MANAGEMENT REPORT

Information about the business

OXE Marine AB (publ) has, after several years of development, constructed the OXE Diesel, the world´s first diesel outboard engine in the high-power segment. OXE Diesel has a unique belt driven propulsion system that allows a hydraulic multi-friction gearbox to be mounted. This means that the engine can handle significantly higher loads than a traditional outboard engine. OXE´s OXE diesel has a horizontally mounted engine as opposed to a traditional outboard with a vertically mounted engine.

All products developed by OXE are built on the core value of Engineering the Future. The OXE Diesel product line is no exception. Utilizing modern diesel powerheads from the automotive industry, heavy duty gearbox design and patented belt transmission system provides for robust outboards with inboard features and high torque capacity.

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 stronger and, above all, a more fuel-efficient engine.

Significant events during the financial year

OXE Marine AB (the "Company”) announced the following significant events during the year:

• The Company initiated the relocation of assembly of OXE125-200 which was commenced by ONM in Albany (GA, USA).
• The Company’s Board of Directors resolved to appoint Magnus Grönborg as CEO and to reorganize its management team by appointing the previous CEO Myron Mahendra as EVP Business Development, Sales and Marketing. In addition, the Chairman of the board Anders Berg increased his operational focus on the Company by assuming a supportive operational role with the management team.
• The Company’s first units of OXE300 assembled and shipped from PanLink’s Polish site in Tczew.
• The Company announced outcome of incentive program 2021/2025 and additional transfer of warrants of series 2019:2.
• The Company carried out a directed share issue of SEK 22.8m.
• The Company entered into an agreement to acquire 100% of Diesel Outboards and Outdoor Network Manufacturing’s US distribution and manufacturing business. The purchase price of USD 10.8 million, was financed through a share issue in kind to the selling entity Powersports Plus LLC (an Outdoor Network Group Company), making them the largest shareholder in OXE. The transaction was completed on 16 February 2022.
• During December and in conjunction with the transaction it was announced that Magnus Grönborg decided to step-down as CEO. Magnus served as CEO until 16 February 2022 and will focus on strategic projects. Anders Berg took on the role of CEO as of 16 February 2022 and continues the outstanding work that Magnus has done.

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, with the acquisition of Diesel Outboards, OXE 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.