During the fourth quarter, OXE continued to execute on the strategy as decided during Q3 2021, increasing the focus on end-customers and their product experience, expanding the core business, and setting a plan for an increased presence and deepened partnerships in selected markets. During the quarter, OXE Marine AB decided to join forces with US distributor Diesel Outboards and Outdoor Network Manufacturing to significantly strengthen the focus on commercial and distribution development.
Over the last months, we have reviewed our strategic position and core competencies of OXE, both from a product and organizational perspective. Stemming from that review, it is clear that we must further develop the commercial side of our business to complement our strong engineering background as well as the recent progress made in our supply chain and production capabilities.
With the sustainable, disruptive and innovative products we have introduced to the marine market, we now want to intensify the focus on our end-users and customers, working substantially closer with them. With this deal we are confident that a direct model, offering direct relationships with the users and customers, combined with our current distributor model, will provide significant insight into the next steps of our growth and development. Close relationships with users and a full focus on leading service and support packages is imperative for our success.
Diesel Outboards has been very skilled, loyal, ambitious, and successful in their development of the market and have an impressive organization with significant application knowledge, complementing our current business with a passionate and seasoned marine team that we all welcome to OXE.
At the same time, we are very pleased to welcome Outdoor Network LLC (via Powersports Plus LLC) as the new industrial and majority owner of OXE.
No doubt, this is transformational for OXE, and we now have an operational and commercial platform in both Europe and USA that will serve as a steppingstone for further global growth. I am personally excited to see the innovation, growth, new business and products that this transaction will unlock for the future of OXE – we now really take the next step in our development.
The joining of our two companies through this merger will greatly strengthen OXE’s position in the marine diesel outboard world. With OXE’s superior engineering capabilities and Diesel Outboard LLC’s industry knowledge and advanced sales and marketing expertise, we are confident there will be a significant global increase in demand for OXE’s products. As one company, we solidify OXE’s position as the go-to trusted partner in the growing market for high torque and high horsepower diesel outboard motors.
The transaction aligns our core competencies with those of Diesel Outboards. By effectively acquiring our distributor who is solely focused on developing the OXE brand in the US, we gain additional margin and develop our capabilities to increase sales of engines and parts & accessories in the US. Diesel Outboards has a healthy order book towards its dealers and OEM’s in the US. We expect a positive contribution to operating leverage in 2022 from the businesses Diesel Outboards and Outdoor Network Manufacturing. The transaction therefore further supports the hard work we have done in 2021 to control the Burn Rate and increase operating leverage in order to reach profitability in a steady manner.
From a cashflow point of view, the transaction is positive and will release cash in the short term, through cash transferred in the acquisition, as well as by delivering on the US order book in 2022, with inventory transferred in the acquisition. In addition, we will put in place a USD 5m revolving credit facility in the US in the event further financing is needed for working capital to support growth in sales.
I have had the pleasure to work with Magnus over many years, not only in OXE Marine, and got to know Magnus very well. I fully respect his personal situation and no doubt, we have all enjoyed working with Magnus in his capacity as CEO and he has done an excellent job.
By using advanced proven waterjet engineering and design capabilities, augmenting the innovative OXE Diesel design, we completely redefined outboard motor propulsion and performance. The Jet-Tech® unit is designed to grow with our expanding product line as it is a fully scalable product. The patented design will expand into the vertical shaft diesel/gas outboard waterjet applications and inboard waterjets.
The Oxe Diesel Outboard was originally designed for the commercial and government users and is now expanding into other marine markets. We have seen the offshore center console community wanting greater range, better fuel economy, mega yacht tenders needing SOLAS certification as well as the need for the removal of gasoline bunkering, while the commercial and government users need the safety of diesel, and the commonality of global fuel standardization. They all want and need torque to move the larger and heavier vessels that were traditionally powered by gasoline outboards and inboard engines but many desire the choice of diesel outboards and now, combined with Jet-Tech Propulsion LLC´s capabilities, they can also get diesel outboards with waterjet.
The third quarter was characterised by an intense focus on delivering results according to plan, with excellent operational execution. OXE managed to increase sales and improve gross profit compared to second quarter 2021, plus generate highest sales in a quarter for Parts & Accessories.
In spite of a very challenging global supply chain situation, our dedicated team has been able to plan, validate and execute our ramp-up of operations without any stops during the quarter. However, parts of our supplier base have struggled to keep up with our planned increase in demand, which has led to a lower pace of ramp-up than expected. In order for us to increase visibility and hence the quality of our promises to customers, we will work even closer with these suppliers, also supporting increased stock levels of the most crucial components. In order to enable this, we decided to carry out a directed share issue.
I have followed the Company for some time as we are both active in the same local region in Skåne. I hope to be able to contribute with my network, competence and knowledge to build an even stronger OXE Marine.
We continue to see more positive activity from our distribution network through improved marketing initiatives as well as demo programs with key commercial and governmental customers and we clearly see a growing interest and demand in general in the market.
We are driven by the ambition to transform the outboard motor; impacting the journey towards a more sustainable and ecologically positive marine environment.
We continue to see strong demand for the OXE, the company increased its Order Book by 38% to SEK 139.3m at the end of Q4...
I’m very pleased to welcome Magnus Grönborg as our new CEO, to lead the Company through the imminent ramp-up of production in two continents. With his excellent leadership skills, I’m confident that Magnus will ensure strong execution of OXE’s strategy to supply the most durable outboard on the market. At the same time, I want to emphasize the board’s deep appreciation of Myron Mahendra’s contributions as CEO over the recent years, which have been instrumental in taking the company to where it is today. In his new role, Myron will have the focus to further develop the company’s relationships and position on the market, which will be key to our continued growth.
Our strategic decision of moving the OXE200 production away from UFAB is well underway and it was announced recently that the chosen facility is based in Albany, Georgia in the south east of the US with Outboard Network Manufacturing (ONM) as our assembly partner. Our parts have now been shipped from Sweden and we expect to start production in January 2021.
We are honored and thrilled to focus our experienced team on building a flagship sales and service operation as new OXE Diesel Dealers as part of the Diesel Outboards family in the Tampa Bay Area. Our team is ready to support the Government, Commercial, and private customers in the region.
I’m very happy that our continuous R&D focus is showing progress and to be able to expand further into the electrification of the marine segment. This patent will allow the use of twin electric motors, which can be packaged into a smaller envelope while simultaneously allowing for different torque and rotations per minutes to be transmitted to each individual propeller, thereby increasing the overall efficiency even more. Additionally, it covers OXE’s existing belt technology and conventional technology while also providing redundancy in case of failure with one electric motor
Evoy’s high output electric propulsion systems should be a great fit towards OXE Marine AB’s belt driven lower legs – designed for the higher torque from diesel and electric motors - and we are excited to see what it can do. This fits well into Evoy’s vision of eliminating boating emissions globally, and our goal is to start with the commercial market, like OXE Marine AB. Later we will move into the larger recreational market as battery technology and prices steadily improve
OXE Marine AB’s vision is the global adoption of its patented belt propulsor concept with a mission to dramatically reduce exhaust emissions in the marine outboard segment. We believe that partnering with Evoy in delivering a high quality and efficient electric marine propulsion system is an important step towards meeting our goals. We see many potential applications for an electric outboard, including emission regulated inland water and lakes, geo parks, wildlife exploration, super yacht tenders and many others
I’m very happy with the appointment of ODN as our exclusive distributor also for the South East US. Over the last year, ODN has proven its ability to create demand for the OXE in the US and ODN genuinely shares our enthusiasm for revolutionizing the global high poweredoutboard market. Together with our manufacturing agreement with Outdoor Network Manufacturing and the significant order for 2021, I’m confident that our partnership has the ability to unlock the full potential for the OXE in the US.
We are delighted to be moving up to OTCQX, after only trading on the OTCQB market in under a month. Our recent results and news flow have been encouraging and this has led to a more positive Investor sentiment. Additionally, the upgrade to OTC market’s top tier represents an advantage to investors and a step towards increasing the liquidity of our stock.
This is a great result of joint cooperation with the Russian Rescue Service and the teamwork done by Diesel Export LLC
We appreciate the trust the customer demonstrates into the innovative and unique technology applied on the OXE Diesel Outboards. The support provided by our Russian distributor, Dizel Export LLC for the test and validation period has been instrumental to secure this order. I have no doubts this will be the first of many more orders to come from Russian governmental and commercial customers as the OXE Diesel continues to prove being a product specifically designed to the needs of these customers.
Developing the engine hardware and software calibration for the successful homologation process has been a challenge for all involved in the project. The target for the emissions and fuel consumption were already set in the planning phase of the OXE300 project. It is very satisfying to see that the project team has managed to meet emission levels and still excel the targeted fuel consumption
We are looking forward to building on our longstanding and beneficial relationship with the USCG. The OXE Diesel offers the durability, performance and fuel economy of diesel engines along with the advantages of outboards making it a great solution for military and commercial markets. We have supported the US military for many years and we are excited to bring them this innovative product.
We are extremely pleased with the outcome of this first commercial order from the United States Coast Guard. The support provided by our US distributor, Mack Boring & Parts, during the test and validation period with the USCG has been instrumental and would like to thank them for their efforts and patience. I have no doubts this will the first of many orders and we look forward to servicing the US government – they are potentially by far the largest consumer in the global governmental market for the power range of our product.
This is an exciting time for OXE Marine as it launches its latest product, the OXE300 diesel outboard. It’s patented product portfolio, including the OXE200 series, is sought after by Government and Commercial users. The Company is to establish a production facility in the US at the beginning of 2021 as it expects a significant part of its revenue stream to be generated in North America. Quite naturally, the company has had investor interest from the US for some time – the solution of trading its shares on the OTCQB International Market will make it easier for them to join OXE Marine’s exciting growth journey
We believe that China has a vast demand for innovative, high powered, high quality diesel outboards. OXE is an exciting company with important products that are likely to attract the interest of Chinese ship builders as well as commercial and governmental users.
I am really pleased that Parsun, the largest Chinese outboard manufacturer, has chosen to work with OXE Marine in promoting and distributing our products in Mainland China. I was impressed with their due diligence and their focus on quality and customer care. Both parties are keen to continue the collaboration and in due time deepen the relationship in the Chinese market. This is an important step for OXE as we see China as a core market going forward.
I am really pleased of our collaboration with the BMW Group with respect to the OXE300 Bison project. They have set the example of an ideal collaboration partner, providing all the necessary resources and support in making not only the development of the product a success but also assisting with production standards and promoting the product from a sales and marketing standpoint. Not surprisingly, both parties are keen to continue their collaboration and have entered into a PDA to assess the marinization of 4-cylinder diesel engine for the next generation of the OXE200 series – I am confident the powerhead will meet all our requirements and am excited for our future as we continue to improve and broaden our product offering
OXE Marine offers the BMW Group a chance to re-enter the marine business after several years of absence. We therefore decided to take up the challenge and support this outstanding development project transforming a BMW 6-cylinder automotive diesel into an outboard engine. It turned out to be a very professional collaboration with OXE Marine in all aspects with a very unique product as an outcome, especially since the state of the art BMW-Diesel Technology helps to significantly reduce the CO2-Footprint of outboard engines. Therefore, we are looking forward to the next challenge using the 4-cylinder diesel engine as a basis for the OXE200
OXE Marine has achieved decent sales during this challenging period, increasing its order book whilst reducing its cost base. The attractiveness of our product line is apparent, and we will now resume our investments in meeting the Company’s growth projections for the rest of the year and beyond. Our business partners have continued to show their strong support and confidence in OXE Marine and its products throughout this period and am very excited of our future
The OXE Diesel is designed to be a vital part of marine operations that will help reduce cost and minimise the impact on the environment. The OXE300 is a statement of this commitment, a result of everything we have learned up to this point.
The selection of our manufacturing partner has been a thorough and detailed process. This transaction advances OXE Marine’s leadership in the marine market while placing an extensive presence in the Americas and meeting its increasing demand for our product, especially in the US. ONM brings a talented, experienced and customer-focused management team along with experience and when combined with our team at OXE clearly places our diesel outboard motors on the leader board.
We are very proud to have been selected as the USA manufacture by OXE Marine. This collaboration will strengthen the manufacturing process in a world class facility. It is extremely satisfying knowing that we will be supplying the market globally with the best products, creating jobs and securing the supply chain for end users. It is great to leverage on our capabilities with OXE Marine while manufacturing the best and most innovative diesel outboard made in the USA,
I am delighted to announce Jerry Ojala as Cimco Marines's COO. He has a strong experience in Supply Chain Management and brings with him significant knowledge within the manufacturing and logistics industry particularly from Saab and Opel. This also now concludes my appointment of senior managers at Cimco and I am very confident of our teams ability and experience to deliver our long term business strategy
I am very pleased that the management team shares my strong confidence in Cimco’s potential. Internally, we will be working hard to meet our immediate targets and long term goals.
I am extremely pleased to have EIB as our funding partner. The receipt of Tranche A is an important step in meeting our growth ambitions and in funding our continued development of a new family of diesel outboard engines, inter alia the OXE 300 that will have its world premiere on the Genoa Boat Show on 19 to 24 September 2019.
With our motivated and dedicated design and verification teams we have been able to deliver a pre-production engine, ready to be displayed and tested on the water at the Genoa Boat Show, 5 months before planned market launch
We are now particularly proud to present the new OXE 300 setting the benchmark for 300hp outboards. When designing the OXE 300 the collective operative experience from hundreds of OXE Diesel Outboards currently in operation was duly utilized to secure highest levels of reliability, robustness and maturity. Our specific commercial clientele deserves the best possible performance and economic advantages whilst complying with the most stringent environmental rules and regulations. For the commercial operator Endurance, Reliability, Power and Control of the OXE 300 is key
I am sure that those end users that have been waiting for OXE Diesel availability and support within this region will be very happy. Rama with its extensive service network and reputation for after sales support as an established John Deere distributor is a great addition to our global network of distributors. We look very much forwards to working together and bearing fruit in projects already underway
We are very excited to be part of the CIMCO MARINE family; we believe that this partnership can arise great interest in the Italian outboard motor market. OXE products are very good: top quality, quiet, very comfortable and respectful for the environment. This is certainly a novelty for the marine industry in Europe and a completely new concept in Italy, the firsts feedback received from important players are positive. Therefore we are confident to open a good business in our country soon.
I am delighted to announce Paul Frick as Cimco Marines's next CFO. He has a strong background in finance with the ability to drive a business oriented CFO agenda. He brings with him experience from finance within the manufacturing and logistics industry as well as experience within the private equity and auditing pratcises. During his career, Paul has also had exposure related to financial reporting to capital markets
The EU is determined to deliver on its commitments to reduce greenhouse gas emissions, and we are working with Member States on their plans to become carbon-neutral by 2050. Cimco’s outboard engine project drastically reduces emissions, while enabling the coast guard and rescue police who use the heavy-duty engines to continue carrying out their work at sea.
I am extremely pleased to have EIB as our funding partner. The loan will support us in meeting our growth ambitions, through investment in working capital needs, expanding production capacity and increasing our sales and marketing initiatives. Additionally, the company will use the funds to develop its product range whilst improving its efficiency, thereby lowering emission further, as well as reducing other pollutants. Our overarching goal is to continue improving the design of our belt propulsor concept with the aim of significantly reducing the carbon footprint in the high powered outboard marine segment”
Per has the right technical expertise and experience to meet the high demands on quality, user-friendliness and endurance of our products. In addition, his passion, drive and focus will ensure we continue with a high performance work culture in Cimco
I’m thrilled being assigned the task of leading the technical development of Cimco Marine and the unique product range. Having worked with marine diesel engines the past 20 years, the solution designed by Cimco Marine is by far the most efficient and user friendly I’ve ever come across
The company has developed a sought after product and is still continuing to develop and extend its product range. I look forward to making a positive contribution and, together with management and employees, to achieve the long term objectives of the company in the high powered diesel outboard segment
Ralf has the right skills and experience to meet Cimco Marine AB sales targets and broaden OXE diesel market appeal