The acoustic felt within the timber slatted panels is designed to help dampen sound by absorbing sound energy and stopping this energy from continuing to bounce around the room. This also helps to remove reverberation within the room. 

Soundproofing is trying to stop sound from getting into, or out of a room. E.g. blocking the sound from noisy neighbours. Sound absorption is making the acoustics within a room sound better, by reducing the amount of echo and reverberation.

Learn more: Difference between sound absorption and soundproofing