v

CREATING THE NEXT

INDUSTRIAL REVOLUTION
FEBRUARY 2016

www.MemexOEE.com
FORWARD-LOOKING STATEMENT
Certain statements in this disclosure may constitute forward-looking statements which involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by such forward-looking statements.

When used in this disclosure, such statements use such words as may, would, could, will, intend, expect, believe, plan,
anticipate, estimate, and other similar terminology. These statements reflect the Corporations current expectations regarding future events
and operating performance and speak only as of the date of this disclosure. Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or
not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-
looking statements, including, but not limited to, the factors discussed below.

For example, disclosures may contain forward-looking statements pertaining to the following subject matter: capital expenditure programs;
supply and demand for the Corporations products and services and industry activity levels; commodity prices; income tax considerations;
and, treatments under governmental regulatory regimes.

No securities commission or other similar regulatory authority has passed on the merits of the securities described herein. Nor has any
securities commission or similar regulatory authority reviewed this presentation and any representation to the contrary is an offense.

All dollar figures are in Canadian currency unless otherwise stated.

Creating the Next Industrial Revolution 2

REASONS TO OWN OEE
Planted in the heart of a global mega-trend

Achieves payback in less than four months with an

Internal Rate of Return (IRR) greater than 300%

A $30 million business inside its existing install base

Has strategic alliances with multinational industry

giants Cisco and Mazak

Insiders own 35% of shares

Creating the Next Industrial Revolution 3

MARKET CAPITALIZATION
Trading Symbol TSX-V: OEE
Price (February 22, 2016) $0.135
52 Week High / Low $0.28/ $0.085
Shares Issued & Outstanding 99.5 M
Warrants & Options 30.0 M 1, 2
Total Shares, Warrants & Options 129.5 M
Market Capitalization $13.43 M
Last Capital Raise $3.9 million (June 2015)
Insider Ownership 35.1%
Non-Insider Founders 10.2%
Independent Directors 5.1%

Analyst Coverage
Clarus Securities Noel Atkinson
Beacon Securities Gabriel Leung
1Average strike price $0.196
2# @ avg strike price by expiring fiscal yr: 2016 7.3M @ $0.158; 2017 19.5M @ $0.22; 2018 850k @
$0.10; 2019 664k @ $0.141; 2020 1.3M @ $0.15.

Creating the Next Industrial Revolution 4

 A TRILLION-DOLLAR MEGA-TREND

$6.1 Trillion
in US alone
The industrial Internet of Things (IIoT) will bring new
economic growth, reinventing sectors that account for
almost two-thirds of world output.
The potential economic benefits of the IIoT may be
massive, but they are by no means guaranteed. Are
companies prepared to take full advantage of
this opportunity?

Creating the Next Industrial Revolution 5

THE INDUSTRIAL INTERNET OF THINGS
Manufacturers can take huge
advantage of IIoT technology

Competitive advantage comes from

machine-to-machine (M2M) connectivity

IIoT applications like MERLIN

connect, collect and analyze streams of
manufacturing data in real-time

MERLIN connects machines

to create actionable information

Creating the Next Industrial Revolution 6

THE MERLIN VALUE PROPOSITION
MERLIN IS AN IIOT SHOP-FLOOR
-TO-TOP-FLOOR-COMMUNICATIONS
PLATFORM THAT PROVIDES
MANUFACTURING ANALYTICS IN
REAL-TIME.
SPECIFICALLY, MERLIN:
Delivers a 10%-50% average productivity
increase
Earns 20%+ profit improvement based on just a
10% increase in Overall Equipment Effectiveness
(OEE)
Achieves payback in less than 4 months with an
Internal Rate of Return (IRR) greater than 300%
Connects to any machine, utilizing MTConnect,
other protocols, or MERLIN hardware adapters
for older machines
Creating the Next Industrial Revolution 7
MERLIN PROVEN IN PLANTS WORLDWIDE

Creating the Next Industrial Revolution 8

$320 BILLION ADDRESSABLE MARKET
16 million Computerized Numerical Control (CNC) INSTALLATION
machine tools installed globally (ARC Advisory) LOCATION
3 other support assets typically associated with each 35%
30%
industrial machine tool Europe
North
America
Only 2% to 3% of todays assets are connected
5%
South 30%
Main verticals are aerospace and automotive. Others: America China &
packaging, food & beverage, product assembly ROW

Typical opportunities in the MEMEX customer base

# of Factories # of Machines MERLIN installs
Customer #1 12 1000 16 Machines, 1 Factory
Customer #2 14 600 9 Machines, 1 Factory
Customer #3 8 485 14 Machines, 1 Factory
Customer #4 7 285 30 Machines, 2 Factories
Customer #5 7 158 6 Machines, 1 Factory
Average sales price for MERLIN $4,000 / Machine Installed
Gross margins 70%+ Presently (Run rate to profitability)
Average # of factories from 100 clients = 7 (25 machines per factory)

Creating the Next Industrial Revolution 9

WHY OEE MATTERS IN THE IIOT ERA
MERLIN delivers OEE and many
other valuable metrics

OEE is now the most important metric

in manufacturing

OEE = (Availability) x (Quality) x

(Performance)

World-class OEE of 85% is entirely MERLIN OEE Dashboard

achievable with MERLIN

Creating the Next Industrial Revolution 10

WHAT DRIVES DESIRE FOR OEE?
Replace manual, subjective data
collection with automatic, objective
data collection

True visibility means shining a light

on dark production assets

The opportunity to take manufacturing

productivity to the next level
MERLIN reveals hidden factories
Prior to installing MERLIN, many customers have
admitted that while they were running their plants
24x7, they could only produce data on 20 out of 24
hours with the clipboard-and-spreadsheet method.

Creating the Next Industrial Revolution 11

IMPORTANCE OF MTConnect FOR IIoT
The Bluetooth of manufacturing,
MTConnect enables IIoT connectivity

MTConnect allows manufacturing

equipment to speak to the outside world
via XML/HTTP

Most new machines can use

MTConnect out of the box. For legacy
equipment, MERLINs hardware
ensures no machine is left behind as
you embrace strategic value of IIoT
Mazak's MTConnect implementation provided
the highest ROI for any capital investment
because of the significant increase in utilization
of equipment for a very moderate expenditure.
Brian Papke, President of Mazak USA

Creating the Next Industrial Revolution 12

CASE STUDY: MAGELLAN AEROSPACE
Pilot installation of MERLIN on 3
machine assets in one plant

$20,000 investment in MERLIN

resulted in $480,000 of additional
production in the first year

Payback in 20 days led to further

expansion of MERLIN

MERLIN identified idle time to its root

cause and converted it back to
production. Increased revenue per
asset and margin per part

Creating the Next Industrial Revolution 13

CASE STUDY: ROSE INTEGRATION
Typical situation with no network on
shop floor and very little visibility on
machine productivity

Started with 6 machines then decided

to implement MERLIN on all 30
machines in the plant

Thanks to MERLIN reports was able to

accurately track stops and starts

OEE surged from 40% to 82%

Creating the Next Industrial Revolution 14

CASE STUDY: MAZAK
Mazak is the worlds #1 machine tool
OEM committed to IIoT

MERLIN installed throughout Mazaks

800,000 sq. ft. plant in Florence, KY

GOAL: 1% productivity improvement.

ACHIEVED: 42% boost in machine
utilization in the first six months

Mazak has MERLIN on its price list,

and made MEMEX a VIP Partner
critical to its iSmart Factory initiative

Creating the Next Industrial Revolution 15

MEMEX FINANCIAL HIGHLIGHTS
All figures in CAN$ Q1/2016 Q1/2015 2015 2014 2013

Revenue $614 K $501 K $1.93 M $940 K $690 K

Gross Margin 61.1% 58.8% 58.9% 42.7% 85.7%1

EBITDA ($647 K) ($425 K) ($2.32 M) ($1.74 M) ($400 K)

Cash loss from ops2 $628 K $407 K $2.03 M $1.52 M $290 K

1 Excludes Customer Service Costs

2 Excludes interest, depreciation, public listing costs, stock based compensation, asset impairment

Creating the Next Industrial Revolution 16

GO-TO-MARKET STRATEGY
MEMEX direct sales focused on North America from HQ

MEMEX distribution channels amplify direct sales efforts

Value-added resellers/distributors:

Mazak #1 global OEM uses

MERLIN and is an active reseller
Mazak Optonics Laser division of
Mazak is also a reseller
Okuma #2 global OEM machine
tool builder

Creating the Next Industrial Revolution 17

CISCO IIoT STRATEGIC PARTNERSHIP
SmartBox billed as an industry-first
platform for easy and highly secure IIoT

Running today in Mazaks factory,

SmartBox is a Mazak/MEMEX/Cisco
cyber-security offering

SmartBox satisfies the highly critical

security concerns of IT departments
when connecting equipment to a plant's
main network

Creating the Next Industrial Revolution 18

 LEADERSHIP TEAM
MANAGEMENT BOARD OF DIRECTORS
David McPhail President & CEO Peter Lacey Executive Chairman, Cervus
Equipment Corporation
David Edstrom CTO
Robert Chafee Chairman, Tonolli Canada Inc.
John Rattray VP Sales
Richard Morley Technology entrepreneur
Nathan Rudyk VP Marketing
Joe Brennan Partner, Shea Nerland Calnan LLP.
Ed Crymble CFO
Scott Kaplanis Partner & Portfolio Manager, Epic
Rick Mosca COO Capital Management Inc.
David McPhail Founder, President & CEO,
MEMEX Inc.
Edward Crymble CFO, MEMEX Inc.

Creating the Next Industrial Revolution 19

MEMEX IN THE MEDIA

20
INVESTOR CONTACTS
Memex Inc. Investor Relations
www.MemexOEE.com Sophic Capital

David McPhail Sean Peasgood

President & CEO President @ CEO
david.mcphail@MemexOEE.com sean@SophicCapital.com
905-635-1536 416-565-2805

Creating the Next Industrial Revolution 21

THANK-YOU.
QUESTIONS?