MANAGEMENT REPORT
Information about the business
OXE Marine AB (publ) was formed in 2012 and after several years of development has developed a diesel outboard for the marine market. The head office is located in Ängelholm, Sweden. OXE Marine AB is listed on Nasdaq First North Growth Market, ISIN SE0009888613. The global outboard market has long been dominated by gasoline engines, but with a diesel engine you get a more fuel-efficient engine in addition to carrying a less flammable fuel source on-board bringing many safety benefits to the end user. The OXE engine is based on marinizing automotive engines, enabling end users to lower their emissions levels compared to conventional gasoline engines as well as giving customers in certain regions to run on fossil-free diesel alternatives such as HVO100 which significantly reduces the CO2 footprint of the end user.
Several attempts have been made to develop outboard engines for diesel fuel, but the difficulty lies in developing a
sufficiently strong design for power transmission between the engine and the propeller. The patented belt propulsion ’lower-leg’ is at the core of OXE Marine’s unique technology. OXE Marine's outboard engine, OXE Diesel, is the first diesel outboard that is capable of replacing the well-established gasoline outboards in the higher power levels, in commercial and governmental operations. The engine is based on a modular platform that has been configured for a horizontally mounted engine, similar to a traditional inboard configuration and unlike traditional outboards that have vertical engine installations. OXE Marine's unique technology has offered a solution to the many users around the world requiring a diesel outboard. Among other things, the North Atlantic Treaty Organisation (“NATO”) introduced a directive, the Single Fuel Concept to maximize equipment interoperability through the use of a single fuel, which includes phasing out gasoline-driven equipment in favour of diesel engines.
Significant events during the financial year
OXE Marine AB (the "Company”) announced the following significant events during the year:
- The Company announced on February 15, 2023 that it has developed a concept engine with hybrid drive that combines the diesel drive of OXE Marine outboards with electric drive and thus offers even lower fuel consumption and carbon dioxide emissions.
- The company's diesel-powered outboard with water jet propulsion, which was developed together with JET-TECH, was nominated as one of the innovations of the year at the International Boat Show in Miami. The engine is one of the world's most powerful outboards with water jet propulsion and has been made possible thanks to OXE's proprietary power transmission system that can handle very high torques.
- The company expanded their footprint in Asia by appointing creation CO., LTD as dealer for Japan.
- The company expanded in south America by appointing new distributors in Brazil and Colombia.
- The company introduced the OXE configurator, that allows the customers to customize their OXE Diesel Outboard.
- The company appointed Paul Frick as new CEO.
- The company received orders worth SEK12M (USD1.1M) from United States DLA.
- The company expanded in North America by appointing new distributor in Mexico.
- The company received an order from its exclusive distributor in the Philippines of approximately SEK 9 m (EUR 0.9 m) as a result of an award from the Philippines Coast Guard, total scope 80 engines.
- The company announced collaborations with Punch Torino.
- The company received orders worth SEK 63 M (USD 5.8 m) to supply a United States Governmental Agency.
- The company announced collaboration with control system manufacturer Uflex.
- The company carried out a directed share issue of SEK 30.2 million (SEK 29.3 m after transaction costs).
Future prospects
OXE Marine's future growth is dependent on the Company developing and producing sustainable products. The
Company continues to explore new technologies, including electric and hybrid solutions with the aim to be at the forefront of outboard marine technology. The Company continues to develop an organization that works in a structured and efficient way with quality and innovation. Additionally, OXE has strengthened its position in the US market, creating a direct to market model, gaining access to end-user, dealer, governmental and OEM networks. This, in combination with new ongoing development projects, supports management’s assessment that demand will continue to be strong from the market.
NOTE: The English version is a translation of the Swedish version, for any inconsistencies in the translation refer to the Swedish version.