base includes 95% of the Fortune 1000 and none of their 225,000 customers make up more than 1% of their revenues. We forecast this revenue to increase through 2020 by a CAGR of 5.25% before tapering off with the expiration of almost 45% of their contracts.

Source: HF Model

Source: Iron Mountain 10k 2018

One of the most concerning developments in Iron Mountain is the nearing expiration of a large amount of their contracts. Almost 45% will expire by 2020 and 65% will expire by 2021. We expect most of these clients will resign, but we worry that they could forfeit their renewal because of the possibility that the data they were storing is now obsolete. Thus, IRM’s services are no longer needed.

Service

Service revenues make up about 40% of IRM’s top line. This revenue includes the information technology and corporate governance solutions that

Cloud Computing Market Share

Amazon Microsoft Alibaba Google IBM Others

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500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

2016 2017 2018 2019E 2020E

Storage Rental Revenues

Storage rental

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5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

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Percentage of Contract Rent Expiring

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IRM provides to firms. This revenue comes in as a monthly consulting fee. We believe that these revenues could take a hit with the idea that once you have used the service your IT structure should be in good shape and you will discontinue the consulting fee. Service revenues are forecasted at a CAGR of 2.83%.

Source: HF Model

Operating Expenses

90% of Iron Mountain’s operating expenses come from cost of sales excluding depreciation & amortization as well as selling, general, and administrative.

Source: HF Model

Cost of sales make up about 65% of total revenues. They include labor costs, facilities maintenance & rent, transportation costs of data, and the product cost of sales. Labor and facilities make up the highest costs.

Source: Iron Mountain 10k

SG&A makes up around 25% of revenues. They consist of administrative costs, sales & marketing, information technology, and significant acquisition costs. Significant acquisition costs consist of the Recall acquisition in 2016 as well as the IODC acquisition in 2018. These acquisitions generated 10% of inorganic growth in 2018. However, they came at a high cost as IRM has long term debt of over $8 billion. We forecast operating expenses to remain flat from IRM’s cost synergies with their acquisition of IODC from 2018.

Source: Iron Mountain 10k

1,200.00 1,250.00 1,300.00 1,350.00 1,400.00 1,450.00 1,500.00 1,550.00 1,600.00 1,650.00

2016 2017 2018 2019E 2020E

Service Revenues

Service

(2,000.00)

(1,500.00)

(1,000.00)

(500.00)

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Operating Expenses

Cost of sales excluding depreciation and amortization

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Labor Facilities Transportation Product Cost ofSales

% of Revenues

2016 2017 2018

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10.00%12.00%14.00%16.00%

General andAdministrative

Sales &Marketing

InformationTechnology

SignificantAcquisition

Costs

SG&A % of Revenues

2016 2017 2018

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RECENT DEVELOPMENTS

Describe the latest trends or developments currently shaping the industry. In addition to describing the current environment, be sure to provide forward-looking guidance. This is a great section to provide a discussion of recent performance that may not fit well within the other sections.

3rd Quarter Earnings Report (October 31)

IRM announced 3rd quarter revenues of $1.06 billion which was flat YoY as well as EPS of $0.32 compared to $0.28 the year before. Analysts had expected revenues of $1.07 billion and EPS of $0.30. Another miss on earnings reports has become a trend for Iron Mountain as they have missed on either revenues or earnings each quarter of 2019.

CEO William Meaney spun the report as “demonstrating the durability and stability” of their core revenues. With greater than 50% of their revenue coming from partnerships lasting more than 15 years, this line is evident. However, the problem is gaining momentum on new relationships and revenue streams. With the likes of Google, Amazon, and Microsoft at the center of cloud computing it seems like an uphill battle for IRM to enter this space.

Immersion into Emerging Markets

Iron Mountain has looked to expand its records and information management product into emerging markets like Latin America, Asia, and eastern Europe primarily through acquisitions. Their acquisitions of Recall in 2016 and IODC in 2018 expanded their footprint in Asia and Africa by opening 5 total locations. Latin America and Asia have building utilizations of about 87% and make up about 15% of the total square footage owned by IRM. This strategic initiative is a part of IRM’s growth portfolio which includes expanding data centers. These two strategies are key to them expanding revenues and gaining momentum in their stock.

Data Center Acquisitions

In January 2018 IRM acquired IO Data Centers for approximately $1.34 billion. This purchase included four data centers in Phoenix, AZ, Edison, NJ, Scottsdale, AZ, as well as Columbus, Ohio.[11] This development is evidence of Iron Mountain’s commitment to expanding their data

center footprint and making it a more reliable revenue stream. As of the end of fiscal year 2018, their data storage portfolio totaled more than 150 megawatts of total capacity with planned potential to add an additional 211 megawatts. CEO W.L Meaney stated that this acquisition was completed to “achieve scale, expand geographically, and broaden our product offerings.” It is expected that this acquisition will provide $120 million in revenue synergies annually by 2021.

INDUSTRY TRENDS

Cloud Storage

Cloud storage derives from the cloud computing model which is the delivery of computing services over the internet (“the cloud”) to offer economies of scale and more efficient processes.[10] Cloud storage is one of the benefits of the cloud in that it allows you to store and protect data on the “cloud”. [8] Some of the largest companies in the world like Google, Microsoft, and Amazon have developed their own version of cloud computing. These behemoths make it very hard for Iron Mountain to enter this space. This economic moat becomes evident when you see the slow adoption of Iron Mountain from physical storage to cloud storage in data centers. Below is an illustration of the increasing adoption of cloud computing.

Source: Statista

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Environmentalist Movement

Since the publication of an Inconvenient Truth by Al Gore in 2006, there has been a conscience push for “green” initiatives and for firms to enact sustainable policies. Thus, the war on paper began. Over 50% of Iron Mountains storage has been stored for greater than 15 years. This dates to the pre-environmentalist movement in 2004. Although they have loyal customers, it is evident that they are struggling to acquire new business in a paperless world. IRM has responded by increasing their footprints in data centers which stores sensitive information electronically and on “the cloud”. However, this still makes up less than 10% of their revenue. In addition, to enter this segment they have had to take on over $8 billion worth of debt.

MARKETS AND COMPETITION

Competition in the data storage industry is based on price, reputation, quality of service, and scale of technology. Iron Mountain is the leader in all these attributes.

Iron Mountain’s strong brand, global footprint, and sticky customer relationships are all reasons why 95% of the Fortune 100 are clients.

As of 2017, the global index of REITS included 477 exchange listed companies from 35 countries representing and equity market capitalization of $2 trillion. The purpose of the REIT designation is to reduce or eliminate corporate tax. REITS are eligible by issuing large dividends to their shareholders entitling them to deduct dividends from their income tax. REITS also must have 95% of their income derived from dividends, interest, and property income. In addition, they must pay dividends of at least 90% of their taxable income.

There are no pure play data storage companies like Iron Mountain so when creating a relative P/E & P/FFO model we compared IRM to REITs with similar market caps. Microsoft, Amazon, and Google all are competitors in the cloud storage space, but these have intense economies of scale and most of IRM’s revenue comes from physical record storage.

Peer Comparisons

Industry

Source: Factset

For REITs a good comparable metric is Price/Funds from Operations. Compared to the industrials industry, IRM is cheaply valued. FFO is a measure of the cash generated by a REIT and is calculated by adding depreciation and amortization to earnings and then subtracting any gains on sales.

Source: Factset

IRM has a very strong dividend yield at 7.3%. This is what initially drew us to covering Iron Mountain. However, we do not believe this dividend is sustainable with the concerning developments we forecast.

In addition, Iron Mountain’s EBIT margin is substantially lower than the industry average. This can be seen as a sign that they are not efficiently utilizing their real estate and are in a dying industry.

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IRM

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IRM vs Industrial REITS

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Market Cap Peers

In order to come to a better relative valuation we used REITs with similar market caps. This model gave us our most realistic intrinsic value.

All of these companies operate in different industries, but are similar sized companies. Comparatively, Iron Mountain trades at a lower P/FFO. The comp average is 18.5x, while IRM trades at 15.4x. Despite their cheap valuation, we believe IRM is in a weak position to garner growth. Their attempt to enter the data center & cloud computing require large amounts of capital and substantial indebtedness.

ECONOMIC OUTLOOK

Real estate property is driven by economic variables especially consumer income, market volatility, real estate prices, and 10 yr. treasury yield. Iron mountain is exposed to all of these but also corporate profits as all their 225,000 customers are affiliated with organizations.

Corporate Profits

Source: Federal Reserve Bank of St Louis

IRM revenues have remained stable thanks to strong corporate profits the last few years. Corporate profits are

at all-time highs and that allows them to spend more on their data and information management budget. We expect corporate profits to remain high fueled by the friendly corporate tax environment and deregulation by the Trump administration.

10 yr. Treasury Bill

Source: Federal Reserve Bank of St. Louis

With uncertainty towards Fed policy, this has increased the flight to real estate stocks. Investors are looking for appreciating assets so that they are not exposed to the fluctuations and whims of Jerome Powell and the Federal Reserve. The quarrel between Chairman Powell and President Trump has fueled volatility in this treasury market. We expect this trend to continue with flight to high dividend yielding stocks like REITs.

Market Volatility

Source: Federal Reserve Bank of St. Louis

With political uncertainty in the 2020 general election, there is the expectation that volatility will spike over the

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next year. That will cause a flight to high yielding stocks like REITs to surpass the uncertainty in other equity assets. We forecast volatility at its highest levels since 2015 as there are expectations of a global slowdown and an uncertain political landscape.

Consumer Saving

Source: Federal Reserve Bank of St. Louis

Much like corporate profits, consumer saving positively contributes to revenues. With a strong consumer they are more likely to spend on appreciating assets like real estate. Because of the low debt that households have, they are positioned well for a possible recession. We believe consumers are well placed to continue to speculate and participate in the market.

Source: Federal Reserve Bank of St. Louis

Real estate prices have recovered nicely since the financial crisis of 2009. This trend is evident in the real estate sector as the MSCI REIT index has returned 18% YTD in the market and a 14% return the last 10 years. Since becoming a REIT at the end of fiscal year 2014, IRM has depreciated 12%. It

is alarming that despite rising property prices, Iron Mountain has struggled to boost their market capitalization.

CATALYSTS FOR GROWTH

Catalysts for growth would include strategic immersion into foreign markets to diversify their revenues away from the United States. This would add new customer relationships and reduce exposure to the domestic economy.

In addition, expanding their footprint in data centers would make them more competitive in a paperless world. Generating a majority of their revenue from alternative, more environmentally friendly storage would expose them to new clientele and add additional business from older customers.

INVESTMENT POSITIVES

• Strong dividend yield of 7.3% is highest in the industry. Provides guaranteed returns and a defensive position

• Strong customer retention of approximately 98% with recurring revenue stream from monthly storage rental fees. Over 225,00 customers with no single customer accounting for more than 1% of revenue

• A consumer shift from paper and tape storage to alternative technologies that are more cost effective and environmentally conscious

INVESTMENT NEGATIVES

• Shifting revenue mix into emerging markets and expanding data center business will increase revenues by a CAGR of 5.4%

• Inconsistent earnings growth and inorganic growth provide pause to the sustainability of their business strategy

• Significant amount of indebtedness from acquisitions, long term debt is approximately $8.2 billion

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VALUATION

Revenues

Storage rental makes up more than 60% of their total revenues so we forecasted the top line as a similar ratio of storage rental to service revenue through the CV year. We expected emerging markets like Asia and Latin America to become greater sources of revenue so we have total revenue growing at a CAGR of 4.36% with storage rental at a CAGR of 5.25% and service at a CAGR of 2.83%. Storage rental is awarded a greater growth rate because this includes their expansion in data centers/cloud computing.

Expenses

Operating expenses were forecasted with a depreciating CAGR of 0.16%. This is due to the cost synergies that IRM will form with their acquisition of IODC from 2018. Iron Mountain will become more cost and energy efficient by 2020.

CAPEX

There was no capital expenditure guidance in Iron Mountain’s annual report. We forecasted these expenditures based on historical increases in PPE and their stated goal to expand their global footprint.

EPS vs Consensus

Our 2019 EPS outpaced consensus, and 2020 EPS estimates were the same. However, we forecast depreciating EPS in the subsequent years with the idea that Iron Mountain will not be able to compete in the cloud computing storage. In addition, over 50% of their rental contracts expire in either 2019 or 2020. These expectations are in line with our no action recommendation.

Valuation Models

We felt uncomfortable with our DCF model because of the small beta that IRM trades at. This inflates their intrinsic value to over $100. IRM trades at such a small beta because of its high dividend yield. Whenever there is uncertainty in the market or cuts to bond yields, there is a flight to high dividend stocks like Iron Mountain.

Our relative valuation gave us the most realistic intrinsic value, but there are no pure play data storage comparisons. Our comps were all based on market cap

which can skew the price. CME has a very small beta due to its tendency to move opposite of the market because of its ties to market uncertainty. To ease concerns of an inflated valuation we used the highest possible company beta of 0.64 from Bloomberg and still were given a buy signal from our model.

We chose to get into this space in line with our strategic plan to decrease our exposure to interest rate revenue. Initially we liked the dividend that IRM provided as well as the real estate sector as a whole. We believed the client base and sticky relationships would provide a strong backdrop for IRM to build off of.

However, after completing our model and digging through the financial statements it became obvious that IRM did not belong in the portfolio. They have not performed well since their inception as a REIT in 2014 and the trend away from physical data is a valid concern

Difference from Consensus

Most analysts have a hold recommendation on Iron Mountain so we are in line with consensus.

KEYS TO MONITOR

Keys to monitor would include the 2020 general election race as well as the Trump-China Trade war. Geopolitical uncertainty drives market volatility. There will be an increased amount of investors looking for safe haven assets i.e. dividend yields.

Another would include both global and domestic economies. Fixed income will be a key market to watch as the Fed fixes the inverted yield curve through quantitative easing. From a global perspective: Brexit, the China Trade War, and tensions in the Middle East will be events to keep an eye on. Further escalation abroad could cause a collapse in capital markets.

Lastly, Iron Mountain’s ability or lack there of to enter into the cloud computing market will be a development to keep an eye on. With the recent acquisition of IO Data Centers they have increased their footprint to data centers in 8 markets which include 5 domestic and 3 abroad. They are beginning to make their attempt at entrance in this segment.

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REFERENCES

1. Iron Mountain 10k – 2013 to 2018 2. Yahoo Finance – Iron Mountain 3. Net Advantage – Iron Mountain 4. Factset – Iron Mountain 5. IBIS World – Industrial REITs 6. Statista 7. Investopedia – Real Estate Investment Trusts 8. Amazon Web Services – “What is Cloud Storage” 9. Street Insider – “Iron Mountain Reports Q2” 10. Microsoft Azure – “What is cloud computing” 11. Pritzker Group – “Iron Mountain completes its $1.3

billion acquisition of IO Data Centers” 12. Iron Mountain – Investor Relations 13. Reoptimizer – “Utilization rates for commercial real

estate”

IMPORTANT DISCLAIMER

Henry Fund reports are created by students enrolled in the Applied Securities Management program at the University of Iowa’s Tippie College of Business. These reports provide potential employers and other interested parties an example of the analytical skills, investment knowledge, and communication abilities of our students. Henry Fund analysts are not registered investment advisors, brokers or officially licensed financial professionals. The investment opinion contained in this report does not represent an offer or solicitation to buy or sell any of the aforementioned securities. Unless otherwise noted, facts and figures included in this report are from publicly available sources. This report is not a complete compilation of data, and its accuracy is not guaranteed. From time to time, the University of Iowa, its faculty, staff, students, or the Henry Fund may hold an investment position in the companies mentioned in this report.

Iron MountainRevenue Decomposition

31 DEC '18 31 MAR '19 30 JUN '19 30 SEP '19 31 DEC '19 31 MAR '20 30 JUN '20 30 SEP '20 31 DEC '20 31 MAR '21 30 JUN '21 30 SEP '20 31 DEC '21Fiscal Years Ending Dec. 31 3M (Q4) 3M (Q1) 3M (Q2) 3M (Q3) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Storage rental 658.89 662.97 669.29 673.32 683.34 693.51 703.83 714.31 724.94 735.73 746.68 757.80 769.08 QoQ Growth 0.29% 0.62% 0.95% 0.60% 1.49% 1.49% 1.49% 1.49% 1.49% 1.49% 1.49% 1.49% 1.49%

1.49% 3%Service 402.60 390.89 397.62 388.91 393.18 397.51 401.88 406.30 410.77 415.29 419.86 424.48 429.15 QoQ Growth -0.35% -2.91% 1.72% -2.19% 1.10% 1.10% 1.10% 1.10% 1.10% 1.10% 1.10% 1.10% 1.10%

1.10%Total revenues 1,061.49 1,053.86 1,066.91 1,062.22 1,076.52 1,091.02 1,105.71 1,120.61 1,135.71 1,151.02 1,166.54 1,182.27 1,198.22 QoQ Growth 0.05% -0.72% 1.24% -0.44% 1.35% 1.35% 1.35% 1.35% 1.35% 1.35% 1.35% 1.35% 1.35%

1.27%

Operating expensesCost of sales excluding depreciation (453.38) (461.54) (465.10) (451.32) (455.73) (460.18) (464.68) (469.22) (473.81) (478.44) (483.11) (487.84) (492.60) QoQ Growth 1% 2% 1% -3% 1% 1% 1% 1% 1% 1% 1% 1% 1%

1%Selling, general and administrative (260.45) (270.56) (252.76) (239.16) (241.49) (243.85) (246.24) (248.64) (251.07) (253.53) (256.01) (258.51) (261.03) QoQ Growth 1% 4% -7% -5% 1% 1% 1% 1% 1% 1% 1% 1% 1%

0%Depreciation and amortization (164.92) (162.48) (164.33) (157.56) (159.10) (160.66) (162.23) (163.81) (165.41) (167.03) (168.66) (170.31) (171.97) Loss / gain on disposal / write-down o (9.10) (0.60) 8.41 9.28 QoQ Growth 848% -93% -1496% 10%Total operating expenses (869.65) (895.19) (873.79) (838.75) (846.95) (855.23) (863.58) (872.02) (880.55) (889.15) (897.84) (906.62) (915.48) QoQ Growth 1% 3% -2% -4% 1% 1% 1% 1% 1% 1% 1% 1% 1%

1%Interest expense, net includes interes (105.72) (102.44) (105.31) (106.68) (107.72) (108.77) (109.84) (110.91) (111.99) (113.09) (114.19) (115.31) (116.44) QoQ Growth 2% -3% 3% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%

2%Other expense / income, net (6.28) (15.21) 15.19 13.42 13.55 13.68 13.81 13.95 14.08 14.22 14.36 14.50 14.64 QoQ Growth 1832% 142% -200% -12% 1% 1% 1% 1% 1% 1% 1% 1% 1%

109%Income / loss before provision / bene 99.24 41.03 102.99 130.21 131.48 132.77 134.07 135.38 136.70 138.04 139.39 140.75 142.12 QoQ Growth 8% -59% 151% 26% 1% 1% 1% 1% 1% 1% 1% 1% 1%

32%Provision / benefit for income taxes (5.61) (10.55) (10.65) (21.93) (22.14) (22.36) (22.58) (22.80) (23.02) (23.25) (23.47) (23.70) (23.93) QoQ Growth -61% 88% 1% 106% 1% 1% 1% 1% 1% 1% 1% 1% 1%

Iron MountainIncome Statement

Fiscal Years Ending Dec. 31 2016 2017 2018 2019E 2020E 2021E 2022E 2023ERevenues:Storage rental 2,142.91 2,377.56 2,622.46 2,688.92 2,836.59 3,009.29 3,192.49 3,386.85 Service 1,368.55 1,468.02 1,603.31 1,570.60 1,616.46 1,688.77 1,764.31 1,843.23 Total revenues 3,511.45 3,845.58 4,225.76 4,259.52 4,453.06 4,698.06 4,956.80 5,230.08 Operating expenses - - - - - - - - Cost of sales excluding depreciation and amortization (1,567.78) (1,685.32) (1,801.58) (1,833.69) (1,867.89) (1,941.99) (2,019.03) (2,099.13)Selling, general and administrative (988.33) (984.97) (1,038.98) (1,002.15) (963.87) (972.22) (980.64) (989.13)Depreciation and amortization (452.33) (522.38) (639.51) (364.17) (369.96) (376.46) (383.64) (391.46)Loss / gain on disposal / write-down of property, plant and equipment excluding real estate, net (1.41) (0.80) (8.39) 26.37 37.14 37.14 37.14 37.14 Total operating expenses (3,009.85) (3,196.47) (3,470.25) (3,173.64) (3,164.59) (3,253.54) (3,346.18) (3,442.59)Interest expense, net includes interest income (310.66) (353.58) (409.29) (423.21) (457.03) (494.19) (534.38) (577.83)Other expense / income, net (44.30) (79.43) (7.70) 26.81 53.66 53.66 53.66 53.66 Income / loss before provision / benefit for income taxes 146.64 216.11 357.91 404.45 520.85 520.85 520.85 520.85 Provision / benefit for income taxes (44.94) (25.95) (47.48) (65.05) (87.71) (87.71) (87.71) (87.71)Gain / loss on sale of real estate, net of tax 2.18 1.57 (52.63) - - - - - Income / loss from continuing operations 103.88 191.72 376.98 1,028.87 1,318.24 1,437.12 1,563.04 1,696.46 Loss / income from discontinued operations, net of tax 3.35 (6.29) (12.43) 0.10 - - - - Net income / loss 107.23 185.43 364.55 1,028.98 1,318.24 1,437.12 1,563.04 1,696.46 Net income / loss attributable to noncontrolling interests (2.41) (1.61) 0.23 (2.14) (2.44) (2.44) (2.44) (2.44)Net income / loss attributable to Iron Mountain Incorporated 104.82 183.82 363.35 1,026.83 1,315.81 1,434.69 1,560.61 1,694.02

- - - - - - - - - - - - - - - -

Per share - - - - - - - - Basic 0.46 0.69 1.27 1.50 1.21 0.96 0.83 0.74

50.00% 84.06% 17.73% -19.09% -20.33% -14.30% -10.45%Continuing operations 0.45 0.72 1.32 1.50 1.21 0.96 0.83 0.74 Discontinued operations 0.02 (0.02) (0.04) - - - - - # of Shares 246.18 265.90 285.91 687 1,088 1,488 1,889 2,290Dividends 2.0427 2.2706 2.3753 2.80 2.26 1.80 1.54 1.38

Iron MountainIncome Statement

31 MAR '16 31 DEC '18 31 MAR '19 30 JUN '19 30 SEP '19 31 DEC '19 31 MAR '20 30 JUN '20 30 SEP '20 31 DEC '20 31 MAR '2 30 JUN '21 30 SEP '21 31 DEC '21Fiscal Years Ending Dec. 31 3M (Q1) 3M (Q4) 3M (Q1) 3M (Q2) 3M (Q3) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Revenues:Storage rental 461.21 658.89 662.97 669.29 673.32 683.34 693.51 703.83 714.31 724.94 735.73 746.68 757.80 769.08 Service 289.48 402.60 390.89 397.62 388.91 393.18 397.51 401.88 406.30 410.77 415.29 419.86 424.48 429.15 Total revenues 750.69 1,061.49 1,053.86 1,066.91 1,062.22 1,076.52 1,091.02 1,105.71 1,120.61 1,135.71 1,151.02 1,166.54 1,182.27 1,198.22 Operating expensesCost of sales excluding depreciation and amortization (326.11) (453.38) (461.54) (465.10) (451.32) (455.73) (460.18) (464.68) (469.22) (473.81) (478.44) (483.11) (487.84) (492.60)Selling, general and administrative (207.77) (260.45) (270.56) (252.76) (239.16) (239.67) (240.19) (240.71) (241.23) (241.75) (242.27) (242.79) (243.32) (243.84)Depreciation and amortization (87.20) (164.92) (162.48) (164.33) (157.56) Loss / gain on disposal / write-down of property, plant and equipment excluding real estate, net 0.45 (9.10) (0.60) 8.41 9.28 9.28 9.28 9.28 9.28 9.28 9.28 9.28 9.28 9.28 Total operating expenses (620.62) (869.65) (895.19) (873.79) (838.75) (686.12) (691.09) (696.10) (701.16) (706.27) (711.42) (716.62) (721.87) (727.16)Interest expense, net includes interest income (67.06) (105.72) (102.44) (105.31) (106.68) (108.78) (110.93) (113.12) (115.35) (117.63) (119.95) (122.32) (124.73) (127.19)Other expense / income, net 11.94 (6.28) (15.21) 15.19 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 Income / loss before provision / benefit for income taxes 74.94 99.24 41.03 102.99 130.21 130.21 130.21 130.21 130.21 130.21 130.21 130.21 130.21 130.21 Provision / benefit for income taxes (11.90) (5.61) (10.55) (10.65) (21.93) (21.93) (21.93) (21.93) (21.93) (21.93) (21.93) (21.93) (21.93) (21.93) Gain / loss on sale of real estate, net of tax - (53.98) - - - - - - - - - - - - Income / loss from continuing operations 63.04 158.83 30.48 92.35 108.28 403.32 410.70 418.19 425.79 433.51 441.35 449.30 457.37 465.57 Loss / income from discontinued operations, net of tax - - (0.02) 0.13 - - - - - - - - - - Net income / loss 63.04 158.83 30.45 92.47 108.28 403.32 410.70 418.19 425.79 433.51 441.35 449.30 457.37 465.57 Net income / loss attributable to noncontrolling interests (0.27) 0.71 (0.89) (0.03) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) Net income / loss attributable to Iron Mountain Incorporated 62.77 158.12 29.56 92.44 107.68 402.72 410.09 417.58 425.19 432.90 440.74 448.69 456.76 464.96

Iron MountainBalance Sheetin MillionsFiscal Years Ending Dec. 31 2016 2017 2018 2019E 2020E 2021E 2022E 2023EAssets Current Assets:Cash and cash equivalents 236.48 925.70 165.49 212.48 843.11 1,924.13 3,132.57 4,476.47 Accounts receivable, less allowances 691.25 835.74 846.89 908.01 973.53 1,043.79 1,119.11 1,199.88 Prepaid expenses and other 184.37 188.87 195.74 209.00 223.15 238.27 254.41 271.64 Total current assets 1,112.11 1,950.31 1,208.11 1,329.49 2,039.80 3,206.19 4,506.10 5,947.98 Property,Plant and EquipmentProperty, plant and equipment 5,535.78 6,251.10 7,600.95 7,283.34 7,399.17 7,529.21 7,672.75 7,829.12 Accumulated depreciation (2,452.46) (2,833.42) (3,111.39) (3,475.56) (3,845.52) (4,221.98) (4,605.62) (4,997.07)Property, plant and equipment, net 3,083.33 3,417.68 4,489.56 3,807.78 3,553.66 3,307.24 3,067.14 2,832.04 Other assets, netGoodwill 3,905.02 4,070.27 4,441.03 4,441.03 4,441.03 4,441.03 4,441.03 4,441.03 Customer relationships, customer inducements and data center lease-based intangibles 1,252.52 1,400.55 1,506.52 1,620.52 1,743.14 1,875.03 2,016.91 2,169.52 Other 133.82 133.59 207.02 207.02 207.02 207.02 207.02 207.02 Total other assets, net 5,291.37 5,604.41 6,154.58 6,268.57 6,391.19 6,523.09 6,664.96 6,817.58 Total assets 9,486.80 10,972.40 11,852.25 11,405.84 11,984.64 13,036.51 14,238.20 15,597.60 Liabilities and EquityCurrent LiabilitiesCurrent portion of long-term debt 172.98 146.30 126.41 123.88 121.40 118.97 116.59 114.26 Accounts payable 222.20 289.14 318.77 346.51 376.66 409.45 445.08 483.82 Accrued expenses and other current liabilities 450.26 653.15 752.68 847.56 954.40 1,074.70 1,210.16 1,362.70 Deferred revenue 201.13 241.59 264.82 274.70 284.95 295.57 306.60 318.03 Total current liabilities 1,046.56 1,330.17 1,462.68 1,592.65 1,737.41 1,898.69 2,078.43 2,278.81 Long-term debt, net of current portion 6,078.21 6,896.97 8,016.42 7,615.60 7,234.82 6,873.08 6,529.42 6,202.95 Other long-term liabilities excluding deferred rent and deferred income taxes 99.54 73.04 111.33 111.33 111.33 111.33 111.33 111.33 Deferred rent 119.83 126.23 121.86 121.86 121.86 121.86 121.86 121.86 Deferred income taxes 151.29 155.73 183.84 180.16 176.56 173.02 169.56 166.17 Commitments and Contingencies:Redeemable noncontrolling interests 54.70 91.42 70.53 70.53 70.53 70.53 70.53 70.53 Total liabilities 7,550.13 8,673.56 9,966.66 9,692.13 9,452.51 9,248.52 9,081.15 8,951.67 Equity:Iron Mountain Stockholder's EquityPreferred stock - - - - - - - - APIC 3,492.43 4,167.39 4,266.21 4,308.87 4,351.96 4,395.48 4,439.44 4,483.83 Distributions in excess of earnings / earnings in excess of distributions (1,343.31) (1,765.97) (2,116.37) (2,330.91) (1,555.57) (343.23) 981.87 2,426.36 Accumulated other comprehensive items, net (212.57) (103.99) (265.66) (265.66) (265.66) (265.66) (265.66) (265.66) Total Iron Mountain Incorporated stockholders' equity 1,936.55 2,297.44 1,884.18 1,712.30 2,530.73 3,786.59 5,155.64 6,644.53 Noncontrolling interests 0.12 1.40 1.41 1.41 1.41 1.41 1.41 1.41 Total equity 1,936.67 2,298.84 1,885.59 1,713.71 2,532.14 3,788.00 5,157.05 6,645.94 Total liabilities and equity 9,486.80 10,972.40 11,852.25 11,405.84 11,984.64 13,036.51 14,238.20 15,597.60

Iron MountainCash Flow Statement

Fiscal Years Ending Dec. 31 2016 2017 2018Cash Flow from Operating ActivitiesNet income / loss 107.233 185.43201 364.54901Income / loss from discontinued operations -3.353 6.291 12.427Adjustments to reconcile net incomeDepreciation 365.526 406.28299 452.73999Amortization includes deferred financing costs and bond discount 99.950996 131.05499 202.44901Goodwill and intangible asset impairment - 3.011 0Revenue reduction associated with amortization of permanent withdrawal fees 12.217 11.253 16.281Stock-based compensation expense 28.976 30.018999 31.167Benefit / provision for deferred income taxes -50.368 -36.369999 -10.729Loss on early extinguishment of debt, net 9.283 78.367996 0Gain / loss on disposal / write-down of property, plant and equipment, net including real estate -0.898 -0.766 -65.657997Gain / loss on disposition of iron mountain divestments 16.837999 0 0Gain on Russia and Ukraine divestment - -38.868999 0Foreign currency transactions and other, net excluding revenue reduction associated with amortization of permanent withdrawal fees 16.624001 50.502998 -16.395Increase / decrease in assets - - -36.054001Decrease / increase in liabilities - - -14.233Cash flows from operating activities - continuing operations 541.216 724.25897 936.54401Cash flows from operating activities - discontinued operations 2.679 -3.291 -0.995Cash flows from operating activities 543.89502 720.96802 935.54901

Cash flows from investingCapital expenditures -328.603 -343.13101 -460.06201Cash paid for acquisitions, net of cash acquired -291.965 -219.705 -1758.557Acquisition of customer relationships -31.561001 -55.125999 -63.577Customer inducements -19.205 -20.059 -8.902Contract fulfillment costs - - -26.208Net proceeds from divestments 30.653999 29.236 1.019Proceeds from sales of property and equipment and other, net including real estate 7.977 9.337 86.158997Cash flows from investing activities - continuing operations -632.703 -599.448 -2230.1279Cash flows from investing activities - discontinued operations 96.711998 0 8.25Cash flows from investing activities -535.99103 -599.448 -2221.8779

Cash Flows from FinancingRepayment of revolving credit and term loan facilities and other debt -14851.44 -14429.695 -14192.139Proceeds from revolving credit and term loan facilities and other debt 14544.388 13917.055 15351.614Early retirement of senior subordinated notes 0 -1746.856 0Net proceeds from sales of senior notes 925.44299 2656.948 0Debt financing and equity contribution from noncontrolling interests 1.299 13.23 0Debt repayment and equity distribution to noncontrolling interests -1.765 -4.151 -2.523Parent cash dividends -505.871 -439.99899 -673.63501Net proceeds associated with the equity offering - 516.46198 76.192001Proceeds from issuance of At The Market program - 59.129002 8.716Net proceeds / payments associated with employee stock-based awards 31.922001 13.095 -1.142Payment of debt financing and stock issuance costs -18.603001 -14.793 -16.405001Cash flows from financing activities - continuing operations 125.373 540.42499 550.67798Cash flows from financing activities - discontinued operations 0 0 0Cash flows from financing activities 125.373 540.42499 550.67798Effect of exchange rates on cash and cash equivalents -25.174 27.27 -24.563Decrease / increase in cash and cash equivalents 108.103 689.21503 -760.21399Cash and cash equivalents, beginning of period 128.381 236.48399 925.69898Cash and cash equivalents, end of period 236.48399 925.69898 165.485

Iron MountainCash Flow Statement

Fiscal Years Ending Dec. 31 2019E 2020E 2021E 2022E 2023ECash Flow from Operating ActivitiesNet income / loss 1,026.83 1,315.81 1,434.69 1,560.61 1,694.02

Adjustments to reconcile net incomeDepreciation 364.17 369.96 376.46 383.64 391.46

Change In:Goodwill and intangible asset impairment - - - - - Accounts receivable, less allowances (61.12) (65.53) (70.26) (75.33) (80.76)Prepaid expenses and other (13.26) (14.16) (15.12) (16.14) (17.23)Accounts payableCurrent portion of long-term debt 27.74 30.16 32.78 35.63 38.74 Benefit / provision for deferred income taxes (3.68) (3.60) (3.53) (3.46) (3.39)Accrued expenses and other current liabilities 94.88 106.84 120.30 135.47 152.54 Customer Relationships (113.99) (122.62) (131.90) (141.88) (152.61)Other - - - - -

Cash flows from operating activities 1,321.57 1,616.85 1,743.43 1,878.54 2,022.76

Cash flows from investingCurrent Portion of Long Term Debt (2.53) (2.48) (2.43) (2.38) (2.33)Long-term debt, net of current portion (400.82) (380.78) (361.74) (343.65) (326.47)Other long-term liabilities excluding deferred rent and deferred income taxes - - - - - Deferred rent 9.88 10.25 10.63 11.02 11.44 Property, plant and equipment, net 317.61 (115.83) (130.04) (143.54) (156.36)Cash flows from investing activities (75.86) (488.84) (483.58) (478.55) (473.73)

Cash Flows from FinancingPreferred stock - - - - - APIC 42.66 43.09 43.52 43.95 44.39 Accumulated other comprehensive items, net - - - - - Non controlling interest - - - - - Dividends (1,241.37) (540.47) (222.35) (235.51) (249.53)Cash Flows from Financing (1,198.71) (497.38) (178.83) (191.56) (205.13)

Decrease / increase in cash and cash equivalents 47.00 630.63 1,081.02 1,208.44 1,343.89 Cash and cash equivalents, beginning of period 165.49 212.48 843.11 1,924.13 3,132.57 Cash and cash equivalents, end of period 212.48 843.11 1,924.13 3,132.57 4,476.47

Iron MountainCommon Size Income Statement

31 DEC '18 31 MAR '19 30 JUN '19 30 SEP '19 31 DEC '19 31 MAR '20 30 JUN '20 30 SEP '20 31 DEC '20 31 MAR '21 30 JUN '21 30 SEP '21 31 DEC '21Fiscal Years Ending Dec. 31 3M (Q4) 3M (Q1) 3M (Q2) 3M (Q3) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Revenues:Storage rental 62.07% 62.91% 62.73% 63.39% 63.48% 63.57% 63.65% 63.74% 63.83% 63.70% 63.92% 64.01% 64.10%Service 37.93% 37.09% 37.27% 36.61% 36.52% 36.43% 36.35% 36.26% 36.17% 36.30% 36.08% 35.99% 35.90%Total revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%Operating expenses 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Cost of sales excluding depreciation and amortization -42.71% -43.80% -43.59% -42.49% -42.33% -42.18% -42.03% -41.87% -41.72% -41.95% -41.57% -41.41% -41.26%Selling, general and administrative -24.54% -25.67% -23.69% -22.51% -22.26% -22.02% -21.77% -21.53% -21.29% -21.65% -21.05% -20.81% -20.58%Depreciation and amortization -15.54% -15.42% -15.40% -14.83% 0.00% 0.00% 0.00% 0.00% 0.00% -8.31% -32.71% -32.89% -33.11%Loss / gain on disposal / write-down of property, plant and equipment excluding real estate, net -0.86% -0.06% 0.79% 0.87% 0.86% 0.85% 0.84% 0.83% 0.82% 0.83% 0.81% 0.80% 0.79%Total operating expenses -81.93% -84.94% -81.90% -78.96% -63.73% -63.34% -62.96% -62.57% -62.19% -71.07% -94.51% -94.32% -94.17%Interest expense, net includes interest income -9.96% -9.72% -9.87% -10.04% -10.10% -10.17% -10.23% -10.29% -10.36% -10.26% -10.42% -10.49% -10.55%Other expense / income, net -0.59% -1.44% 1.42% 1.26% 1.25% 1.23% 1.21% 1.20% 1.18% 1.21% 1.17% 1.15% 1.13%Income / loss before provision / benefit for income taxes 9.35% 3.89% 9.65% 12.26% 12.10% 11.93% 11.78% 11.62% 11.47% 11.70% 11.31% 11.16% 11.01%Provision / benefit for income taxes -0.53% -1.00% -1.00% -2.06% -2.04% -2.01% -1.98% -1.96% -1.93% -1.97% -1.91% -1.88% -1.85%Gain / loss on sale of real estate, net of tax -5.09% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Income / loss from continuing operations 14.96% 2.89% 8.66% 10.19% 37.47% 37.64% 37.82% 38.00% 38.17% 29.60% 5.64% 5.63% 5.58%Loss / income from discontinued operations, net of tax 0.00% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Net income / loss 14.96% 2.89% 8.67% 10.19% 37.47% 37.64% 37.82% 38.00% 38.17% 29.60% 5.64% 5.63% 5.58%Net income / loss attributable to noncontrolling interests 0.07% -0.08% 0.00% -0.06% -0.06% -0.06% -0.06% -0.05% -0.05% -0.05% -0.05% -0.05% -0.05%Net income / loss attributable to Iron Mountain Incorporated 14.90% 2.81% 8.66% 10.14% 37.41% 37.59% 37.77% 37.94% 38.12% 29.55% 5.58% 5.58% 5.52%

Iron MountainCommon Size Balance Sheet

Fiscal Years Ending Dec. 31 2016 2017 2018 2019E 2020E 2021E 2022E 2023EAssets Current Assets:Cash and cash equivalents 2% 8% 1% 2% 7% 15% 22% 29%Accounts receivable, less allowances 7% 8% 7% 8% 8% 8% 8% 8%Prepaid expenses and other 2% 2% 2% 2% 2% 2% 2% 2%Total current assets 12% 18% 10% 12% 17% 25% 32% 38%Property,Plant and Equipment 0% 0% 0% 0% 0% 0% 0% 0%Property, plant and equipment 58% 57% 64% 64% 62% 58% 54% 50%Accumulated depreciation -26% -26% -26% -30% -32% -32% -32% -32%Property, plant and equipment, net 33% 31% 38% 33% 30% 25% 22% 18%Other assets, net 0% 0% 0% 0% 0% 0% 0% 0%Goodwill 41% 37% 37% 39% 37% 34% 31% 28%Customer relationships, customer inducements and data center lease-based intangibles 13% 13% 13% 14% 15% 14% 14% 14%Other 1% 1% 2% 2% 2% 2% 1% 1%Total other assets, net 56% 51% 52% 55% 53% 50% 47% 44%Total assets 100% 100% 100% 100% 100% 100% 100% 100%Liabilities and Equity 0% 0% 0% 0% 0% 0% 0% 0%Current Liabilities 0% 0% 0% 0% 0% 0% 0% 0%Current portion of long-term debt 2% 1% 1% 1% 1% 1% 1% 1%Accounts payable 2% 3% 3% 3% 3% 3% 3% 3%Accrued expenses and other current liabilities 5% 6% 6% 7% 8% 8% 8% 9%Deferred revenue 2% 2% 2% 2% 2% 2% 2% 2%Total current liabilities 11% 12% 12% 14% 14% 15% 15% 15%Long-term debt, net of current portion 64% 63% 68% 67% 60% 53% 46% 40%Other long-term liabilities excluding deferred rent and deferred income taxes 1% 1% 1% 1% 1% 1% 1% 1%Deferred rent 1% 1% 1% 1% 1% 1% 1% 1%Deferred income taxes 2% 1% 2% 2% 1% 1% 1% 1%Commitments and Contingencies 0% 0% 0% 0% 0% 0% 0% 0%Redeemable noncontrolling interests 1% 1% 1% 1% 1% 1% 0% 0%Total liabilities 80% 79% 84% 85% 79% 71% 64% 57%Equity: 0% 0% 0% 0% 0% 0% 0% 0%Iron Mountain Stockholder's Equity 0% 0% 0% 0% 0% 0% 0% 0%Preferred stock 0% 0% 0% 0% 0% 0% 0% 0%Additional paid-in capital 37% 38% 36% 38% 36% 34% 31% 29%Distributions in excess of earnings / earnings in excess of distributions -14% -16% -18% -20% -13% -3% 7% 16%Accumulated other comprehensive items, net -2% -1% -2% -2% -2% -2% -2% -2%Total Iron Mountain Incorporated stockholders' equity 20% 21% 16% 15% 21% 29% 36% 43%Noncontrolling interests 0% 0% 0% 0% 0% 0% 0% 0%Total equity 20% 21% 16% 15% 21% 29% 36% 43%Total liabilities and equity 100% 100% 100% 100% 100% 100% 100% 100%

Iron MountainValue Driver Estimation

Fiscal Years Ending Dec. 31 2016 2017 2018 2019E 2020E 2021E 2022E 2023ERevenueStorage Rental 2,142.91 2,377.56 2,622.46 2,688.92 2,836.59 3,009.29 3,192.49 3,386.85 Service 1,368.55 1,468.02 1,603.31 1,570.60 1,616.46 1,688.77 1,764.31 1,843.23 ExpensesCost of sales excluding depreciation a (1,567.78) (1,685.32) (1,801.58) (1,833.69) (1,867.89) (1,941.99) (2,019.03) (2,099.13)Selling, general and administrative (988.33) (984.97) (1,038.98) (1,002.15) (963.87) (972.22) (980.64) (989.13)Depreciation and amortization (452.33) (522.38) (639.51) (364.17) (369.96) (376.46) (383.64) (391.46)Implied interest on op. leases 81.516378 87.323084 87.904675 90.541815 93.25807 96.055812 98.937486 101.90561EBITA 584.53 740.24 833.59 1,150.05 1,344.60 1,503.44 1,672.43 1,852.26

Income Tax Provision 146.64 286.41 389.89 389.32 216.11 410.93 431.64 494.93 Tax on lease interest 1.63 1.75 1.76 1.81 1.87 1.92 1.98 2.04Tax on gains/losses 0.33 0.23 (7.89) - - - - -

Interest and other borrowing costs (310.66) (640.32) (655.42) (661.11) (353.58) (718.72) (730.86) (745.71) Total adjusted taxes (162.06) (351.92) (271.67) (269.97) (135.60) (305.87) (297.24) (248.74) Change in Deferred Taxes 96.29 4.43 28.11 (3.68) (3.60) (3.53) (3.46) (3.39)

NOPLAT 356.71 40.83 318.37 606.43 1,069.78 888.16 1,074.48 1,351.39

Total operating current assets:Normal Cash 4.73 18.51 3.31 4.25 16.86 38.48 62.65 89.53 Accounts receivable 691.25 835.74 846.89 908.01 973.53 1,043.79 1,119.11 1,199.88 Prepaid expenses and other 184.37 188.87 195.74 209.00 223.15 238.27 254.41 271.64

Net operating working capital:Accounts Payable 222.20 289.14 318.77 346.51 376.66 409.45 445.08 483.82 Accrued expenses and other current l 450.26 653.15 752.68 847.56 954.40 1,074.70 1,210.16 1,362.70 Deferred Revenue 201.13 241.59 264.82 274.70 284.95 295.57 306.60 318.03 NOWC 873.58 1,183.87 1,336.27 1,468.77 1,616.01 1,779.72 1,961.84 2,164.55

Property, net of accumulated deprec 3,083.33 3,417.68 4,489.56 3,807.78 3,553.66 3,307.24 3,067.14 2,832.04 Intangible assets 1,252.52 1,400.55 1,506.52 1,620.52 1,743.14 1,875.03 2,016.91 2,169.52 Customer relationships 1,252.52 1,400.55 1,506.52 1,620.52 1,743.14 1,875.03 2,016.91 2,169.52 PV of operating leases 1968.99 2109.25 2123.30 2187.00 2252.61 2320.19 2389.79 2461.49Other assets 133.82 133.59 207.02 207.02 207.02 207.02 207.02 207.02 Invested capital 7,691.19 8,461.62 9,832.93 9,442.84 9,499.56 9,584.51 9,697.78 9,839.60

NOPLAT 356.71 40.83 318.37 606.43 1,069.78 888.16 1,074.48 1,351.39 Beg. Invested Capital 6,028.35 7,691.19 8,461.62 9,832.93 9,442.84 9,499.56 9,584.51 9,697.78 ROIC 5.92% 0.53% 3.76% 6.17% 11.33% 9.35% 11.21% 13.94%

Beg. Invested Capital 6028.35 7691.19 8461.62 9832.93 9442.84 9499.56 9584.51 9697.78ROIC 5.92% 0.53% 3.76% 6.17% 11.33% 9.35% 11.21% 13.94%WACC 3.93% 3.93% 3.93% 3.93% 3.93% 3.93% 3.93% 3.93%Economic Profit 119.99 -261.18 -13.89 220.32 699.00 515.15 698.13 970.59

NOPLAT 356.71 40.83 318.37 606.43 1,069.78 888.16 1,074.48 1,351.39 Beg. Invested Capital 6028.35 7691.19 8461.62 9832.93 9442.84 9499.56 9584.51 9697.78Ending Invested Capital 7,691.19 8,461.62 9,832.93 9,442.84 9,499.56 9,584.51 9,697.78 9,839.60 Free Cash Flow (FCF) (1,306.13) (729.61) (1,052.94) 996.52 1,013.06 803.21 961.22 1,209.56

Iron MountainWeighted Average Cost of Capital (WACC) Estimation

Risk Free Rate 1.92%Equity Risk Premium 4.95%Beta 0.55Cost of Equity 4.64%

Pre Tax Cost of Debt 4.14%Marginal Tax Rate 22%After Tax Cost of Debt 3.229200%

Total Shares Outstanding 291.013522Share Price $34.37Value of Equity $10,002.13

Long Term Debt 8,016.42 Current Portion LT Debt 126.41 PV of Operating Leases 2123Value of Debt 10,266.12

Total Value $20,268.26Weight of Equity 49.35%Weight of Debt 50.65%

Weighted Cost of Equity 2.29%

Weighted Cost of Debt 1.64%WACC 3.93%

Iron MountainDiscounted Cash Flow (DCF) and Economic Profit (EP) Valuation Models

Key Inputs: CV Growth 2.00% CV ROIC 13.94% WACC 3.93% Cost of Equity 4.64%CV ROENet Income 363.35 Fiscal Years Ending Dec. 31 2019E 2020E 2021E 2022E 2023E

DCF ModelNOPLAT 606 1070 888 1074 1351CapEXFCF 997 1013 803 961 1210CV 60075Discount Factor 1 1 1 1 1PV of FCF 959 938 716 824 51497Value of Operating Assets 54934

EP ModelEconomic Profit 220 699 515 698 971CV 50377Discount Factor 1 1 1 1 1PV 212 647 459 598 43184Total PV 45101Beg IC 9833Value of Operating Assets 54934

Long term debt, net of current portion 8016PV of ESOP 6885PV of Operating Leases 2,123.30 Non-controlling interests 1.41 Value of Non-Operating Liabilities 17026

Value of Equity 37908Shares Outstanding 287.48727Intrinsic Value 131.86Partial Year Adjustment 131.92

Iron MountainDividend Discount Model (DDM) or Fundamental P/E Valuation Model

Fiscal Years Ending Dec. 31 2019E 2020E 2021E 2022E 2023E

EPS 1.50$ 1.21$ 0.96$ 0.83$ 0.74$

Key Assumptions CV growth 2.00% CV ROE 11% Cost of Equity 4.64%

Future Cash Flows P/E Multiple (CV Year) 30.87 EPS (CV Year) 0.74$ Future Stock Price 22.84$ Dividends Per Share 2.80 2.26$ 1.80$ 1.54$ 1.38$ Future Cash Flows 22.84$ Discount Periods 1 2 3 4 4 Discounted Cash Flows 2.67$ 2.07$ 1.57$ 1.29$ 19.047$

Intrinsic Value 23.98$

Iron MountainRelative Valuation Models

EPS EPS FFO FFOTicker Company Price 2019E 2020E P/E 19 P/E 20 2019E 2020E P/FFO 19 P/FFO 20FRT Federal Realty Investment Trust $132.08 $3.49 $3.33 37.8 39.7 6.3 6.63 20.83 19.92LPT Liberty Property Trust $58.76 $1.47 $1.41 40.0 41.7 2.5 2.67 23.13 22.01MPW Medical Properties Trust $19.42 $0.85 $1.10 22.8 17.7 1.3 1.60 14.71 12.14OHI Omega Healthcare Investors $41.23 $1.00 $1.20 41.2 34.4 3.0 3.20 13.93 12.88STOR Store Capital Group $39.18 $1.04 $1.01 37.7 38.8 2.0 2.07 20.09 18.93

Average 35.9 34.4 18.5 17.18

IRM Iron Mountain $34.37 $1.04 $1.23 33.0 27.9 2.2 2.4 15.4 14.44

Implied Value: Relative P/E (EPS19) $ 37.35 Relative P/E (EPS20) 42.35$ P/FFO 19 41.34$ P/FFO 20 40.88$

Iron MountainKey Management Ratios

Fiscal Years Ending Dec. 31 2016 2017 2018 2019E 2020E 2021E 2022E 2023E

Liquidity RatiosCurrent ratio 1.06 1.47 0.83 0.83 1.17 1.69 2.17 2.61 Quick ratio 0.89 1.32 0.69 0.70 1.05 1.56 2.05 2.49 Operating CF ratio

Activity or Asset-Management RatiosTotal asset turnover 0.37 0.35 0.36 0.37 0.39 0.36 0.35 0.34 Accounts receivable turnover 5.08 4.60 4.99 4.69 4.57 4.50 4.43 4.36 Net working capital turnover 0.12 0.16 0.27 0.70 0.81 0.81 0.80 0.78

Financial Leverage RatiosDebt ratio 0.80 0.79 0.84 0.85 0.79 0.71 0.64 0.57 Debt to equity ratio 3.90 3.77 5.29 5.66 3.73 2.44 1.76 1.35 LT debt to aasets 0.64 0.63 0.68 0.67 0.60 0.53 0.46 0.40

Profitability RatiosGross margin 0.14 0.17 0.18 0.25 0.29 0.31 0.32 0.34 Free cash flow margin (0.37) (0.19) (0.25) 0.23 0.23 0.17 0.19 0.23 ROA 0.01 0.02 0.03 0.09 0.11 0.11 0.11 0.11 ROE 0.05 0.08 0.19 0.60 0.52 0.38 0.30 0.25

Payout Policy RatiosDividend Payout 4.44 3.29 1.87 1.87 1.87 1.87 1.87 1.87

Effects of ESOP Exercise and Share Repurchases on Common Stock Balance Sheet Account and Number of Shares Outstanding

Number of Options Outstanding (shares): 2,393Average Time to Maturity (years): 5.97Expected Annual Number of Options Exercised: 401

Current Average Strike Price: 34.51$ Cost of Equity: 4.64%Current Stock Price: $34.37

2019E 2020E 2021E 2022E 2023E 2024EIncrease in Shares Outstanding: 401 401 401 401 401 389Average Strike Price: 34.51$ 34.51$ 34.51$ 34.51$ 34.51$ 34.51$ Increase in Common Stock Account: 13,833 13,833 13,833 13,833 13,833 13,418

Change in Treasury Stock 0 0 0 0 0 0Expected Price of Repurchased Shares: 34.37$ 35.97$ 37.64$ 39.38$ 41.21$ 43.12$ Number of Shares Repurchased: - - - - - -

Shares Outstanding (beginning of the year) 286 687 1,088 1,488 1,889 2,290Plus: Shares Issued Through ESOP 401 401 401 401 401 389Less: Shares Repurchased in Treasury - - - - - - Shares Outstanding (end of the year) 687 1,088 1,488 1,889 2,290 2,679

VALUATION OF OPTIONS GRANTED IN ESOP

Ticker Symbol IRMCurrent Stock Price $34.37Risk Free Rate 1.92%Current Dividend Yield 7.40%Annualized St. Dev. of Stock Returns 25.00%

Average Average B-S ValueRange of Number Exercise Remaining Option of OptionsOutstanding Options of Shares Price Life (yrs) Price GrantedRange 1 2,393 34.51 5.97 2.88$ 6,885$ Total 2,393 34.51$ 5.97 7.87$ 6,885$