#1IFI PUBLIC EXPOSE PT Indonesia Fibreboard Industry Tbk ("the Company") Jakarta, 10 December 2021#2COMPANY PROFILE 2 IFI#3ABOUT US ■ Construction of business locations 2010 2007 IFI Certification of ■ Certification of ■ Confirmity SNI ISO 9001:2008 Confirmity JIS 2013 A5905 (U-Type) 2015 ■ Certification of Confirmity US EPA 40 CFR Part 770 TSCA Title VI 2017 First Production of Plywood Initial Public Offering (IPO) 2019 ■ Commencement of construction of the second MDF Line Production Facility 2021 2012 2014 2016 2018 2020 The Company was established ■ The First Production of MDF ■ Timber Verification and Legality Certification (SVLK) ■ Certification of Confirmity of CARB ■ Glue Factory Construction ■ Certification of Confirmity JIS A5905 (M- Type) ■ Veneer Line Construction ■ Certification of Confirmity JIS A5905 (P-Type) ■ Blue Rating Certification for the 2017-2018 Period ■ SMB Kenzai Co.,Ltd, Noda Corporation and Ishinomaki Plywood Mfg Ltd become the Company's Shareholders ■ Blue Rating Certification for the 2019-2020 Period 3#4VISION AND MISSION OF THE COMPANY VISION To be a world class Company in the wood panel industry. Core Value MISION Continuous improvement to produce best quality wood panel which will be benefit for society, partnership and earth for a better future. ■ Growing together with Stakeholders; ◉ ◉ Striving for the best; Respecting each other as a member of the teams; and Responsive to changes. IFI#5COMPOSITION OF SHAREHOLDERS As of 30 November 2021 Number of shared issued and fully paid Amount % (Rp) PT Adrindo Intiperkasa SMB Kenzai Co. Ltd 4.800.200.000 2.353.000.000 51,00% 480.020.000.000 25,00% 235.300.000.000 Noda Corporation Heffy Hartono Ishinomaki Plywood MFG. Co., Ltd Others (each with ownership interest below 5%) 562.600.000 5,98% 56.260.000.000 350.000.000 3,72% 35.000.000.000 350.000.000 3,72% 35.000.000.000 Total 996.200.000 9.412.000.000 10,58% 99.620.000.000 100,00% 941.200.000.000 Number of Number of As of 30 November 2021 Investors % Shares % Foreign Institutions Local Institutions Foreign Individuals Local Individuals Total 5 0,34% 3.053.018.100 32,44% 3 0,20% 5.505.173.600 58,49% 1 0,07% 30.500 0,00% 1.459 99,39% 853.777.800 9,07% 1.468 100,00% 9.412.000.000 100,00% 5 IFI#6BOARD OF COMMISSIONERS AND DIRECTORS Surja Hartono Atsushi Takahama Sumarni President Commissioner Commissioner Independent Commissioner Heffy Hartono President Director Ang Andri Pribadi Thomas Verdiyanto Director Director Takuji Okamoto Director 6 IFI#7THE COMPANY'S BUSINESS ACTIVITIES 7 IFI#8LOCATION AND BUSINESS ACTIVITIES OF THE COMPANY IFI Wood Panel Industry and Others The main activity of the Company is the wood processing industry, especially Medium Density Fibreboard (MDF), Veneer, Plywood and others. The Company is one of the largest MDF producers in Indonesia, and has exported to various countries in the world. The factory is located in Mendis Jaya Village, Bayung Lencir, Musi Banyuasin Regency, South Sumatera. The factory location occupies a land area of 50 ha. COMPLEX MODERN FACTORY OF THE COMPANY 80#9PRODUCTION FACILITIES MDF LINE Capacity: 250.000 M3/year REFINER SANDING COOLING STACKING & HANDLING SYSTEM VENEER PLYWOOD LINE ENERGY PLANT CENTRAL WAREHOUSE LOG YARD Capacity: 20.000 M3/year Capacity: 25.000 M3 Capacity: +90.000 M3 9 IFI#10SUPPORTING FACILITIES MAIN JETTY Crane Capacity: 40 ton POWER PLANT Capacity: 15 MW Turbine & 2 Boiler x 40 ton PLANT Welcome to 5 GLUE PLANT DEPARTMENT "Quality is our priority" GLUE PLANT Capacity: 54.000 ton/year WATER TREATMENT PLANT WASTEWATER TREATMENT IFI 10 10#11THE COMPANY PRODUCTS Medium Density Fibreboard (MDF) High Moisture Resistant HMR-MDF Plywood Plywood MDF MDF Laminated Veneer 11 IFI#12USE OF THE COMPANY PRODUCTS Interior Design Kitchen Set Flooring Structure Panel Doors Furniture 12 IFI#13COMPANY SALES NETWORK IFI The Company has made sales to various countries around the world. Since 2013 until now, the Company's products have been sold to the following countries: ◉ Japan; ■ Lebanon; ■ Saudi Arabia; Malaysia; Vietnam; ■ Jordan; ■ Egypt; ■ South Korea; ◉ United States of America; ■ Taiwan; ■ China; ■ India; and Other countries. 13#14FINANCIAL PERFORMANCE 14 IFI#15SALES GROWTH 49.034 323.270 Net Sales (in million Rupiah) 554.574 567.190 569.554 442.689 713.840 682.021 669.713 608.680 35% CAGR 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (P) 15 IFI#16COMPARATIVE FINANCIAL HIGHLIGHTS Financial Highlight (in million Rupiah) Net Sales Cost of Good Sold Gross Profit Operating Profit Profit Before Income Tax Expense Compare Q to Q Compare Q to Y Sep-21 Sep-20 Sep-21 Des-20 506.139 501.209 506.139 682.021 356.334 352.149 356.334 478.976 149.805 149.060 149.805 203.045 71.728 80.083 71.728 110.082 74.198 73.035 74.198 96.157 Profit for the year attributable to: Equity holders of the parent company 57.756 55.654 57.756 73.586 Non-controlling interest Current Assets Fixed Assets - net Total Assets Current Liabilities Total Liabilities Issued and fully paid capital 343.248 766.399 339.204 730.213 343.248 341.737 766.399 714.337 1.125.105 1.081.982 1.125.105 1.074.239 44.250 43.007 44.250 58.235 67.831 72.907 67.831 74.720 941.200 941.200 941.200 941.200 Equity attributable to: Owners of the company entity 1.057.274 1.009.075 1.057.274 999.518 Non-controlling interest Earning per share 6,14 5,91 6,14 7,82 16 IFI#17FINANCIAL RATIO Compare Q to Q Compare Q to Y Financial Ratio Sep-21 Sep-20 Sep-21 Des-20 Net Sales Growth 1% Total Assets Growth 4% Total Equity Growth 5% Gross Profit Margin Operating Margin Profit Margin 30% 30% 30% 30% 14% 16% 14% 16% 11% 11% 11% 11% Return On Assets 5% 5% 5% 7% Return On Equity 5% 6% 5% 7% Total Debt/ Total Assets 6% 7% 6% 7% Total Debt/ Total Equity 6% 7% 6% 7% Current Ratio 776% 789% 776% 587% 17 IFI#18SALES PERFORMANCE Local Export Total MDF Plywood Veneer Others Total Sales (in million Rp) Increase (Decrease) Market 9M 2021 % 9M 2020 % Rp % 159.440 346.699 31,50% 104.086 20,77% 55.354 53,18% 506.139 68,50% 100,00% 397.123 501.209 79,23% (50.424) 100,00% 4.930 -12,70% 0,98% Product 9M 2021 Sales (in million Rp) % Increase (Decrease) 9M 2020 % Rp % 473.668 32.471 93,58% 6,42% - 0,00% - 0,00% 443.143 88,41% 30.525 46.575 2.359 9.132 6,89% 9,29% (14.104) -30,28% 0,47% (2.359) -100,00% 1,82% (9.132) -100,00% 506.139 100,00% 501.209 100,00% 4.930 0,98% 18 IFI#19SALES BY GEOGRAPHIC Sales (in million Rp) IFI Increase/(Decrease) Country/Region 9M 2021 % 9M 2020 % Rp % Indonesia 159.440 31,50% 104.086 20,77% 55.354 53,18% Japan 159.233 31,46% 181.037 36,12% (21.804) -12,04% Middle East 145.684 28,78% 167.301 33,38% (21.617) -12,92% Others 41.782 Total 8,26% 506.139 100,00% 48.785 501.209 100,00% 9,73% (7.003) -14,36% 4.930 0,98% 1994#20SALES TREND 2020-2021 (in million Rupiah) MDF 173.786 167.159 151.914 155.500 135.729 Q1 2020 Q2 2020 Q3 2020 17.040 14.118 126.746 173.136 Q1 2021 Q2 2021 Q3 2021 Q4 2020 Veneer, Plywood and Others 26.908 13.653 10.843 6.658 14.970 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 20 20 IFI#21PRODUCTION COST COMPOSITION 9M 2021 I YTD Q3 2021 59,06% YTD Q3 2020 56,94% 28,47 % 12,47% 13,98% 12,47 % 28,47% 29,08% IFI 59,06 % Direct Material Direct Labor Fabrication Cost 9M 2020 29,08 Direct Material Direct Labor Fabrication Cost % 56,94 13,98 % % 21 27#22EMPLOYEE TURN OVER Month Increase (Decrease) Employee Status (MP) Sept 2021 Des 2020 MP % Permanent Non Permanent (contract) Total 476 477 (1) 0% 139 171 (32) -19% 615 648 (33) -5% 22 IFI#23TARGET FY 2021 VS FY 2020 SALES IDR > 5% NET PROFIT IDR > 2% Indications Demand from customers has started to increase since the beginning of 2021. The average selling price has increased in 2021 in line with the recovering demand from the local and export market. IFI Indications The significant increase in freight costs and raw materials during 2021 caused the overall profit margin to decrease, but it can be anticipated by increasing selling prices to customers. The average USD exchange rate compared to last year decreased around more than Rp. 300/USD which has an impact on the decline in sales records and the Company's net profit margin. 23#24MDF 2ND LINE 24 IFI#25MDF 2ND LINE PROJECT SUMMARY Location DESCRIPTION PT IFI Tbk Factory Area, Jl. Besar Jambi, Palembang, Mendis Jaya Village, Bayung Lecir District, Musi Banyuasin, South Sumatra. Construction area + 6 Ha Main machine Main building Buildings and other supporting facilities 1. 2. MDF/HDF Production Line with 4 Feet wide x 38,7 meter Continuous Press Power Plant with 1 x 80ton/h CFB Boiler and 1 x 15 MW Steam Turbine Warehouse PPIC, MDF Forming Line, Raw Board Storage, Energy Plant, Refiner, Barker Chipper, Chips Silo, Power Plant, Warehouse material Logyard, road, employee housing and other small facilities Additional MDF production + 200,000 M3 capacity Project budget Project financing Estimated completion to the production stage + Rp. 650 Billion 70% from the Bank, and 30% from the Company's operational cash flow (the Company has signed an investment loan agreement with PT Bank Danamon Indonesia Tbk amounting to USD 31,000,000) First Quarter 2023 25 IFI#26IMPACT TO COMPANY PERFORMANCE NET SALES PROJECTION (In million Rp) 1.600.000 1.400.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000 2023 2024 2025 2026 2027 2028 ■ MDF Line 1 MDF Line 1 +2 Since the start of the MDF Line 2 production phase in early 2023, the company's net sales are projected to increase by around 20% in 2023 and will continue to increase by around 80% in 2028 26 IFI#27CONSTRUCTION PROGRESS PPIC Warehouse - Structure construction stage MDF Building - pilling stage Power Plant Building - pilling stage Houshing progress 27 IFI#28CONSTRUCTION PROGRESS (Continued) Rawboard Building - pilling stage finished Refiner Building - pilling stage finished Barker Building - pilling stage Road Construction Progress 28 IFI#29MAIN SUPPLIERS AND CONTRACTORS (UPDATE AS OF NOV 2021) SUPPLIERS/ CONTRACTORS NO 1 Yalian Machinery Co. Ltd 2 Shandong Huatai Power Eng. 3 Others SCOPE OF SUPPLY/WORK MDF Line Machine 1st Delivery in February 2022 2nd Delivery in March 2022 3rd Delivery in May 2022 Finish installation in Q1 - 2023 Power Plant including steel structure 1st Delivery in March 2022 2nd Delivery in May 2022 Finish installation in Q1 - 2023 Pre Project, Land Cut and Fill, Pilling, Building, Installation, Houshing, etc CONTRACT VALUE IN FOREIGN CURRENCY RMB 100.000.000 RMB 57.000.000 CONTRACT VALUE IN RUPIAH CURRENCY Rp. 154 Billion Note: The contract/PO above is the realization of the progress of construction planning until November 2021 and will increase along with the final completion of the construction plan. 29 IFI#301F1 THANK YOU This presentation has been prepared by PT Indonesia Fibreboard Industry Tbk independently and is circulated for the purpose of general information only. It is not intended for the specific person who may receive this presentation The information in this presentation has been obtained from sources which we deem reliable. No warranty (expressed or implied) is made as to the accuracy or completeness of the information. All opinions and estimations included in this presentation constitute our judgment as of this date and are subject to change without prior notice. We disclaim any responsibility or liability whatsoever arising which may be brought or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither PT Indonesia Fibreboard Industry Tbk and/or their respective employees and/or agents accepts liability for any errors, omissions, negligent or otherwise, in this report and any inaccuracy herein or omission here from which might otherwise arise Cautionary note on forward-looking statements: This presentation may contain statements regarding the business of PT Indonesia Fibreboard Industry Tbk that are of a forward-looking nature and are therefore based on management's assumptions about future developments. Forward- looking statements involve certain risks and uncertainties because they relate to future events. Actual results may vary materially from those targeted, expected or projected due to several factors. Potential risks and uncertainties includes such factors as general economic conditions, foreign exchange fluctuations, interest rate changes, commodity price fluctuations and regulatory developments. The reader and/or listener is cautioned to not unduly rely on these forward- looking statements. We do not undertake any duty to publish any update or revision of any forward-looking statements. ADR GROUP OF COMPANIES Agro Division