Sidoarjo (1/11) – Largest vertically integrated wooden products manufacturer in Indonesia, PT Integra Indocabinet Tbk (WOOD IJ) booked 2021FY (unaudited) net sales of approximately IDR5.50tn or grew by 89% YoY, which is above the Company’s target of 50% YoY growth or equal to IDR4.45tn.

2022 Growth Strategy & Target
In 2022, the Company targets its net sales to grow at least at 25% YoY by utilizing its installed capacities on both furniture (52,775cbm/year) and building component (345,060cbm/year). Concurrently, the company will expand its market share particularly on US market, the largest importer for both furniture and building component products. As of early January 2022, the Company has received IDR1.06tn on hand sales order. The company expects to receive surge of sales order in the coming months and aims to book stronger net sales than its target.

The Company will keep expanding its market share in the US furniture market, as the market left by the China exporter is huge and potential for the Company to grow. As the largest furniture import market in the world, US imports approximately USD13-14bn/year wooden furniture contributed mostly from China as the leading exporter to US market until 2018. It was accounted 38% of the total US furniture imports. However, since the implementation of trade war tariff, anti-dumping and anti-subsidy duties, China furniture exports dropped significantly to only 13-14% of the total US import in 2021. Therefore, the USD3.4bn US furniture import moved out from China to other furniture exporting countries particularly Indonesia. This creates a growth opportunity for the company to participate in.

Concurrently, the company will also expand its market share in other region given the current challenging time in terms of supply chain, Integra which domestically source its raw materials could offer more competitive selling prices compare to other overseas competitor that import most of its raw materials.

In 2021, Integra also acquired 2.3ha factory in Lumajang, East Java which will potentially increase the building component (BC) capacity by 20% and expected to start the operation by 1Q22 and boost the BC sales. The aggressive strategy in accelerating BC capacity was due to the strong demand on BC products in the US market. This attributed from the US implementation of anti-dumping and anti-subsidy duties on China’s BC products.

Potential Margin Expansion
• The company has strategically restructured its debt hence able to reduce its financing cost by approximately from 100-150bps in 2022.
• In 2022, the Company will start to conduct its verified carbon unit measurement and issuance. Utilizing its forestry and aiming to acquire more forest concession, the Company expect to start trading its carbon unit by 2023. The carbon credit trading is expected to have a strong margin, hence it will expand the company profitability and improve cash flow to support the future expansion.

About PT Integra Indocabinet Tbk:

Founded in 1989 in Sidoarjo, East Java, PT Integra Indocabinet Tbk is the largest vertically integrated wooden products manufacturer in Indonesia. Integra has established itself as the fastest growing furniture manufacturer with international and domestic accreditation. Integra promotes the use of sustainable resources and supports the livelihoods of local communities. The group employs over 2,500 team members across Indonesia.

For further information, please contact:
E-mail : corsec.integra@iil.co.id
Tel : (62 31) 891 0434
Website : www.integragroup-indonesia.com

This press release has been prepared by PT Integra Indocabinet Tbk (WOOD) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of WOOD. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. Integra disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither Integra nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.

Forward-Looking Statements
Certain statements in this release are or may be forward-looking statements. These statements typically contain words such as “will”, “expects” and “anticipates” and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for our developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; our ability to be and remain competitive; our financial condition, business strategy as well as the plans and objectives of our management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize; actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although we believe that the expectations of our management as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.