[sheet: Cover]

[sheet: Cover]
Field | Value
Document Title | APA Application — Financial Data Appendix
Prepared By | Calderwood & Harkness LLP
C&H Matter Number | 1032-00006
C&H Billing Code | HSAG-TP-2025
Applicant (Parent) | Halcyon Semiconductor AG (HSAG)
Applicant (US Subsidiary) | Halcyon Semiconductor Inc. (HSI)
HSAG Steuernummer | 203/118/04527
HSAG VAT ID (USt-IdNr.) | DE 814 723 956
HSI EIN | 84-2917630
HSI Delaware File Number | 7341825
HSAG ISIN | DE000HSA0017
HSAG WKN | HSA001
APA Type | Bilateral (US–Germany) under Article 25, US-Germany Income Tax Treaty (signed June 29, 2006)
Applicable US Guidance | Rev. Proc. 2015-41; IRC §§ 482, 6662(e), 6662(h); Treas. Reg. §§ 1.482-1 through 1.482-9
Proposed APA Term (Prospective) | January 1, 2025 – December 31, 2029 (5 years)
Proposed Rollback Period | January 1, 2022 – December 31, 2024 (3 years)
Total Covered Period | 8 tax years (FY 2022–2029)
Financial Data Coverage | FY 2020–2024 (5 fiscal years)
HSAG Fiscal Year-End | December 31
HSI Fiscal Year-End | December 31
HSAG Independent Auditor | Gresham Whitfield LLP
HSAG Group Audit Partner | Simon Cardwell (London)
HSI US Engagement Audit Partner | Janet Okonkwo (Houston)
Economic Consultant | Meridian Economics GmbH
German Tax Counsel | Kettner Pflüger Rechtsanwälte
Date Prepared | July 2025
Confidential — Subject to Rev. Proc. 2015-41
[sheet: HSI Income Statement]
Line Item | FY 2020 (USD) | FY 2021 (USD) | FY 2022 (USD) | FY 2023 (USD) | FY 2024 (USD)
Net Revenue (Third-Party US Sales) | 2850000000 | 3210000000 | 3540000000 | 3780000000 | 4120000000
Cost of Goods Sold | 2380000000 | 2660000000 | 2910000000 | 3100000000 | 3380000000
  of which: Intercompany Purchases from HSAG (Tangible Goods) | 780000000 | 870000000 | 940000000 | 1010000000 | 1076000000
  of which: Third-Party COGS | 1600000000 | 1790000000 | 1970000000 | 2090000000 | 2304000000
Gross Profit | 470000000 | 550000000 | 630000000 | 680000000 | 740000000
Gross Margin (%) | 16.49% | 17.13% | 17.80% | 17.99% | 17.96%
Operating Expenses (SG&A + R&D allocated) | 355000000 | 398000000 | 444000000 | 492000000 | 542200000
  of which: Selling, General & Administrative | 245000000 | 270000000 | 295000000 | 322000000 | 348700000
  of which: R&D / Design Center Costs | 110000000 | 128000000 | 149000000 | 170000000 | 193500000
Operating Income (EBIT) | 115000000 | 152000000 | 186000000 | 188000000 | 197800000
Operating Margin (%) | 4.04% | 4.74% | 5.25% | 4.97% | 4.80%
Interest Expense (Ridgeline National Bank Revolver & Other) | 8500000 | 7200000 | 12100000 | 18500000 | 16800000
Other Income / (Expense) | 2100000 | 1800000 | -500000 | 3200000 | 2400000
Pre-Tax Income | 108600000 | 146600000 | 173400000 | 172700000 | 183400000
Income Tax Provision | 25200000 | 34100000 | 40300000 | 40100000 | 42600000
Net Income | 83400000 | 112500000 | 133100000 | 132600000 | 140800000
[sheet: HSAG Consolidated P&L]
Line Item | FY 2020 (EUR) | FY 2021 (EUR) | FY 2022 (EUR) | FY 2023 (EUR) | FY 2024 (EUR)
Consolidated Revenue | 5980000000 | 6720000000 | 7410000000 | 8120000000 | 8740000000
Cost of Revenue | 3830000000 | 4290000000 | 4720000000 | 5170000000 | 5570000000
Gross Profit | 2150000000 | 2430000000 | 2690000000 | 2950000000 | 3170000000
Gross Margin (%) | 35.95% | 36.16% | 36.30% | 36.33% | 36.27%
Research & Development Expenditure (Total) | 980000000 | 1080000000 | 1190000000 | 1310000000 | 1420000000
  of which: Qualified CSA R&D Costs | 680000000 | 750000000 | 830000000 | 910000000 | 998200000
Selling, General & Administrative | 520000000 | 570000000 | 620000000 | 680000000 | 730000000
Other Operating Income / (Expense) | -50000000 | -30000000 | -40000000 | -60000000 | -50000000
EBITDA | 1720000000 | 1950000000 | 2160000000 | 2390000000 | 2620000000
EBITDA Margin (%) | 28.76% | 29.02% | 29.15% | 29.43% | 29.98%
Depreciation & Amortization | 620000000 | 700000000 | 770000000 | 880000000 | 1050000000
Operating Income (EBIT) | 1100000000 | 1250000000 | 1390000000 | 1510000000 | 1570000000
EBIT Margin (%) | 18.39% | 18.60% | 18.76% | 18.60% | 17.96%
Employees (Global) | 18500 | 19200 | 20100 | 21300 | 22400
Employees (Germany) | 12200 | 12800 | 13400 | 14000 | 14600
[sheet: IC Tangible Goods Schedule]
Description | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024
Intercompany Wafer/Die Sales — EUR (€) | 640000000 | 720000000 | 790000000 | 880000000 | 987600000
Average Annual EUR/USD Exchange Rate | 1.1422 | 1.1827 | 1.053 | 1.0813 | 1.0896
Intercompany Wafer/Die Sales — USD Equivalent ($) | 731000000 | 851500000 | 831900000 | 951700000 | 1076000000
HSI Net Revenue ($) | 2850000000 | 3210000000 | 3540000000 | 3780000000 | 4120000000
IC Purchases as % of HSI Net Revenue | 25.65% | 26.53% | 23.50% | 25.18% | 26.12%
HSI Operating Income ($) | 115000000 | 152000000 | 186000000 | 188000000 | 197800000
HSI Operating Margin (%) | 4.04% | 4.74% | 5.25% | 4.97% | 4.80%
Transfer Pricing Method | CPM/TNMM | CPM/TNMM | CPM/TNMM | CPM/TNMM | CPM/TNMM
Tested Party | HSI | HSI | HSI | HSI | HSI
Profit Level Indicator | Operating Margin | Operating Margin | Operating Margin | Operating Margin | Operating Margin
Benchmark IQR — Low (OM) | 2.8% | 2.8% | 2.8% | 2.8% | 2.8%
Benchmark IQR — Median (OM) | 4.4% | 4.4% | 4.4% | 4.4% | 4.4%
Benchmark IQR — High (OM) | 6.1% | 6.1% | 6.1% | 6.1% | 6.1%
HSI OM Within IQR? | Yes | Yes | Yes | Yes | Yes
Number of Comparable Companies | 17 | 17 | 17 | 17 | 17
Comparable Period | 2020–2024 | 2020–2024 | 2020–2024 | 2020–2024 | 2020–2024
Master IC Supply Agreement Date | Eff. Jan 1, 2019 | Amended Jul 1, 2022
[sheet: IC Royalty Schedule]
Description | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024
HSI Net Revenue (Third-Party US Sales, $) | 2850000000 | 3210000000 | 3540000000 | 3780000000 | 4120000000
IP-Attributable Revenue Share (%) | 18.1% | 18.1% | 18.1% | 18.1% | 18.1%
IP-Attributable Revenue ($) | 515850000 | 581010000 | 640740000 | 684180000 | 745720000
Contractual Royalty Rate | 6.0% | 6.0% | 6.0% | 6.0% | 6.0%
Royalty Payment — USD ($) | 30951000 | 34860600 | 38444400 | 41050800 | 44743200
Weighted Avg EUR/USD Payment-Date Rate | 1.138 | 1.179 | 1.049 | 1.077 | 1.0307
Royalty Payment — EUR (€) | 27198000 | 29568000 | 36648000 | 38116000 | 68400000
IP License Agreement Effective Date | Jan 1, 2019
Transfer Pricing Method | CUT | CUT | CUT | CUT | CUT
Corroboration | Residual Profit Split | Residual Profit Split | Residual Profit Split | Residual Profit Split | Residual Profit Split
CUT Benchmark IQR — Low (Royalty Rate) | 3.5% | 3.5% | 3.5% | 3.5% | 3.5%
CUT Benchmark IQR — Median (Royalty Rate) | 5.6% | 5.6% | 5.6% | 5.6% | 5.6%
CUT Benchmark IQR — High (Royalty Rate) | 8.2% | 8.2% | 8.2% | 8.2% | 8.2%
HSAG Royalty Rate Within IQR? | Yes | Yes | Yes | Yes | Yes
Number of Comparable Uncontrolled Agreements | 8 | 8 | 8 | 8 | 8
Data Sources | Clearpoint Royalty Database; SEC filings
FY 2024 Royalty (USD Equivalent Cross-Check) | $70,500,000
[sheet: IC Cost Sharing Schedule]
Description | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024
HSAG Total R&D Expenditure (€) | 980000000 | 1080000000 | 1190000000 | 1310000000 | 1420000000
Qualified CSA R&D Costs (€) | 680000000 | 750000000 | 830000000 | 910000000 | 998200000
HSI Anticipated Benefit Share (%) | 22.5% | 22.5% | 22.5% | 22.5% | 22.5%
HSI Cost-Sharing Contribution (€) | 153000000 | 168750000 | 186750000 | 204750000 | 224595000
HSI Cost-Sharing Contribution (€, rounded) | 153000000 | 168800000 | 186800000 | 204800000 | 224600000
Blended EUR/USD Rate for CSA Payments | 1.14 | 1.181 | 1.051 | 1.079 | 1.0298
HSI Cost-Sharing Contribution — USD Equivalent ($) | 174420000 | 199388000 | 196309000 | 220977000 | 231300000
HSAG Cost-Sharing Share (%) | 77.5% | 77.5% | 77.5% | 77.5% | 77.5%
HSAG Cost-Sharing Contribution (€) | 527000000 | 581250000 | 643250000 | 705250000 | 773600000
CSA Effective Date | July 15, 2018
PCT Buy-In Payment (at inception) | $312,500,000
PCT Valuation Method | Income Method
PCT discount Rate | 11.8%
PCT Projection Period | 15 years
PCT Valuation Firm | Stonebridge Valuation Partners LLC
PCT Valuation Contact | Marcus Reinhardt, Managing Director
Benefit Share Review Frequency | Triennial
Applicable Regulation | Treas. Reg. § 1.482-7
Next Triennial Review Due | 2027