Technology

Amcor reports fiscal 2024 results and provides outlook for fiscal 2025

Published

2 years ago

August 15, 2024

June 2024 Quarter Highlights:

Another sequential improvement in volumes and earnings growth;Net sales of $3,535 million; volumes returned to growth, up 1%;GAAP net income of $257 million; GAAP diluted earnings per share (EPS) of 17.8 cps;Adjusted EBIT of $454 million, up 4% on a comparable constant currency basis; andAdjusted EPS of 21.1 cps, up 9% on a comparable constant currency basis.

Fiscal 2024 Full Year Highlights:

Net sales of $13,640 million;GAAP Net Income of $730 million; GAAP diluted EPS of 50.5 cps;Adjusted EPS of 70.2 cps and Adjusted EBIT of $1,560 million;Adjusted Free Cash Flow of $952 million, up >$100 million or 12% on last year; andCash returns to shareholders of approximately $750 million: annual dividend increased to 50.0 cents per share and $30 million of shares repurchased.

Fiscal 2025 outlook:

Adjusted EPS of 72-76 cents per share; Adjusted Free Cash Flow of $900-1,000 million.

ZURICH, Aug. 15, 2024 /PRNewswire/ —

Strong 4Q financial performance ahead of expectations with volumes returning to growth

Amcor expects strong growth from the underlying business to continue in FY25

Amcor Interim CEO Peter Konieczny said: “Amcor finished fiscal 2024 strongly, as the underlying business delivered another sequential improvement in volume and earnings growth, with fourth quarter adjusted EPS up 9%, ahead of the expectations we set out in April. Volumes returned to year on year growth in the quarter as customer demand improved and our teams maintained their outstanding focus on managing costs, driving strong margin expansion. Annual adjusted free cash flow was at the top end of our guidance range and up 12% on last year.

In fiscal 2025, we expect volumes and earnings will grow and adjusted free cash flow will remain strong. Importantly, combined with our historical average dividend yield, growth at the midpoint of our EPS guidance range results in total value creation in-line with our shareholder value creation model 10-15% range.

We remain confident in our capital allocation framework and strategy for long term growth. We believe our underlying business and market positions are strong and we will continue to invest for organic growth, pursue acquisitions or repurchase shares and return cash to shareholders through a compelling and growing dividend.”

Key Financials(1)

Twelve Months Ended June 30,

GAAP results

2023 $ million

2024 $ million

Net sales

14,694

13,640

Net income

1,048

730

EPS (diluted US cents)

70.5

50.5

Twelve Months Ended June 30,

Reported ∆%

Comparable
constant
currency ∆%

Adjusted non-GAAP results

2023 $ million

2024 $ million

Net sales

14,694

13,640

(7)

(6)

EBITDA

2,018

1,962

(3)

(1)

EBIT

1,608

1,560

(3)

(1)

Net income

1,089

1,015

(7)

(5)

EPS (diluted US cents)

73.3

70.2

(4)

(2)

Free Cash Flow

848

952

(1) Adjusted non-GAAP results exclude items which are not considered representative of ongoing operations. Comparable constant currency ∆% excludes the impact of movements in foreign exchange rates and items affecting comparability. Further details related to non-GAAP measures and reconciliations to GAAP measures can be found under “Presentation of non-GAAP information” in this release.

Note: All amounts referenced throughout this document are in US dollars unless otherwise indicated and numbers may not add up precisely to the totals provided due to rounding.

Shareholder returns

Capital allocation

Amcor generates significant annual cash flow and is committed to an investment grade credit rating. We believe that the Company’s strong annual cash flow and balance sheet provide capacity to reinvest in the business for organic growth, pursue acquisitions or share repurchases and return cash to shareholders through a compelling and growing dividend.

During fiscal 2024, the Company returned approximately $750 million to shareholders through cash dividends and share repurchases.

Dividend

The Amcor Board of Directors today declared a quarterly cash dividend of 12.5 cents per share (compared with 12.25 cents per share in the same quarter last year). Combined with the last three quarterly dividends, this increases the annual dividend for fiscal 2024 to 50.0 cents per share. The quarterly dividend declared today will be paid in US dollars to holders of Amcor’s ordinary shares trading on the NYSE. Holders of CDIs trading on the ASX will receive an unfranked dividend of 19.01 Australian cents per share, which reflects the quarterly dividend of 12.5 cents per share converted at an average AUD:USD exchange rate of 0.6574 over the five trading days ended August 13, 2024.

The ex-dividend date will be September 5, 2024, the record date will be September 6, 2024, and the payment date will be September 26, 2024.

Share repurchases

Amcor repurchased approximately 3 million shares during fiscal 2024 for a total cost of approximately $30 million.

Financial results – twelve months ended June 30, 2024

Segment Information

Twelve Months Ended June 30, 2023

Twelve Months Ended June 30, 2024

Adjusted non-GAAP
results

Net sales

$ million

EBIT

$ million

EBIT /

Sales %

EBIT / Average
funds employed
%(1)

Net sales

$ million

EBIT

$ million

EBIT /

Sales %

EBIT / Average
funds employed
%(1)

Flexibles

11,154

1,429

12.8

10,332

1,395

13.5

Rigid Packaging

3,540

265

7.5

3,308

259

7.8

Other(2)

—

(86)

—

(94)

Total Amcor

14,694

1,608

10.9

15.4

13,640

1,560

11.4

14.9

(1) Return on average funds employed includes shareholders’ equity and net debt, calculated using a four quarter average and last twelve months adjusted EBIT.

(2) Represents corporate expenses.

Twelve months ended June 30, 2024:

Net sales of $13,640 million were 7% lower than last year on a reported basis, including a favorable impact of approximately 1% related to movements in foreign exchange rates, an unfavorable impact of approximately 1% related to items affecting comparability, and an unfavorable impact of 1% related to the pass through of lower raw material costs of approximately $220 million.

Net sales on a comparable constant currency basis were 6% lower than last year reflecting approximately 5% lower volumes and an unfavorable price/mix impact of approximately 1%.

Adjusted EBIT of $1,560 million was 1% lower than last year on a comparable constant currency basis, reflecting lower volumes and unfavorable impacts from price/mix, partly offset by strong cost performance.

June 2024 quarter result:

Net sales of $3,535 million were 4% lower than last year on a reported basis, including an unfavorable impact of 2% related to the pass through of lower raw material costs of approximately $70 million. Movements in foreign exchange rates had an unfavorable impact on net sales of less than 1% for the quarter.

Volumes returned to growth in the June quarter, up approximately 1% compared with the prior year which represents a sequential improvement of 5 percentage points. As expected, volumes remained soft in healthcare categories and in the North America beverage business through the June quarter, unfavorably impacting overall volumes by approximately 2%. Price/mix had an unfavorable impact of approximately 3% due to lower volumes in high value healthcare categories. On a comparable constant currency basis, net sales were 1% lower than last year.

Adjusted EBIT of $454 million was approximately 4% higher than last year on a comparable constant currency basis. Unfavorable impacts from price/mix were more than offset by higher volumes, benefits from restructuring initiatives and continued outstanding cost performance which resulted in strong earnings leverage.

Flexibles segment – June 2024 quarter

Three Months Ended June 30,

Reported
∆%

Comparable
constant
currency ∆%

2023 $ million

2024 $ million

Net sales

2,777

2,686

(3)

(1)

Adjusted EBIT

387

403

Adjusted EBIT / Sales %

13.9

15.0

Net sales of $2,686 million were 3% lower than last year on a reported basis, including an unfavorable impact of approximately 1% related to movements in foreign exchange rates and an unfavorable impact of 1% related to the pass through of lower raw material costs of approximately $40 million.

Volumes returned to growth in the June quarter, up approximately 3% compared with the prior year, which is a sequential improvement of 5 percentage points. Price/mix had an unfavorable impact of approximately 4%, primarily due to lower volumes in high value healthcare categories. On a comparable constant currency basis, net sales were 1% lower than last year.

Volumes were higher than the same quarter last year across most geographies and in several end markets including home & personal care, meat, cheese and unconverted film and foil. As expected, destocking continued in healthcare categories and volumes remained soft, unfavorably impacting overall segment volumes for the quarter by approximately 2%.

Adjusted EBIT of $403 million was 5% higher than last year on a comparable constant currency basis. The impact of higher volumes, benefits from restructuring initiatives and strong cost performance was partly offset by unfavorable price/mix. Earnings leverage was strong, and adjusted EBIT margin of 15.0% was 110 basis points higher than the June quarter last year.

Flexibles segment – Fiscal 2024

Twelve Months Ended June 30,

Reported
∆%

Comparable
constant
currency ∆%

2023 $ million

2024 $ million

Net sales

11,154

10,332

(7)

(6)

Adjusted EBIT

1,429

1,395

(2)

—

Adjusted EBIT / Sales %

12.8

13.5

Net sales of $10,332 million were 7% lower than last year on a reported basis, including a favorable impact of approximately 1% related to movements in foreign exchange rates, an unfavorable impact of approximately 1% related to items affecting comparability and an unfavorable impact of 1% related to the pass through of lower raw material costs of approximately $180 million. On a comparable constant currency basis, net sales were 6% lower, reflecting an unfavorable price/mix impact of approximately 2% and lower volumes of approximately 4%. Volume weakness largely reflects lower market and customer demand and destocking particularly through the first half of the year. The trajectory of volumes improved significantly through the second half of the year, returning to year over year growth in the June quarter.

In North America, net sales declined at mid to high single digit rates driven by lower volumes and an unfavorable price/mix impact. Volumes were higher in the condiments, snacks and cheese categories and this was more than offset by lower volumes in categories including healthcare, meat and liquid beverage.

In Europe, net sales declined at high single digit rates primarily driven by lower volumes. Volumes were lower mainly in the healthcare, snacks & confectionary, coffee and yoghurt end markets.

Across the Asian region, volumes were higher than the prior year with growth in Thailand, India and China, partly offset by lower volumes in the South East Asian healthcare business. In Latin America, net sales declined at mid single digit rates, driven by lower volumes mainly in Chile and Mexico, partly offset by growth in Brazil.

Adjusted EBIT of $1,395 million was in line with last year on a comparable constant currency basis, reflecting lower volumes and unfavorable impacts from price/mix, partly offset by benefits from restructuring initiatives and ongoing actions taken to lower costs and increase productivity. Adjusted EBIT margin of 13.5% was higher than the prior year notwithstanding weaker volumes and a 30 basis point unfavorable impact compared to the prior year related to the sale of the Russian business in December 2022.

Rigid Packaging segment – June 2024 quarter

Three Months Ended June 30,

Reported
∆%

Comparable
constant
currency ∆%

2023 $ million

2024 $ million

Net sales

897

849

(5)

(2)

Adjusted EBIT

Adjusted EBIT / Sales %

8.1

8.8

Net sales of $849 million were 5% lower than last year on a reported basis, including an unfavorable impact of 4% related to the pass through of lower raw material costs of approximately $30 million. Movements in foreign exchange rates had a favorable impact on net sales of less than 1% for the quarter.

On a comparable constant currency basis, net sales were 2% lower than last year with volumes approximately 5% lower, partly offset by favorable price/mix benefits of approximately 3%.

In North America, overall beverage volumes improved sequentially for the second consecutive quarter. While consumer and customer demand in key categories improved sequentially, overall volumes were 8% lower as a result of continued soft demand which was expected. Hot fill beverage container volumes were 9% lower than the same quarter last year, which represents a 9 percentage point improvement compared with the March 2024 quarter.

In Latin America, volumes were 3% higher than the same quarter last year, reflecting new business wins in Brazil, Colombia and Central America, partly offset by weaker demand in Argentina. Specialty Container volumes were lower than last year.

Adjusted EBIT of $75 million was 2% higher than last year on a comparable constant currency basis, with the impact of lower volumes more than offset by favorable price/mix, benefits from restructuring initiatives and strong cost performance which drove solid earnings leverage.

Rigid Packaging segment – Fiscal 2024

Twelve Months Ended June 30,

Reported
∆%

Comparable
constant
currency ∆%

2023 $ million

2024 $ million

Net sales

3,540

3,308

(7)

(6)

Adjusted EBIT

265

259

(2)

(4)

Adjusted EBIT / Sales %

7.5

7.8

Net sales of $3,308 million were 7% lower than last year on a reported basis, including an unfavorable impact of 1% related to the pass through of lower raw material costs of approximately $40 million. Movements in foreign exchange rates had a favorable impact on net sales of less than 1%. On a comparable constant currency basis, net sales were 6% lower than last year, reflecting price/mix benefits of approximately 2% and volumes were approximately 8% lower than last year.

In North America, overall beverage volumes were 12% lower than last year, including a reduction in hot fill beverage container volumes of approximately 13%. This mainly reflects a combination of lower consumer and customer demand, as well as significant destocking particularly through the first half of the year.

In Latin America, volumes were 3% higher than last year, reflecting new business wins with a broad range of customers in Brazil and Colombia, partly offset by lower volumes in Argentina. Specialty Container volumes were lower than last year.

Adjusted EBIT of $259 million was 4% lower than last year on a comparable constant currency basis, reflecting lower volumes partly offset by price/mix benefits and favorable cost performance.

Net interest and income tax expense

For the year ended June 30, 2024, net interest expense of $310 million was $51 million higher than last year, reflecting higher interest rates. GAAP income tax expense was $163 million compared with $193 million last year. Adjusted tax expense for the year ended June 30, 2024 was $225 million compared with $250 million last year. Adjusted tax expense for the year ended June 30, 2024 represents an effective tax rate of 18.0%, compared with 18.5% in the prior year.

Adjusted Free Cash Flow

For the year ended June 30, 2024, adjusted free cash inflow was $952 million, at the top end of the Company’s guidance range and up $104 million, or 12% compared with the prior year.

Net debt was $6,111 million at June 30, 2024. Leverage, measured as net debt divided by adjusted trailing twelve month EBITDA, was 3.1 times and in line with our expectations.

Fiscal 2025 Guidance

For the twelve month period ending June 30, 2025, the Company expects:

Adjusted EPS of approximately 72 to 76 cents per share, which represents comparable constant currency growth of 3% to 8% (includes approximately 4% headwind related to normalization of incentive compensation payments) compared with 70.2 cents per share in fiscal 2024.Assuming current exchange rates prevail through fiscal 2025, movements in exchange rates are not expected to have a material impact on reported EPS.Adjusted Free Cash Flow of approximately $900 million to $1,000 million.

Amcor’s guidance contemplates a range of factors which create a degree of uncertainty and complexity when estimating future financial results. Further information can be found under ‘Cautionary Statement Regarding Forward-Looking Statements’ in this release.

Conference Call

Amcor is hosting a conference call with investors and analysts to discuss these results on Thursday August 15, 2024 at 5:30pm US Eastern Daylight Time / Friday August 16, 2024 at 7:30am Australian Eastern Standard Time. Investors are invited to listen to a live webcast of the conference call at our website, www.amcor.com, in the “Investors” section.

Those wishing to access the call should use the following toll-free numbers, with the Conference ID : 9115937

USA: 800 715 9871 (toll free)USA: 646 307 1963 (local)Australia: 1800 519 630 (toll free), 02 9133 7103 (local)United Kingdom: 0800 358 0970 (toll free), 020 3433 3846 (local)Singapore: +65 3159 5133 (local)Hong Kong: +852 3002 3410 (local)

From all other countries, the call can be accessed by dialing +1 646 307 1963 (toll).

A replay of the webcast will also be available in the ‘Investors” section at www.amcor.com following the call.

About Amcor

Amcor is a global leader in developing and producing responsible packaging solutions across a variety of materials for food, beverage, pharmaceutical, medical, home and personal-care, and other products. Amcor works with leading companies around the world to protect products, differentiate brands, and improve supply chains. The Company offers a range of innovative, differentiating flexible and rigid packaging, specialty cartons, closures and services. The company is focused on making packaging that is increasingly recyclable, reusable, lighter weight and made using an increasing amount of recycled content. In fiscal year 2024, 41,000 Amcor people generated $13.6 billion in annual sales from operations that span 212 locations in 40 countries. NYSE: AMCR; ASX: AMC

www.amcor.com I LinkedIn I YouTube

Contact Information

Investors

Tracey Whitehead

Damien Bird

Damon Wright

Global Head of Investor Relations

Vice President Investor Relations Asia Pacific

Vice President Investor Relations North America

Amcor

+61 408 037 590

+61 481 900 499

+1 224 313 7141

tracey.whitehead@amcor.com

damien.bird@amcor.com

damon.wright@amcor.com

Media – Australia

Media – Europe

Media – North America

James Strong

Ernesto Duran

Julie Liedtke

Managing Director

Head of Global Communications

Director, Media Relations

Sodali & Co

Amcor

+61 448 881 174

+41 78 698 69 40

+1 847 204 2319

james.strong@sodali.com

ernesto.duran@amcor.com

julie.liedtke@amcor.com

Amcor plc UK Establishment Address: 83 Tower Road North, Warmley, Bristol, England, BS30 8XP, United Kingdom

UK Overseas Company Number: BR020803

Registered Office: 3rd Floor, 44 Esplanade, St Helier, JE4 9WG, Jersey

Jersey Registered Company Number: 126984, Australian Registered Body Number (ARBN): 630 385 278

Cautionary Statement Regarding Forward-Looking Statements

This document contains certain statements that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified with words like “believe,” “expect,” “target,” “project,” “may,” “could,” “would,” “approximately,” “possible,” “will,” “should,” “intend,” “plan,” “anticipate,” “commit,” “estimate,” “potential,” “ambitions,” “outlook,” or “continue,” the negative of these words, other terms of similar meaning, or the use of future dates. Such statements are based on the current expectations of the management of Amcor and are qualified by the inherent risks and uncertainties surrounding future expectations generally. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. Neither Amcor nor any of its respective directors, executive officers, or advisors provide any representation, assurance, or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause actual results to differ from expectations include, but are not limited to: changes in consumer demand patterns and customer requirements in numerous industries; the loss of key customers, a reduction in their production requirements or consolidation among key customers; significant competition in the industries and regions in which we operate; an inability to expand our current business effectively through either organic growth, including product innovation, investments or acquisitions; challenging global economic conditions, impacts of operating internationally; price fluctuations or shortages in the availability of raw materials, energy, and other inputs which could adversely affect our business; production, supply, and commercial risks, including counterparty credit risks, which may be exacerbated in times of economic volatility; pandemics, epidemics, or other disease outbreaks; an inability to attract, motivate and retain our skilled workforce and manage key transitions; labor disputes and an inability to renew collective bargaining agreements at acceptable terms; physical impact of climate change; cybersecurity risks, which could disrupt our operations or risk of loss of our sensitive business information; failures or disruptions in our information technology systems which could disrupt our operations, compromise customer, employee, supplier and other data; a significant increase in our indebtedness or a downgrade in our credit rating could reduce our operating flexibility and increase our borrowing costs and negatively affect our financial condition and results of operations; rising interest rates that increase our borrowing costs on our variable rate indebtedness and could have other negative impacts; foreign exchange rate risk; a significant write-down of goodwill and/or intangible assets; a failure to maintain an effective system of internal control over financial reporting; inability of our insurance policies, including our use of a captive insurance company, to provide adequate protection against all of the risks we face; an inability to defend our intellectual property rights or intellectual property infringement claims against us; litigation, including product liability claims or litigation related to Environmental, Social, and Governance (“ESG”) matters or regulatory developments; increasing scrutiny and changing expectations from investors, customers, suppliers and governments with respect to our ESG practices and commitments resulting in additional costs or exposure to additional risks; changing ESG disclosure regulations including climate-related rules; changing environmental, health, and safety laws; changes in tax laws or changes in our geographic mix of earnings; and other risks and uncertainties identified from time to time in Amcor’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including without limitation, those described under Item 1A. “Risk Factors” of Amcor’s annual report on Form 10-K for the fiscal year ended June 30, 2023 and any subsequent quarterly reports on Form 10-Q. You can obtain copies of Amcor’s filings with the SEC for free at the SEC’s website (www.sec.gov). Forward-looking statements included herein are made only as of the date hereof and Amcor assumes no obligation, and disclaims any obligation to update any forward-looking statements, or any other information in this communication, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent, except as expressly required by law. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.

Presentation of non-GAAP information

Included in this release are measures of financial performance that are not calculated in accordance with U.S. GAAP. These measures include adjusted EBITDA and EBITDA (calculated as earnings before interest and tax and depreciation and amortization), adjusted EBIT and EBIT (calculated as earnings before interest and tax), adjusted net income, adjusted earnings per share, adjusted free cash flow and net debt. In arriving at these non-GAAP measures, we exclude items that either have a non-recurring impact on the income statement or which, in the judgment of our management, are items that, either as a result of their nature or size, could, were they not singled out, potentially cause investors to extrapolate future performance from an improper base. Note that while amortization of acquired intangible assets is excluded from non-GAAP adjusted financial measures, the revenue of the acquired entities and all other expenses unless otherwise stated, are reflected in our non-GAAP financial performance earnings measures. While not all inclusive, examples of these items include: material restructuring programs, including associated costs such as employee severance, pension and related benefits, impairment of property and equipment and other assets, accelerated depreciation, termination payments for contracts and leases, contractual obligations, and any other qualifying costs related to restructuring plans; material sales and earnings from disposed or ceased operations and any associated profit or loss on sale of businesses or subsidiaries; changes in the fair value of economic hedging instruments on commercial paper and contingent purchase consideration; significant pension settlements; impairments in goodwill and equity method investments; material acquisition compensation and transaction costs such as due diligence expenses, professional and legal fees, and integration costs; material purchase accounting adjustments for inventory; amortization of acquired intangible assets from business combination; gains or losses on significant property and divestitures and significant property and other impairments, net of insurance recovery; certain regulatory and legal matters; impacts from highly inflationary accounting; expenses related to the Company’s Chief Executive Officer transition; and impacts related to the Russia–Ukraine conflict.

Amcor also evaluates performance on a comparable constant currency basis, which measures financial results assuming constant foreign currency exchange rates used for translation based on the average rates in effect for the comparable prior year period. In order to compute comparable constant currency results, we multiply or divide, as appropriate, current-year U.S. dollar results by the current year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior-year average foreign exchange rates. We then adjust for other items affecting comparability. While not all inclusive, examples of items affecting comparability include the difference between sales or earnings in the current period and the prior period related to disposed, or ceased operations. Comparable constant currency net sales performance also excludes the impact from passing through movements in raw material costs.

Management has used and uses these measures internally for planning, forecasting and evaluating the performance of the Company’s reporting segments and certain of the measures are used as a component of Amcor’s Board of Directors’ measurement of Amcor’s performance for incentive compensation purposes. Amcor believes that these non-GAAP measures are useful to enable investors to perform comparisons of current and historical performance of the Company. For each of these non-GAAP financial measures, a reconciliation to the most directly comparable U.S. GAAP financial measure has been provided herein. These non-GAAP financial measures should not be construed as an alternative to results determined in accordance with U.S. GAAP. The Company provides guidance on a non-GAAP basis as we are unable to predict with reasonable certainty the ultimate outcome and timing of certain significant forward-looking items without unreasonable effort. These items include but are not limited to the impact of foreign exchange translation, restructuring program costs, asset impairments, possible gains and losses on the sale of assets, and certain tax related events. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP earnings and cash flow measures for the guidance period.

Dividends

Amcor has received a waiver from the ASX’s settlement operating rules, which will allow the Company to defer processing conversions between its ordinary share and CDI registers from September 5, 2024 to September 6, 2024 inclusive.

U.S. GAAP Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended June 30,

Twelve Months Ended June 30,

($ million, except per share amounts)

2023

2024

2023

2024

Net sales

3,673

3,535

14,694

13,640

Cost of sales

(2,951)

(2,781)

(11,969)

(10,928)

Gross profit

722

754

2,725

2,712

Selling, general, and administrative expenses

(329)

(1,246)

(1,260)

Research and development expenses

(25)

(26)

(101)

(106)

Restructuring and other related activities, net

(59)

(15)

104

(97)

Other income/(expense), net

(35)

Operating income

325

395

1,508

1,214

Interest expense, net

(70)

(78)

(259)

(310)

Other non-operating income/(expense), net

(3)

Income before income taxes and equity in loss of affiliated
companies

252

318

1,251

907

Income tax expense

(68)

(56)

(193)

(163)

Equity in loss of affiliated companies, net of tax

—

(1)

—

(4)

Net income

184

261

1,058

740

Net income attributable to non-controlling interests

(4)

(10)

Net income attributable to Amcor plc

181

257

1,048

730

USD:EUR average FX rate

0.9185

0.9287

0.9561

0.9245

Basic earnings per share attributable to Amcor

0.124

0.178

0.709

0.505

Diluted earnings per share attributable to Amcor

0.123

0.178

0.705

0.505

Weighted average number of shares outstanding – Basic

1,452

1,439

1,468

1,439

Weighted average number of shares outstanding – Diluted

1,456

1,443

1,476

1,441

U.S. GAAP Condensed Consolidated Statements of Cash Flows (Unaudited)

Twelve Months Ended June 30,

($ million)

2023

2024

Net income

1,058

740

Depreciation, amortization, and impairment

586

595

Net gain on disposal of businesses and investments

(220)

—

Changes in operating assets and liabilities, excluding effect of acquisitions, divestitures, and
currency

(265)

(120)

Other non-cash items

102

106

Net cash provided by operating activities

1,261

1,321

Purchase of property, plant, and equipment and other intangible assets

(526)

(492)

Proceeds from sales of property, plant, and equipment and other intangible assets

Business acquisitions and Investments in affiliated companies, and other

(177)

(23)

Proceeds from divestitures

365

—

Net debt proceeds/(repayments)

228

(43)

Dividends paid

(723)

(722)

Share buy-back/cancellations

(432)

(30)

Purchase of treasury shares and tax withholdings for share-based incentive plans

(87)

(51)

Other, including effects of exchange rate on cash and cash equivalents

(100)

Net decrease in cash and cash equivalents

(161)

(101)

Cash and cash equivalents at the beginning of the year(1)

850

689

Cash and cash equivalents at the end of the period

689

588

(1) Cash and cash equivalents at the beginning of fiscal 2023 includes $75 million of cash and cash equivalents as held for sale.

U.S. GAAP Condensed Consolidated Balance Sheets (Unaudited)

($ million)

June 30, 2023

June 30, 2024

Cash and cash equivalents

689

588

Trade receivables, net

1,875

1,846

Inventories, net

2,213

2,031

Property, plant and equipment, net

3,762

3,763

Goodwill and other intangible assets, net

6,890

6,736

Other assets

1,574

1,560

Total assets

17,003

16,524

Trade payables

2,690

2,580

Short-term debt and current portion of long-term debt

Long-term debt, less current portion

6,653

6,603

Accruals and other liabilities

3,477

3,292

Shareholders’ equity

4,090

3,953

Total liabilities and shareholders’ equity

17,003

16,524

Components of Fiscal 2024 Net Sales growth

Three Months Ended June 30

Twelve Months Ended June 30

($ million)

Flexibles

Rigid
Packaging

Total

Flexibles

Rigid
Packaging

Total

Net sales fiscal year 2024

2,686

849

3,535

10,332

3,308

13,640

Net sales fiscal year 2023

2,777

897

3,673

11,154

3,540

14,694

Reported Growth %

(3)

(5)

(4)

(7)

FX %

(1)

—

(1)

—

Constant Currency Growth %

(2)

(6)

(3)

(8)

(7)

(8)

Raw Material Pass Through %

(1)

(4)

(2)

(1)

Items affecting comparability %

—

(1)

—

(1)

Comparable Constant Currency
Growth %

(1)

(2)

(1)

(6)

Acquired Operations %

—

Organic Growth

(1)

(2)

(1)

(6)

Volume %

(5)

(4)

(8)

(5)

Price/Mix %

(4)

(3)

(2)

(1)

Reconciliation of Non-GAAP Measures

Reconciliation of adjusted Earnings before interest, tax, depreciation and amortization (EBITDA), Earnings before interest

and tax (EBIT), Net income, Earnings per share (EPS) and Free Cash Flow

Three Months Ended June 30, 2023

Three Months Ended June 30, 2024

($ million)

EBITDA

EBIT

Net
Income

EPS
(Diluted
US
cents)(1)

EBITDA

EBIT

Net
Income

EPS
(Diluted
US
cents)(1)

Net income attributable to Amcor

181

12.3

257

17.8

Net income attributable to non-controlling
interests

Tax expense

Interest expense, net

Depreciation and amortization

144

136

EBITDA, EBIT, Net income and EPS

467

323

181

12.3

531

395

257

17.8

Impact of highly inflationary accounting

0.4

(2)

(0.1)

Property and other losses,net

0.1

—

Restructuring and other related activities, net(2)

4.5

1.0

Other

—

(0.1)

0.3

Amortization of acquired intangibles(3)

2.9

Tax effect of above items

(12)

(0.8)

(11)

(0.8)

Adjusted EBITDA, EBIT, Net income, and EPS

540

436

282

19.3

550

454

305

21.1

Reconciliation of adjusted growth to comparable constant currency growth

% growth – Adjusted EBITDA, EBIT, Net income and EPS

% items affecting comparability(4)

—

% currency impact

—

% comparable constant currency growth

Adjusted EBITDA

540

550

Interest paid, net

(79)

(99)

Income tax paid

(95)

(90)

Purchase of property, plant and equipment and
other intangible assets

(144)

(134)

Proceeds from sales of property, plant and
equipment and other intangible assets

Movement in working capital

572

610

Other

(27)

Adjusted Free Cash Flow

834

837

(1) Calculation of diluted EPS for the three months ended June 30, 2024 excludes net income attributable to shares to be repurchased under
forward contracts of $1 million. Calculation of diluted EPS for the three months ended June 30, 2023 excludes net income attributable to shares to
be repurchased under forward contracts of $1 million.

(2) Includes incremental restructuring and other costs attributable to group wide initiatives to partly offset divested earnings from the Russian
business.

(3) Amortization of acquired intangible assets from business combinations.

(4) Reflects the impact of acquired, disposed, and ceased operations.

Twelve Months Ended June 30, 2023

Twelve Months Ended June 30, 2024

($ million)

EBITDA

EBIT

Net
Income

EPS
(Diluted
US
cents)(1)

EBITDA

EBIT

Net
Income

EPS
(Diluted
US
cents)(1)

Net income attributable to Amcor

1,048

70.5

730

50.5

Net income attributable to non-controlling
interests

Tax expense

193

163

Interest expense, net

259

310

Depreciation and amortization

569

EBITDA, EBIT, Net income and EPS

2,080

1,510

1,048

70.5

1,782

1,213

730

50.5

Impact of highly inflationary accounting

1.9

3.7

Property and other losses, net

0.1

—

Restructuring and other related activities, net(2)

(90)

(6.0)

6.7

CEO Transition costs

—

0.6

Other

—

1.5

Amortization of acquired intangibles (3)

160

10.8

167

11.6

Tax effect of above items

(57)

(4.0)

(62)

(4.4)

Adjusted EBITDA, EBIT, Net income and EPS

2,018

1,608

1,089

73.3

1,962

1,560

1,015

70.2

Reconciliation of adjusted growth to comparable constant currency growth

% growth – Adjusted EBITDA, EBIT, Net income, and EPS

(3)

(7)

(4)

% items affecting comparability(4)

% currency impact

(1)

% comparable constant currency growth

(1)

(5)

(2)

Adjusted EBITDA

2,018

1,962

Interest paid, net

(248)

(295)

Income tax paid

(225)

(253)

Purchase of property, plant and equipment and
other intangible assets

(526)

(492)

Proceeds from sales of property, plant and
equipment and other intangible assets

Movement in working capital

(229)

(15)

Other

Adjusted Free Cash Flow

848

952

(1) Calculation of diluted EPS for the twelve months ended June 30, 2024 excludes net income attributable to shares to be repurchased under forward contracts of $3 million. Calculation of diluted EPS for the twelve months ended June 30, 2023 excludes net income attributable to shares to be repurchased under forward contracts of $7 million.

(2) Includes incremental restructuring and other costs attributable to group wide initiatives to partly offset divested earnings from the Russian business.

(3) Amortization of acquired intangible assets from business combinations.

(4) Reflects the impact of acquired, disposed, and ceased operations.

Reconciliation of adjusted EBIT by reporting segment

Three Months Ended June 30, 2023

Three Months Ended June 30, 2024

($ million)

Flexibles

Rigid
Packaging

Other

Total

Flexibles

Rigid
Packaging

Other

Total

Net income attributable to Amcor

181

257

Net income attributable to non-
controlling interests

Tax expense

Interest expense, net

EBIT

283

(22)

323

351

(29)

395

Impact of highly inflationary accounting

—

(2)

—

(2)

Property and other losses, net

—

Restructuring and other related
activities, net(1)

—

Other

(6)

—

Amortization of acquired intangibles(2)

—

Adjusted EBIT

387

(24)

436

403

(24)

454

Adjusted EBIT / sales %

13.9 %

8.1 %

11.9 %

15.0 %

8.8 %

12.8 %

Reconciliation of adjusted growth to comparable constant currency growth

% growth – Adjusted EBIT

—

% items affecting comparability(3)

—

% currency impact

(1)

—

% comparable constant currency

—

(1) Includes incremental restructuring and other costs attributable to group wide initiatives to partly offset divested earnings from the Russian business.

(2) Amortization of acquired intangible assets from business combinations.

(3) Reflects the impact of acquired, disposed, and ceased operations.

Twelve Months Ended June 30, 2023

Twelve Months Ended June 30, 2024

($ million)

Flexibles

Rigid
Packaging

Other

Total

Flexibles

Rigid
Packaging

Other

Total

Net income attributable to Amcor

1,048

730

Net income attributable to non-
controlling interests

Tax expense

193

163

Interest expense, net

259

310

EBIT

1,357

225

(72)

1,510

1,147

185

(119)

1,213

Impact of highly inflationary
accounting

—

Property and other losses, net

—

Restructuring and other related
activities, net(1)

(100)

(90)

—

CEO transition costs

—

Other

(18)

—

Amortization of acquired intangibles(2)

155

—

160

164

—

167

Adjusted EBIT

1,429

265

(86)

1,608

1,395

259

(94)

1,560

Adjusted EBIT / sales %

12.8 %

7.5 %

10.9 %

13.5 %

7.8 %

11.4 %

Reconciliation of adjusted growth to comparable constant currency growth

% growth – Adjusted EBIT

(2)

—

(3)

% items affecting comparability(3)

—

% currency impact

(1)

(2)

—

(1)

% comparable constant currency growth

—

(4)

—

(1)

(1) Includes incremental restructuring and other costs attributable to group wide initiatives to partly offset divested earnings from the Russian business.

(2) Amortization of acquired intangible assets from business combinations.

(3) Reflects the impact of acquired, disposed, and ceased operations.

Reconciliation of net debt

($ million)

June 30, 2023

June 30, 2024

Cash and cash equivalents

(689)

(588)

Short-term debt

Current portion of long-term debt

Long-term debt excluding current portion

6,653

6,603

Net debt

6,057

6,111

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SOURCE Amcor

Technology

Hyundai Motor Group Executive Chair Euisun Chung Announces Physical AI Vision at San Francisco AI Summit

Published

21 minutes ago

July 25, 2026

Hyundai Motor Group shares roadmap for realizing its Physical AI vision and collaboration strategy with global tech leaders at the San Francisco AI SummitExecutive Chair Euisun Chung presented, “Hyundai Motor Group is evolving beyond the traditional boundaries of automotive manufacturing to become a Physical AI solution company,” adding, “The ultimate Physical AI vision we pursue is the realization of integrated intelligence at the city level”The Group to leverage manufacturing competitiveness and leading robotics capabilities centered on Boston Dynamics, while establishing a data flywheel system connecting real-world operational data with continuous AI model advancementThe Group to leverage strategic partnerships with global technology leaders, including NVIDIA and Waymo, as well as Boston Dynamics’ strategic partnership with Google DeepMindThe Group to collaborate with NVIDIA to develop a Robot Reference Platform that combines Hyundai Motor Group’s and NVIDIA’s Physical AI capabilities

… The initiative to support Korea’s Physical AI industry through an open ecosystem

The Group to cultivate strategic domestic hubs through investments in Saemangeum AI Valley and future advanced industries in Korea’s Yeongnam region

SAN FRANCISCO, July 25, 2026 /PRNewswire/ — Hyundai Motor Group (the Group) Executive Chair Euisun Chung today outlined the Group’s vision and strategy for Physical AI at the San Francisco AI Summit held in San Francisco, California.

The event brought together approximately 150 attendees, including Executive Chair Chung, business leaders from major Korean companies, executives from leading U.S. technology firms, startup representatives and students.

At the summit, Executive Chair Chung presented the Group’s roadmap for advancing Physical AI and outlined strategic collaboration plans with global technology leaders.

“Hyundai Motor Group is evolving beyond the traditional boundaries of automotive manufacturing by expanding into autonomous driving, robotics and AI Defined Factories, accelerating our transformation into a Physical AI solution company.” — Hyundai Motor Group Executive Chair Euisun Chung

Accelerating the Transition to a Physical AI Solution Company

Hyundai Motor Group’s Physical AI vision extends beyond intelligent devices such as vehicles and robots to intelligent spaces, including AI factories where AI seamlessly connects and optimizes entire operations. Ultimately, the Group envisions integrated intelligence at the city level, where urban infrastructure is organically connected and operated through AI.

A key differentiator for the Group is its ability to create a data flywheel that continuously connects real-world operations with AI advancement. Drawing on extensive experience in large-scale manufacturing, mobility, robotics and service operations, the Group is positioned to deploy, refine and scale Physical AI technologies in real industrial environments.

Executive Chair Chung also outlined strategic partnerships with leading technology companies, including NVIDIA and Waymo, as well as Boston Dynamics’ strategic partnership with Google DeepMind, to further advance Physical AI capabilities.

By combining Hyundai Motor Group’s manufacturing competitiveness, mobility and robotics technologies and extensive operational data with the AI infrastructure and algorithm capabilities of global technology leaders, the Group aims to help foster a new innovation ecosystem for the Physical AI era.

Executive Chair Chung also introduced initiatives designed to support the growth of Korea’s robotics and AI ecosystem, including the development of a Robot Reference Platform with NVIDIA that combines Hyundai Motor Group’s and NVIDIA’s Physical AI capabilities, as well as investments in initiatives such as the Saemangeum AI Valley.

Physical AI Vision: From Intelligent Devices to Integrated Intelligence at the City Level

During the summit, Executive Chair Chung presented Hyundai Motor Group’s Physical AI vision.

“The ultimate Physical AI vision Hyundai Motor Group pursues begins with intelligent devices such as vehicles and robots, expands to intelligent spaces such as AI factories, and ultimately realizes integrated intelligence at the city level, where urban infrastructure is seamlessly connected and operated.” — Hyundai Motor Group Executive Chair Chung

The Group’s vision begins with intelligent devices, where AI capabilities enhance vehicles and robots. It then expands to intelligent spaces, including AI factories where AI autonomously integrates logistics, production and quality management across entire operations.

Ultimately, Hyundai Motor Group envisions city-level intelligence, where critical infrastructure and assets — including energy, mobility and robotics systems — are connected and optimized in real time.

Executive Chair Chung also highlighted the Group’s key strengths in realizing its Physical AI vision:

World-class manufacturing competitiveness: Hyundai Motor Group has built extensive expertise through decades of operating global manufacturing facilities, managing quality systems and optimizing supply chains. This foundation enables the Group to apply AI technologies to products, processes and services while rapidly validating and scaling innovations in real-world environments.Leading robotics capabilities: Hyundai Motor Group has established robotics as a key pillar of its future business portfolio. Boston Dynamics’ quadruped robot Spot®, logistics robot Stretch®, and Hyundai Motor Group Robotics LAB’s next-generation mobile robot platform MobED are recognized for combining technological competitiveness with real-world applicability.

In particular, the humanoid robot Atlas® is emerging as a representative example of Physical AI, supporting and collaborating with people across manufacturing, logistics and mobility environments.

Establishing a data flywheel system: Hyundai Motor Group is establishing a data flywheel system that leverages data generated across manufacturing operations, vehicles, logistics systems and robotics demonstrations to continuously advance AI models. Enhanced algorithms are then reapplied to real-world operations, creating a virtuous cycle that improves performance and strengthens Physical AI capabilities.

Accelerating the Future of Physical AI Through Partnerships with Global Tech Leaders

Executive Chair Chung also outlined concrete initiatives to position Hyundai Motor Group as a leader in human-centered Physical AI through strategic collaborations with NVIDIA and Waymo, as well as Boston Dynamics’ strategic partnership with Google DeepMind.

“By combining Hyundai Motor Group’s strengths in manufacturing, robotics and data with the capabilities of global technology leaders, we can help create a new innovation ecosystem for the Physical AI era.” — Hyundai Motor Group Executive Chair Euisun Chung

NVIDIA – Advancing Physical AI infrastructure and talent development

Hyundai Motor Group is expanding collaboration with NVIDIA to strengthen Physical AI infrastructure and cultivate AI talent. Building on a supply agreement for 50,000 NVIDIA Blackwell GPUs and a memorandum of understanding signed last year to advance Korea’s Physical AI capabilities, the Group is pursuing a range of initiatives, including the establishment of Hyundai Motor Group Robot Application Center, as well as various collaborations aimed at strengthening Korea’s Physical AI infrastructure and AI talent ecosystem, including the NVIDIA’s AI Technology Center.

In manufacturing, the Group is leveraging NVIDIA’s platform to create more sophisticated digital twins of production facilities, enhancing process design, operational optimization and validation efficiency. The collaboration also includes the integration of NVIDIA’s autonomous driving solutions, including automotive semiconductors, sensors and architecture, with Hyundai Motor Group vehicle platforms.

Waymo – Strengthening autonomous driving collaboration

Hyundai Motor Group continues to strengthen its strategic partnership with Waymo in the autonomous driving sector to support the development of a safe and innovative autonomous driving ecosystem. Autonomous driving vehicles require a wide range of specialized capabilities, including redundant systems for steering, braking, power and communications, dedicated features such as power-operated doors, as well as enhanced functional safety and cybersecurity technologies.

Hyundai Motor Group plans to produce IONIQ 5 vehicles with specific autonomous-ready modifications at Hyundai Motor Group Metaplant America (HMGMA) in Georgia.

Google DeepMind – Accelerating next-generation humanoid robotics

Boston Dynamics has established a strategic partnership with Google DeepMind to accelerate the development of next-generation humanoid robots. Advanced AI models and training systems are essential for robots to perform complex tasks in real-world environments and collaborate effectively with people. Through this partnership, Boston Dynamics robots are expected to achieve greater autonomy and adapt more effectively to complex operating environments.

Hyundai Motor Group plans to establish a robot production facility in the U.S. with an annual capacity of up to 30,000 units by 2028. The Atlas humanoid robot will first be deployed at production facilities including HMGMA before broader deployment is expanded through phased validation.

Building an Open Ecosystem Through the Robot Reference Platform and Continued Investment in Korea’s Physical AI Future

Executive Chair Chung also outlined initiatives aimed at supporting the growth of Korea’s Physical AI ecosystem through open collaboration and continued investment.

“The outcomes of collaboration with global technology leaders should contribute to the growth of Korea’s Physical AI industry. To that end, Hyundai Motor Group plans to foster an open ecosystem that supports innovation in robotics and AI technologies.” — Hyundai Motor Group Executive Chair Euisun Chung

Key initiatives to build an open ecosystem for robotics and AI innovation include:

Robot Reference Platform: Hyundai Motor Group and NVIDIA are collaborating to develop a Robot Reference Platform that combines Hyundai Motor Group’s and NVIDIA’s Physical AI capabilities.

The platform will provide research robot models to universities, research institutes and startups, helping foster an open ecosystem that supports technological innovation and the development of Physical AI talent while contributing to the broader growth of Korea’s robotics and AI industries.

Supporting universities, research institutes and startups: The Robot Reference Platform is expected to provide universities, research institutes and startups with a standardized hardware and software environment, enabling them to more easily develop and validate Physical AI technologies. The initiative aims to help address challenges faced by organizations with innovative ideas but limited access to commercialization opportunities and validation infrastructure.

Hyundai Motor Group is also continuing large-scale investments aimed at driving the next leap forward in Korea’s industrial and technology ecosystem. Continued investments in Korea’s industrial and technology ecosystem include:

Saemangeum AI Valley: In the Saemangeum region of Jeonbuk State, the Group is developing Saemangeum AI Valley, which includes an approximate KRW 9 trillion investment in AI data centers, robotics manufacturing clusters, electrolyzer plants and AI hydrogen city infrastructure.

In particular, the robotics manufacturing cluster will serve not only as a production base for the Group’s own robotics products, but also as a robotics foundry that provides manufacturing services for small and medium-sized enterprises that lack manufacturing expertise.

Advanced industrial hubs in the Yeongnam region: Hyundai Motor Group plans to invest a total of KRW 42 trillion over the next decade to foster advanced industrial hubs focused on AI-driven manufacturing, future aerospace industries and sustainable energy infrastructure.

Through these initiatives, Hyundai Motor Group aims to strengthen key foundations for the Physical AI era, including data and energy infrastructure, robotics production capabilities and real-world validation capabilities. The Group also expects these investments to contribute to enhanced industrial competitiveness, balanced regional development, job creation and broader economic vitality in Korea.

About Hyundai Motor Group

Hyundai Motor Group is a global enterprise that has created a value chain based on mobility, steel, and construction, as well as logistics, finance, IT, and service. With about 250,000 employees worldwide, the Group’s mobility brands include Hyundai, Kia, and Genesis. Armed with creative thinking, cooperative communication, and the will to take on any challenges, we strive to create a better future for all.

More information about Hyundai Motor Group can be found at: http://www.hyundaimotorgroup.com or Newsroom: Media Hub by Hyundai, Kia Global Newsroom, Genesis Newsroom

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SOURCE Hyundai Motor Company

Technology

Tencent Brings Together AI and Games to Help Preserve and Share Cultural Heritage of New UNESCO Site in Jingdezhen

Published

1 hour ago

July 25, 2026

Tencent applies AI and games to protect, reconstruct, and promote one of the world’s oldest porcelain traditions at newly inscribed UNESCO siteDigital initiatives create a new model for technology-driven heritage preservation globally using a multimodal AI dataset, AI-assisted artifact restoration, and interactive virtual experiences

SHENZHEN, China, July 25, 2026 /PRNewswire/ — Tencent (00700.HK) today announced the launch of Digital Jingdezhen: Porcelain Craft Adventure, an AI-powered cultural heritage game that enables users to explore Jingdezhen’s porcelain-making traditions and experience traditional craft techniques through interactive play. The launch coincides with the inscription of the Jingdezhen Handicraft Porcelain Industry Sites on the United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage List.

Digital Jingdezhen is part of a broader cultural innovation initiative that applies Tencent’s AI and game technologies. Guided by Tencent’s vision of “Tech for Good”, the initiative leverages digital preservation to keep Jingdezhen’s thousand-year-old porcelain culture alive and relevant today, creating a living heritage with sustainable value and broad public engagement, and building a model that could be carried to heritage sites around the world.

Digital Preservation: Restoring and Unlocking Heritage with AI

Jingdezhen has a thousand years of living heritage; centuries of tradition are still active in its kilns today. To preserve this legacy, a cornerstone of the project was the Jingdezhen Porcelain Cultural Heritage Multimodal AI Dataset.

Over decades, historical records, heritage information, and craft specifications have accumulated into a massive volume of data. Tencent applied Optical Character Recognition (OCR), Natural Language Processing (NLP), and knowledge graph technologies to transform these dispersed materials into structured digital resources that can be analyzed, extracted, verified, and traced back to their original sources.

The dataset contains more than 30,000 documentary records, over 5,000 ceramic gene specimens, and data on nearly 1,000 representative ceramic artifacts in collections worldwide. It provides a digital foundation for cultural research, exhibition development, public interpretation and AI-powered heritage applications.

Building on this foundation, Tencent has developed a range of industry- and public-facing applications, including the Jingdezhen Ancient Ceramics Gene Database, the World Ceramics Interactive Map, and the Digital Jingdezhen AI Companion, providing researchers, heritage professionals, and the public with innovative AI-powered tools to explore and understand porcelain heritage.

Digital Activation: Bringing Jingdezhen’s Porcelain Heritage to Life Through AI and Games

To bring the public closer to Jingdezhen and its porcelain-making traditions, Digital Jingdezhen: Porcelain Craft Adventure utilizes AI-assisted Procedural Content Generation (PCG) to create the first large-scale digital recreation of the city’s five major porcelain heritage sites and historical production scenes. By rapidly mapping out town layouts and automatically generating architectural structures, decorative elements, and pedestrians, the technology brings Jingdezhen’s historic townscape back to life in the digital world.

The game also features high-quality AI digital humans built on large language models and the Jingdezhen Porcelain Cultural Heritage Multimodal AI Dataset. Through AI voice-driven facial expressions and Tencent Games’ proprietary animation technology, it creates warm, human-centered interactive experiences that make historical knowledge tangible and relatable. At the same time, AI-powered 3D generation allows users to quickly transform an uploaded image into a 3D porcelain form, lowering the barrier to participation and enabling anyone to turn creative inspiration into tangible ceramic forms in the digital space.

Continuing Heritage: Mobilizing the Community

Ensuring the longevity of Jingdezhen’s legacy requires active public participation. Tencent developed the Digital Heritage Guardian (Jingdezhen), a volunteer program built within the Weixin ecosystem. The program enables the public to support the upkeep and stewardship of physical heritage sites, creating a practical channel for community involvement in heritage protection.

“Our work in Jingdezhen is a testament to how ‘AI for Good’ can breathe new life into ancient traditions,” said Zhan Shu, Head of Digital Culture Lab, Tencent. “Working alongside dedicated heritage experts, we have contributed our capabilities in AI and digital technologies to unlock decades of dormant archives for this incredible new UNESCO site. We are proud to help bridge the gap between the thousand-year porcelain heritage and the digital era, creating new ways for the global public to connect with Jingdezhen’s living history, and a model for heritage sites worldwide.”

For media queries, please contact: gc@tencent.com

About Tencent

Tencent is a global technology and entertainment company focused on creating connections and experiences that matter. Founded in 1998, Tencent is driven by its mission to create “Value for Users” and apply “Tech for Good.”

Tencent’s communication and social services connect more than one billion people around the world, helping them to keep in touch with friends and family, access transportation, pay for daily necessities, and even be entertained. Tencent also develops and publishes some of the world’s most popular video games and other high-quality digital content, delivering rich and immersive interactive entertainment experiences. Tencent also offers a range of services such as cloud computing and other enterprise services to support our clients’ digital transformation and business growth. Headquartered in Shenzhen, Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since June 2004.

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SOURCE Tencent