Annual Report 2018
Experts for Smart Sensor Solutions
Experts for Smart Sensor Solutions
Sensirion is a pure-play sensor company at the forefront of
sensor innovation, and has demonstrated a strong track record of
developing and manufacturing sophisticated and cost-effective
environmental and flow sensor solutions for the automotive, medical,
industrial, and consumer markets. Founded in 1998 as a spin-off
company of the Swiss Federal Institute of Technology in Zurich
(ETH Zurich), Sensirion has 20 years of experience in creating best-
in-class sensor solutions for a variety of demanding customer
applications, including those in which the sensors perform mission-
critical functions.
Particulate Matter Sensors (PM2.5 Sensors)
By accurately recognizing particle sizes and offering
unique long-term stability, our sensor represents a technology
breakthrough in optical particulate matter sensing.
2
Sensirion Annual Report 2018 Table of Contents
Essentials
Key Figures
Letter to the Shareholders
Strategy
Annual Report
Markets
Sensirion Worldwide
Products
Innovation
Sustainability
Employees and Culture
Corporate Governance
Compensation Report
Financial Report
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Financial Statements of Sensirion Holding AG
Notes to the Financial Statements of Sensirion Holding AG
Shareholder Information
Shareholder Information
5
7
10
15
22
24
26
27
28
30
52
70
75
124
126
135
Table of Contents
3
Sensirion Annual Report 2018 Revenue CHF 174.8 million (+18 %)
11 % organic, 6 % inorganic growth, 1 % FX effects
Adjusted EBITDA margin 16 %
REVENUE (IN CHF MILLION)
NUMBER OF EMPLOYEES (FTE) AS OF 31 DECEMBER
174.8
148.0
131.4
735
783
534
2016
2017
2018
2016
2017
2018
REVENUE BY MARKET 2018 (2017)
REVENUE BY REGION 2018 (2017)
8 % (9 %)
39 % (40 %)
31% (28 %)
22% (23 %)
21% (22 %)
32% (32 %)
47% (46 %)
Automotive
Industrial
Medical
Consumer
APAC
EMEA
Americas
Diversified revenue growth resulted from all end markets
Successful launch of CO2 and PM2.5 sensors
Decisive progress in Sensirion Automotive Solutions
4
Key Figures
Sensirion Annual Report 2018 Key Figures
Consolidated, in millions of CHF
31 December 2018
in %
31 December 2017
Revenue
Gross profit
– as % of revenue
Operating profit (loss)
– as % of revenue
Profit (loss) for the period
– as % of revenue
Earnings per share (in CHF)
EBITDA1
– as % of revenue
Adjusted EBITDA2
– as % of revenue
Cash flow from operating activities
Capital expenditures3
Free cash flow4
Total assets
Total liabilities
Total equity
Net cash (Net debt)5
18 .1%
174.8
93.0
53.2 %
(4.4)
(219.0 %)
(2.5 %)
(6.4)
(733.8 %)
(44.0 %)
6.2 %
(3.7 %)
(0.45)
9.2
5.3 %
27.8
15.9 %
26.4
(13.5)
22.8
148.0
85.0
57.5 %
3.7
2.5 %
(0.8)
(0.5 %)
(0.07)
16.5
11.1 %
26.2
17.7 %
10.6
(16.4)
(40.5)
31 December 2018
31 December 2017
214.9
54.5
160.4
42.6
176.1
115.1
61.0
(69.3)
735
Number of employees (FTE)
783
6.5 %
1 Defined as profit or loss for the period excluding net interest expenses, income taxes, depreciation, and amortization.
2 Defined as EBITDA adjusted for impairment loss in 2017; costs related to the IPO Loyalty Share Program, including social security expenses, expenses on
social security relating to the gain in excess of formula value, past service credit on the defined benefit obligation in 2018; net finance costs excluding net
interest expenses, share of profit or loss of equity-accounted investees, net of tax, external costs related to IPO, and acquisition-related costs or income in
2017 and 2018.
3 Defined as the sum of acquisition of property, plant, and equipment, proceeds from sale of property, plant, and equipment, acquisition of intangible assets,
and development expenditure.
4 Defined as the sum of cash flows from operating activities and cash flows from investing activities.
5 Defined as the sum of cash and cash equivalents less loans and borrowings less lease liabilities (current and non-current).
Key Figures
5
Sensirion Annual Report 2018 Marc von Waldkirch, CEO (left)
Moritz Lechner, Co-Chairman (center)
Felix Mayer, Co-Chairman (right)
6
KapiteltitelSensirion Annual Report 2018 Dear Shareholders
2018 was a successful year for Sensirion, with diversified revenue growth in all end markets. We achieved important
milestones in the strategic development of the company: on the one hand, the successful initial public offering (IPO) in
March 2018, and on the other hand, we made great progress in positioning Sensirion as a supplier of automotive
sensor solutions and managed to increase our footprint in Asia. In addition, the successful launch of the carbon dioxide
sensor and the particulate matter sensor significantly expands our product range in the field of environmental sensors.
Expectations Communicated at IPO Achieved
The 2018 results show that the expectations communicated at the IPO have been achieved. After a very dynamic
first half, which exceeded expectations, the second half of the year resulted in lower revenue growth as expected.
The reasons for this development were, on the one hand, inventory optimizations of important customers and, on the
other hand, the global macroeconomic environment which noticeably slowed down in the last months. In all end
markets, we currently observe uncertainty as to how the global economy will further develop.
Consolidated revenue amounted to CHF 174.8 million, +18 % compared to the previous year, of which 11 % was
organic, 6 % inorganic, and 1 % due to foreign exchange effects. As a result, consolidated revenue was at the upper
end of the indication given in connection with the IPO in March 2018. With a gross margin of 53 % and, after adjust-
ing for one-off effects, an adjusted EBITDA of CHF 27.8 million (16 % of revenue), the expectations communicated
at the IPO could be achieved. One-off effects, in sum CHF 18.6 million, primarily attributable to the “IPO Loyalty
Share Program” and other IPO-related costs, resulted in an operating loss of CHF 4.4 million and a net loss of
CHF 6.4 million for the period. Generated free cash flow was CHF 22.8 million. Together with the net proceeds from
the IPO, this free cash flow yielded a net cash position of CHF 42.6 million as of 31 December 2018.
All End Markets Contributed to Revenue Growth
With growth rates of 3 % to 31 %, all four strategic markets contributed to the consolidated group revenue. Distribu-
tion of the revenues by markets (automotive 31 %, medical 22 %, industrial 39 %, consumer 8 %) and region (APAC
47 %, EMEA 32 %, Americas 21 %) remained stable compared to 2017.
In the automotive market, revenue increased by CHF 12.9 million to CHF 53.9 million (+ 31 %, of which 8 % was
organic and 23 % inorganic). Organic growth mainly came from higher volumes of both humidity and gas flow
sensors, which are increasingly applied in platforms of middle-class cars. Humidity sensors are mainly employed to
automatically dehumidify the windshield (anti-fogging) and optimize energy consumption when controlling the
climate of the car cabin. The new generation of gas flow sensors, used to measure the mass flow in the air intake of
combustion engines, generated its first significant revenue, too. The acquisition of the sensor module business of
Auto Industrial Company (AIC) in South Korea and China, fully consolidated from September 2017 onward, led to the
inorganic growth. Sales volumes of the acquired auto-defogging, ambient temperature, and ionizer modules devel-
oped as expected. This acquisition significantly strengthens our position as a direct supplier to automotive OEMs.
Revenue in the medical market increased by 15 % to CHF 38.6 million compared to the previous year. Growth
resulted primarily from volume increases of existing projects employing differential pressures sensors in therapeutic
devices for sleep apnea and mass flow meters in ventilators.
Letter to the Shareholders
7
Sensirion Annual Report 2018 The diversified industrial market, composed of the markets gas meters, home appliances, heating, ventilation, and air con-
ditioning, as well as industrial automation, showed revenue growth of 14 % to CHF 68.6 million. Revenues through distri-
bution sales channels from existing and various new customers developed particularly well. The first significant revenue from
the air quality sensor launched in summer 2017 was achieved, also because of a larger air purifier project. Revenue from
gas meters projects increased owing to an increase of market share of our technology in the Italian market.
Revenue in the consumer market amounted to CHF 13.7 million (+3 %). Revenue from sales of humidity sensors for smart
home applications through distribution channels particularly increased. In addition, the new air quality sensor generated
its first relevant revenue, especially through the first application in a smartphone to monitor air quality. As this project was
with a niche smartphone supplier we do not expect an immediate market trend to follow from this application.
Successful Expansion of Product Portfolio through CO2 and PM2.5 Sensors
As planned, in 2018, with the carbon dioxide sensor (CO2 sensor) and particulate matter sensor (PM2.5 sensor), two
new product lines were launched successfully and the first products introduced onto the market. Both new sensors
generated a positive market reaction, the CO2 sensor primarily in the industrial market and the PM2.5 sensor in the
automotive sector, and the first revenues were achieved. Because of the inherent characteristics of the OEM busi-
ness we expect steady revenue growth from these products in the upcoming years.
Decisive Progress in Sensirion Automotive Solutions
In September 2017, Sensirion acquired the sensor module business of AIC with the goals of strengthening Sensiri-
on’s market position as a supplier of automotive sensors solutions and establishing manufacturing capabilities in
China and South Korea. With three manufacturing sites now in Switzerland, China, and South Korea, we have
increased our flexibility to manufacture module products cost-efficiently and optimized for quality while being close
to our customers. The integration of the new business division, Sensirion Automotive Solutions, is proceeding
according to plan. Apart from the cultural integration of the new employees, a special focus was placed on the syn-
chronization of the production and development processes and the quality systems between China, South Korea, and
Switzerland. Both newly acquired sites in China and South Korea were successfully certified according to the newly
revised automotive norm IATF 16949. After moving into a new production facility in Shanghai, manufacturing of the
new product lines CO2 and PM2.5 has successfully begun in China.
Initial Public Offering
Sensirion was successfully listed on the SIX Swiss Exchange on 22 March 2018. With the IPO, Sensirion aimed at
expanding its shareholder base, including long-term committed anchor shareholders, with the goal to secure a
sustainable development of the business based on an entrepreneurial spirit and targeted, long-term investments.
The Founders and Co-Chairmen, Moritz Lechner and Felix Mayer, remain fully invested and committed and continue
to drive the future development of Sensirion.
8
Letter to the Shareholders
Sensirion Annual Report 2018 At the IPO, predominantly existing shares held by the majority shareholder, Gottlieb Knoch, were placed. In addition,
Sensirion placed newly issued shares in order to increase the financial flexibility for its business development. The
offered shares were several times oversubscribed due to strong demand from Swiss and international institutional
shareholders as well as domestic private investors.
Ricarda Demarmels as New Board Member
Gottlieb Knoch resigned from the Board of Directors with effect as of the day prior to the IPO. Just a few months after
its foundation, Mr. Knoch joined Sensirion as a business angel and has actively supported and loyally accompanied
the development of the company for almost two decades with his extensive entrepreneurial experience. We would
like to take this opportunity to sincerely thank Mr. Knoch for his many years of very valuable support, both as a major
shareholder and as a member of the Board of Directors.
We are delighted to welcome Ricarda Demarmels as a new member of our Board of Directors. As former CFO of Orior
AG and future CFO of the Emmi group, Ms. Demarmels brings a wealth of experience in the area of finance and
controlling of listed companies.
Outlook for 2019
The global economic situation changed significantly in the second half of 2018. For the first half-year 2019, we
expect weaker market demand as well as reduced visibility as a result of increasing economic and political uncer-
tainties and further inventory corrections at customers. In line with customers’ outlooks, a positive trend for the
second half of this year is likely, provided geopolitical tensions do not intensify. In view of this market scenario and
stable exchange rates, we expect full-year revenue to be in the range of CHF 175-190 million, a stable gross margin
between 52 % and 54 %, and an adjusted EBITDA margin in the range of 15-17 %. Apart from these short-term
uncertainties, Sensirion’s long-term fundamentals remain strong and all innovation projects are progressing accord-
ing to plan.
Many Thanks to Our Employees
On behalf of the Board of Directors and the Executive Committee, we would like to thank all our employees for their
outstanding commitment. We are particularly pleased that many of our employees also support the company as
shareholders. It is a matter of great importance to the Board of Directors as well as to the Executive Committee to
continue cultivating and developing the extraordinary corporate culture – our so-called “SensiSpirit” – as the basis
of our success. We are also proud to have hit our 20th anniversary, which we celebrated in the year under review.
Moritz Lechner
Co-Chairman of the Board
Felix Mayer
Co-Chairman of the Board
Marc von Waldkirch
CEO
Letter to the Shareholders
9
Sensirion Annual Report 2018 Strategy
Deepening existing customer relationships and establishing new ones
We intend to continue cultivating and strengthening long-term trusting customer relationships, as well as broadening
our customer base and increasing our distribution network with leading distributors in order to expand our reach into
the fragmented market for environmental and flow sensors with a view to becoming our customers' preferred sup-
plier. In terms of new customers, our focus is on manufacturers that are leaders in their markets, either in terms of
market share or innovation. To achieve this goal, we offer focused account management and support our customers
in the realization of their applications. By establishing close and trusting relationships with our key customers, we
improve our chances of achieving design wins which, in turn, allows us to supply our sensor products for the duration
of our customers' typically long product lifecycles and enables us to participate in subsequent generations of our
customers’ applications.
Expanding our sensor product and application offering
We intend to continue expanding our offering of innovative sensor products and applications, in particular by making
significant investments in R&D in order to unlock new and lucrative high-growth applications. In particular, we strate-
gically focus on the development of core technology platforms that we can leverage across multiple end markets and
applications to maximize the impact of our R&D investments, increase economies of scale, as well as extract maximum
customer value and grow our revenue potential. Moreover, as a result of declining component costs and production
efficiencies, we can respond to customer pricing pressure and average unit price erosion with lower-priced, techno-
logically more advanced, higher-performing products while maintaining our gross margin.
Creating new growth opportunities
We aim to continue investing in fundamental technology innovation with a view towards driving long-term market
leadership by systematically exploring and evaluating new sensor technologies, applications, and market opportunities
that complement our product and application offering and allow us to capture high-value growth opportunities. Spe-
cifically, we have positioned ourselves to best capture the opportunities provided by the potential emergence of a
market for environmental sensors in mobile devices. In order to find new growth opportunities, we closely monitor the
overall sensor market with a view to identifying market trends and evolving customer demands. Additionally, we make
use of our proximity to the global and local start-up community to seek out innovative new sensor technologies and
opportunistically pursue selective acquisitions of technologies, product lines, businesses, or manufacturing capacities
that we believe will complement and strengthen our competitive position.
Building operational excellence to maintain resilient gross margins and enhance overall operating profits
We intend to drive growth by continuously enhancing supply chain management and manufacturing efficiencies, in
particular in relation to supply chain costs, yield engineering, and maximizing the utilization of existing capacity. Our
“fab-light” approach to manufacturing, under which we outsource any form of standardized and readily available man-
ufacturing services to third-party contract manufacturers, contributes to cost-efficient manufacturing and affords us a
high level of operating flexibility to be able to quickly and efficiently respond to market trends, including customer
demands.
Recruiting and retaining superior talent
In order to remain innovative and agile, we aim to continue recruiting and attracting top talent. We intend to continue
fostering our award-winning, entrepreneurial company culture which we believe facilitates hiring, strengthens
employee retention, and contributes to creating the ideal environment for innovation.
10
Strategy
Sensirion Annual Report 2018 Gas Meter Modules
Our proven microthermal technology has
a track record of billions of hours of reliable
field operation in gas meters.
11
Sensirion Annual Report 2018Kapiteltitel 12
Sensirion Annual Report 2018 Annual Report
13
Sensirion Annual Report 2018 Humidity and Temperature Sensors
Approximately one in three cars
manufactured today includes a Sensirion sensor.
14
KapiteltitelSensirion Annual Report 2018 Automotive Market
In the automotive market, revenue increased by CHF 12.9 million to CHF 53.9 million, contributing 31 % to group revenue.
Of this increase, 8 % was organic and 23 % inorganic.
Organic growth was driven by increased volumes of humidity and gas flow sensors. Humidity sensors are mainly
employed in auto-defogging and climate control applications, while gas flow sensors are employed in the air intake of
combustion engines. In either case, the goal is to optimize energy consumption or increase passenger comfort. These
applications originated in upper-class models and have now reached middle-class models through a “trickle-down
effect” based on increased cost-effectiveness of new product generations. In 2017, many OEMs and Tier I suppliers
switched from the first generation of humidity sensors to the second or third ones. The corresponding projects went
through a volume ramp-up in 2018, which yielded revenue growth as price reductions were overcompensated. Reve-
nues also increased as a result of higher sales volumes of our second generation of gas flow sensor components.
Inorganic growth stemmed from the acquisition of the sensor business of Auto Industrial Company (AIC), which was
completed in September 2017. The revenues came from auto-defogging, ambient temperature, and ionizer modules for
the South Korean and Chinese markets. The integration of the Seoul and Shanghai sites proceeded as planned in 2018,
with the main focus being on the synchronization of production and quality systems between these sites and Switzer-
land, as well as on the cultural integration of the new employees. Projects relating to the acquired ionizer, ambient
temperature, and anti-fogging products achieved their expected volumes. As planned, in 2018 we began to work on
successor products in order to achieve broader market penetration. The acquisition significantly strengthens our posi-
tion as a direct supplier to automotive OEMs. However, because of the long duration of automotive projects, newly
generated revenues could not yet be realized.
In order to be successful in the automotive market, customer proximity and product reliability are crucial. To that end,
our automotive products are qualified according to the stringent requirements of the Automotive Electronics Council
AEC-Q100, and our manufacturing sites are certified according to the international standard IATF 16949.
Applications of our sensors in the automotive industry are primarily motivated by the trend to increase energy effi-
ciency, as well as improving comfort and quality of life. We expect the shift to hybrid and electric vehicles to benefit
us. Whereas saving fuel through optimized control of the air conditioning unit is valuable for a combustion-engine car,
it is crucial in the case of an electric vehicle because saved energy directly translates into increased range. This
should lead to increased demand for sensors in climate control and auto-defogging applications. On the other hand,
even though electric vehicles will not require mass air flow sensors for the air intake of the engine, corresponding gas
flow sensor projects are still growing, and we believe that combustion engines will continue to be applied for a long
time to come.
REVENUE DEVELOPMENT
2017
2018
in CHF million
41.0
53.9
+ 31 %
Markets
15
Sensirion Annual Report 2018 Medical Market
In the medical market, generated revenue amounted to CHF 38.6 million, which corresponds to a growth of 15 %
compared to the previous year and a contribution of 22 % to overall group revenue.
Our sensor solutions are mainly integrated in continuous positive airway pressure (CPAP) home care devices to treat
sleep apnea, as well as in hospital devices such as ventilators and devices used in anesthesiology. CPAP therapeu-
tic devices and ventilators employ gas flow and partial humidity sensors to control and maintain the correct air flow
into the patient. In anesthesia devices, mass flow meters play a mission-critical role to correctly dose the applied
amount of anesthetic agent. Revenue growth resulted mainly from increased sales volumes for CPAP devices, ven-
tilators, and partially anesthesia devices. We supply to the most important CPAP device manufacturers worldwide,
which results in us enjoying a very high market share.
Overall, we see a trend of increased real-time monitoring of gases and liquids which enter or exit the patient, for
instance in respiratory applications. We believe that our highly capable sensor solutions are well suited to meet
these demands in the future.
REVENUE DEVELOPMENT
2017
2018
in CHF million
33.4
38.6
+ 15 %
16
Markets
Sensirion Annual Report 2018 Mass Flow Meters
Millions of patients rely on our flow sensor solutions
that support life-sustaining functions.
17
Sensirion Annual Report 2018Kapiteltitel Differential Pressure Sensors
Our sensors reduce energy consumption
in countless family homes, industrial facilities,
and entire building complexes.
18
KapiteltitelSensirion Annual Report 2018 Industrial Market
In the industrial market, revenue increased by CHF 8.3 million to CHF 68.6 million, which corresponds to a 14 %
increase compared to the previous year and 39 % of total revenue. Growth was mainly driven by increased demand
through our distribution sales channels and market share gains of one of our main gas meter customers.
Sales through distribution channels showed strong growth, primarily in Asia Pacific and the Americas, and to a
lesser degree in the EMEA region. A big portion of the increased revenue stemmed from larger shipments of humid-
ity sensors and gas flow components. Sales through our distribution network of the new products to measure air
quality, carbon dioxide, and particulate matter contributed their first revenues as well.
In the appliances market, which includes applications such as employing humidity sensors in refrigerators or air
conditioners to optimize energy, a major manufacturer of air purifiers started to integrate our air quality sensor in
their products in addition to the humidity sensor. This allows the air purifier to more efficiently purify the air when
needed and indicate the status of the air quality to the end user. This is an example of how we can leverage our
existing customer relationships based on the humidity sensor to introduce our new environmental sensors (air
quality, CO2, PM2.5) through cross-selling.
In the area of heating, ventilation, and air-conditioning, revenue growth mainly resulted from ramping up customer
projects that rely on differential pressure sensors to optimize ventilation through the variable-air volume approach.
Improved ventilation and temperature control lead to increased energy efficiency and comfort. Humidity sensors also
experienced stronger demand for building automation applications.
In the hard disk market, sales of humidity sensors generated higher than expected revenue. However, as the
data-storing industry is shifting towards flash-based storage technology, we expect declining demand in this area in
the future.
The switch to smart gas meters offers an opportunity for Sensirion to introduce our gas meter solution. Smart gas
meters, which are used by energy utilities in commercial and residential settings to bill the building owner or end
user, include a communication module and thus a battery. With the battery present, other technologies than the
traditional purely mechanical one become feasible. Our microthermal gas metering technology was incorporated by
a major customer in Italy, who is gaining market share from year to year.
REVENUE DEVELOPMENT
2017
2018
in CHF million
60.3
68.6
+ 14 %
Markets
19
Sensirion Annual Report 2018 Consumer Market
Revenue in the consumer market increased from CHF 13.3 million in 2017 to CHF 13.7 million (3 % growth year-
over-year), amounting to 8 % of group revenue. Revenue growth was driven by increased sales of humidity and air
quality sensors through our distribution network, primarily in China and the United States.
Applications of our sensor solutions in the consumer market are focused around improving energy efficiency and
enhancing air quality and comfort through smart home or internet-of-things devices, which are driven by increased
connectivity to the internet and other devices. Examples include baby cameras and smart thermostats.
Innovation in the smart home market is primarily driven by start-ups as well as small and medium-sized enterprises.
This renders sales through the distribution network especially important in the consumer market, because distribu-
tion channels can optimally address these types of customers.
A special characteristic of the consumer market is its ecosystem. Both for non-smartphone and smartphone appli-
cations, the large chipset manufacturers play a significant role since they design and distribute chipset reference
boards, which often include environmental sensors. These reference designs set trends and define de facto stan-
dards. In 2018 we made good progress in supplying sensors to as many reference board manufacturers as possible
through our Palo Alto office, by setting up and leveraging important relationships in order to eventually enable
applications of our sensor solutions in consumer devices.
In terms of smartphones, we were able to supply our air quality sensor to a niche smartphone manufacturer whose
handset is targeted at construction workers to provide early warning of the presence of harmful gases. Even though
we assume that this smartphone will not set an overall trend of incorporating air quality sensors in mobile phones,
we were able to demonstrate the feasibility of measuring air quality in a commercially available smartphone.
REVENUE DEVELOPMENT
2017
2018
13.3
13.7
in CHF million
+ 3 %
20
Markets
Sensirion Annual Report 2018 Multi-Pixel Gas Sensors
Millions of our gas sensors help to monitor
and improve indoor air quality.
21
Sensirion Annual Report 2018Kapiteltitel Sensirion Worldwide
Our Branches and Sales Offices
NORTH AMERICA
Sales
22
Worldwide
Sensirion Annual Report 2018 SWITZERLAND
Headquarters, R&D,
Production, and Sales
HEADQUARTERS
STÄFA
SOUTH KOREA
R&D, Production, and Sales
JAPAN
Sales
TAIWAN
Sales
CHINA
R&D, Production, and Sales
Our headquarters are located in Stäfa, Switzerland, where the majority of our research
and development, marketing and sales, administrative functions, as well as a large part of our
production facilities are based.
Furthermore, we have production facilities and research and development activities in
China and South Korea, as well as sales and customer support offices in China, Japan, South
Korea, Taiwan, and the US.
Worldwide
23
Sensirion Annual Report 2018 Environmental Sensors
Our environmental sensor products provide detailed and reliable data on key environmental parameters. We offer
sensor solutions for the measurement of humidity, temperature, volatile organic compounds, particulate matter, and
carbon dioxide.
Temperature and combined humidity & temperature sensors
We offer a range of temperature sensors as well as combined humidity and temperature sensors. The combined
humidity and temperature sensors form a single unit linking the sensor elements with analog and digital signal pro-
cessing circuitry on a miniscule surface area. The combination of all elements onto one microchip enables an accurate
and point-precise determination of the dew point without incurring errors due to temperature gradients between the
humidity and the temperature sensors. Depending on the requirements for the relevant customer application, our
customers can choose between temperature as well as combined humidity and temperature sensors with varying
specifications, such as level of accuracy, power supply range, package size, and cost. Both our temperature and
combined humidity and temperature sensors can be exposed to condensation or even completely immersed in liquid
without damaging their functional capabilities.
Multi-pixel metal oxide gas sensors
Based on Sensirion’s innovative MOXSens® Technology, the SGP multi-pixel gas sensor platform offers a unique
combination of long-term stability and multi-pixel technology that opens up new possibilities for environmental moni-
toring. The sensor is designed to withstand siloxanes, which are ubiquitous due to their widespread use across many
industries, for example in cosmetic products, food, soaps, or as additives to plastics. Siloxanes cause irreversible
damage to the metal-oxide sensing elements, leading to a loss of sensitivity and measurement instability. Our multi-
pixel metal oxide gas sensors are capable of measuring the total volatile organic compounds (VOC) present in the air
by integrating four gas sensing elements onto one microchip featuring a fully calibrated air quality output signal. VOCs
include a wide range of chemical compounds that originate from a number of different sources, such as building
materials, solvents, cleaning agents, furniture paints, or human occupants, and can have detrimental health effects
after prolonged exposure, in particular when they occur in insulated buildings that prevent air exchange.
Particulate matter sensors (PM2.5 sensors)
Sensirion’s SPS30 particulate matter (PM) sensor is the next technological breakthrough in optical PM sensors. Its
measurement principle is based on laser scattering and makes use of Sensirion’s innovative contamination-resistance
technology. This technology, together with high-quality and long-lasting components, enables accurate measure-
ments from its first operation and throughout its lifetime. In addition, Sensirion’s advanced algorithms provide superior
accuracy for different PM types and higher-resolution particle size binning, opening up new possibilities for the detec-
tion of different types of environmental dust and other particles.
Carbon dioxide sensors (CO2 sensors)
The SCD30 makes use of Sensirion’s CMOSens® Technology for infrared detection, which enables highly accurate CO2
measurements at a competitive price. Along with the non-dispersive infrared measurement technology for CO2 detec-
tion, a best-in-class Sensirion humidity and temperature sensor is integrated into the same sensor module. Ambient
humidity and temperature is output by Sensirion’s algorithm expertise through modeling and compensation of external
heat sources without requiring any additional components. Thanks to the dual-channel principle for the measurement
of CO2 concentration, the sensor compensates for long-term drifts automatically by design.
24
Products
Sensirion Annual Report 2018
Flow Sensors
Our flow sensor solutions provide a reliable and cost-efficient method to measure gas and liquid flows. We offer
mass flow meters as well as mass flow controllers for gases, gas meter modules, differential pressure sensors, and
liquid flow meters for the automotive, medical, and industrial markets.
Gas meter modules
Gas flow is generally more difficult to measure than liquid flow because the volume measured is highly affected by
temperature and pressure. We offer innovative and durable microthermal gas meter modules which enable reliable
monitoring of gas consumption in real time for residential and industrial gas metering applications. Our gas meter
modules have very low power consumption, are noiseless, and avoid wear due to their lack of mechanical parts. Our
gas meter modules have been successfully embedded in gas meters that subsequently passed stringent tests required
for the certification of gas meters, including those related to dust resistance.
Differential pressure sensors
We offer differential pressure sensors for gases, which are fully calibrated and temperature compensated to offer the
highest accuracy when it comes to measuring standard volume flow or mass flow, especially at very low differential
pressures. In case of a pressure difference, a tiny gas flow, limited by a small restrictor, passes through the flow
channel and is measured by the sensor microchip. The pressure connectors in the differential pressure sensors can
be connected to up to two different air or gas volumes.
Liquid flow meters
Sensirion’s liquid flow meters are able to measure low liquid flow rates, liquid handling, and liquid dispensing. For
instance, a single drop of liquid contains approximately 12.5 microliters. Our liquid flow meters are sufficiently sensi-
tive to measure mass flows inside the channel in nanoliters, microliters, or milliliters per minute with the highest
accuracy. We offer battery-operated options for some of our liquid flow meters as well as disposable versions for
applications in the medical market.
Mass flow meters
Our mass flow meters for gases ensure fast, accurate, and cost-efficient measurement of the flow of air, oxygen, and
other non-aggressive gases over a wide dynamic range and are largely free from zero-point drift. Mass flow meters
vary in flow range, working pressure, and interface (digital or analog) and are designed for a variety of applications.
The mass flow is determined using the thermal measurement principle. Some of our mass flow meters are available
as autoclavable and disposable versions for expiratory and proximal applications in the medical market.
Mass flow controllers
We offer mass flow controllers for gases, which are able to measure and control the flow of gases. The gas flow
is measured based on the thermal measurement principle, while an efficient analog controlling circuit controls the
gas flow.
Products
25
Sensirion Annual Report 2018 Innovation
With our SPS30 particulate matter (PM) sensor, Sensirion has introduced several key innovations to the market. A
traditional PM sensor is very susceptible to output drift due to the accumulation of dust on the crucial optical parts
of the device, namely the laser, the photodiode, and the beam dump (used to absorb the laser light and avoid para-
sitic scattering). Based on twenty years of experience in flow sensor design for several demanding markets and
applications (e.g. automotive, medical, industrial, and smart energy), we have developed and integrated into the
SPS30 an innovative and proprietary flow path technology that prevents dust and dirt accumulating on the optical
components.
Thanks to this contamination-resistance technology, the sensor offers a unique long-term stability, thus enabling
accurate measurements throughout its lifetime of more than eight years. Furthermore, most low-cost PM sensors on
the market assume a constant mass density in calibration and calculate the mass concentration by multiplying the
detected particle count by this mass density. This assumption only works if the sensor measures a single particle
type (for instance, tobacco smoke), but in reality there are many different particle types with many different optical
properties in everyday life, from “heavy” house dust to “light” combustion particles.
Sensirion’s proprietary algorithms use an advanced approach that allows a proper estimation of the mass concen-
tration, regardless of the particle type measured. In addition, such an approach enables a correct estimation of the
size bins. The increased accuracy for different aerosols and particle size binning allows users to develop new use
cases based on particle composition recognition.
26
Innovation
Sensirion Annual Report 2018 Sustainability
Since its foundation in 1998, Sensirion has strived to make an active contribution to improving health, safety, and
energy efficiency. The development of new and innovative products is at the core of our business and it goes without
saying that sustainability means far more to us than simply complying with legislation.
Environment, health and safety
We aim to use resources sustainably and sparingly when developing and producing our products, and we do every-
thing possible to avoid making a negative impact on nature and the environment. Our production facility in Switzer-
land is certified under the environmental standard ISO 14001. Furthermore, hazardous substances in our products
are reduced to a minimum.
As a company, we actively drive improvements. Sensirion AG is a member of the Responsible Business Alliance
(RBA, formerly EICC) and is thus committed to continual improvements in labor law, occupational safety, environ-
mental protection, and ethics. Sensirion AG regularly audits its suppliers to ensure that they also comply with the
RBA code.
Occupational safety and health protection are vital for employee motivation and product quality. Sensirion takes all
necessary technical, organizational, and individual measures to minimize risks at our workplaces as far as possible.
All our employees are trained in occupational safety and emergency procedures.
Our employees
Our employees are a key part of our success story. Therefore, we constantly strive to offer them the best possible
conditions for personal and professional development. Their knowledge, experience, motivation, and willingness
to change are unique and reflected in our corporate culture. Only by working together can we make a difference.
This is reflected in our corporate culture by flat hierarchies, quick decision-making processes, and numerous
employee-organized social events.
We maintain the highest standards of business integrity. Corruption, whether active or passive, is not tolerated. We
respect our employees’ contribution to our innovative products and insist that our intellectual property is respected.
To this end, we encourage employees to report faults and abuses. We also meet the stipulations of the Conflict
Mineral Act.
Sustainability
27
Sensirion Annual Report 2018 Employees and Culture
Sensirion’s success is based on our unique culture and people. Attracting the best talent at all times is one of the
prerequisites for being innovative. Of our employees, one in two holds a university degree and around one in five of
the entire workforce has a doctorate degree. When selecting applicants, we focus not only on expertise but especially
on the person too. We are looking for team-oriented and cosmopolitan talents who identify with our values of “top
performance”, “fair and honest”, and “work together”, and display these qualities on a daily basis.
For personal and professional training, Sensirion offers various training and further education programs. In addition to
expert knowledge, these programs promote a pioneering spirit, initiative, and a willingness to assume responsibility.
Sensirion also promotes the dual educational system, which combines apprenticeships with vocational education.
We are proud of our employees and our values. To give this unique corporate culture a face, we want our
employees to speak for themselves.
“I find it exciting that every day at Sensirion I learn what today’s techno-
logy is capable of and what it will bring in the future. I also appreciate
my clean and air-conditioned workplace. The friendly interaction between
colleagues and superiors always motivates me to do my best.”
Thuy Tran, Operator
Sensirion AG, Switzerland
“In the ‘Sensor Innovation’ department, we evaluate market opportunities
and new sensor technologies that could ideally complement our product
portfolio. In this exciting job, I really appreciate working with highly motivated
colleagues across departments. The will to achieve common goals that
go beyond our own horizons reflects our corporate culture. You can feel that
everyone is highly motivated to get fully involved, both in projects and on
social occasions.”
Felix Hoehne, Director Sensor Innovation
Sensirion AG, Switzerland
“I perceive our corporate culture everywhere at Sensirion. Thanks to our
unique culture, I have a good mood and high energy during my work.
The motto ‘fair and honest’ enables simple and efficient communication
worldwide. In general, our corporate culture motivates me to deliver
the best possible performance.”
Fang Fen, Sales Manager
Sensirion China Co. Ltd., China
28
Employees and Culture
Sensirion Annual Report 2018 “Our corporate culture means that we work passionately and act as a
team without national or hierarchical limitations. The spirit is always tangible
and enables open and constructive discussions. This allows us to promote
our products and services with confidence, which motivates us to develop
new business relationships.”
Seto Naoyuki, General Manager
Sensirion Japan Co. Ltd., Japan
“The distinctive spirit of innovation and the high-tech environment at
Sensirion motivate me every day in my work. Thanks to the flat hierarchies
and the helpful as well as competent colleagues, new ideas can develop into
pre-experiments, which are quickly evaluated. I appreciate this joint
solution-finding in the sense of ‘work together’, because so much can be
moved and achieved.”
Pernilla Andersson, R&D Environmental Sensors
Sensirion AG, Switzerland
“I really appreciate that I have the chance to help and support people by
creating new processes and implementing new systems and company
standards. Our company values of ‘fair and honest’, ‘work together’ and ‘top
performance’ are not only important for my daily business, but have
become part of my life. Whenever I have a different opinion than others,
I can openly express my point of view at Sensirion and people are
always willing to hear me out.”
Inyoung Jun, Finance & HR Manager
Sensirion Automotive Solutions Co. Ltd., South Korea
“At Sensirion you don’t just work, you achieve something together. I feel
our corporate culture (internally known as 'SensiSpirit') most when classic
hierarchies merge and individuals search for professional solutions
at a meeting or have fun together in a relaxed atmosphere at a social event.
I know that some other companies also have a great corporate culture,
but the fact that our corporate culture is given its own name and is actually
lived demonstrates its importance impressively.”
Emanuel Frey, Purchasing Manager
Sensirion AG, Switzerland
Employees and Culture
29
Sensirion Annual Report 2018 Corporate Governance
This report on corporate governance describes Sensirion’s principles of management and control at the highest
corporate level of Sensirion in accordance with the Directive on Information relating to Corporate Governance of SIX
Exchange Regulation (DCG). Unless stated otherwise, the information in this report is provided as of 31 December 2018.
Sensirion’s corporate governance largely follows the guidelines and recommendations set out in the Swiss Code of
Best Practice for Corporate Governance issued by economiesuisse in July 2002, as amended in 2007, 2014, and
2016 (the “Swiss Code”). Sensirion has made some adjustments and simplifications to suit its management and
shareholder structure.
Sensirion’s principles and rules of corporate governance are set forth in its Articles of Association, its Organizational
Regulations (including committee charters), and its Regulations on the Registration of Shareholders in the Share
Register and the Maintenance of the Share Register (“Share Register Regulations”), which are all available on our
website (https://www.sensirion.com/articles-of-association-internal-regulations). The Nomination and Compensation
Committee of the Board of Directors of Sensirion Holding AG regularly reviews Sensirion’s corporate governance
framework and ensures compliance with corporate governance requirements.
Group Structure and Shareholders
Group structure
Sensirion Holding AG (or the “Company”) is a stock corporation organized under the laws of Switzerland which was
incorporated on 7 October 1998 and is registered in the commercial register of the Canton of Zurich under the regis-
ter number CHE-104.836.469 (LEI: 894500ANJ9YNE8YCTT04). Its registered address is at Laubisrütistrasse 50,
8172 Stäfa, Switzerland. The shares of Sensirion Holding AG have been listed on the SIX Swiss Exchange since the
Company’s initial public offering (“IPO”) on 22 March 2018 (ISIN CH0406705126, Swiss Security Number 40670512).
The Sensirion Group (“Sensirion” or the “Group”) consists of Sensirion Holding AG and its consolidated subsidiaries,
which are listed in the Consolidated Financial Statements on page 77.
Sensirion operates as a single operating and reporting segment that encompasses the development, production, sale,
and servicing of sensor systems, modules, and components. This structure is described in more detail in the segment
information in the Consolidated Financial Statements on pages 87 and 88.
Significant shareholders
As of 31 December 2018, the following shareholders or group of shareholders have reported to Sensirion Holding AG
holding 3 % or more of the voting rights in Sensirion Holding AG:
30
Corporate Governance
Sensirion Annual Report 2018 Direct holder
% of voting rights
Moritz Lechner, Uerikon, Switzerland; Felix Mayer, Stäfa, Switzerland; Fondation des Fondateurs,
Zurich, Switzerland; 7-Industries Holding B.V., Amsterdam, Netherlands; EGS Beteiligungen AG,
Zurich, Switzerland; Sensirion Holding AG , Stäfa, Switzerland1
Gottlieb Knoch, Zug, Switzerland
T. Rowe Price Associates, Inc., Baltimore, United States
Davent Holding AG, Zug, Switzerland 2
34.7 %
5.1 %
3.8 %
3.7 %
1 The beneficial owner of 7-Industries Holding B.V. is Mrs. Ruthi Wertheimer, Herzliya, Israel. The beneficial owner of EGS Beteiligungen
AG, Zurich, Switzerland, is the Ernst Göhner Stiftung, Zug, Switzerland. The shareholders act in concert within the meaning of
article 121 FMIA by virtue of a shareholders’ agreement, as a result of which they, together with the Company, act in concert. Moritz
Lechner, Felix Mayer, Fondation des Fondatuers, 7-Industries Holding B.V., and EGS Beteiligungen AG together hold 33.2 % of the
voting rights. Percentages are based on the shareholdings known by the Company as of 31 December 2018 (which deviate from the
notification made on 18 December 2018).
2 The beneficial owner of Davent Holding AG is Dr. Thomas Knecht, Zug, Switzerland.
Dr. Moritz Lechner, Dr. Felix Mayer (together the “Founders”), Fondation des Fondateurs, 7-Industries Holding B.V.,
and EGS Beteiligungen AG (together the “Anchor Shareholders”) have entered into a shareholders’ agreement to
govern their rights and obligations as shareholders and/or members of the Board of Directors of Sensirion Holding AG.
According to the shareholders’ agreement, the Anchor Shareholders can propose a majority of the candidates nomi-
nated for election to the Board of Directors and one of these candidates as Chairman (or two as Co-Chairmen) of the
Board of Directors. In addition, each Founder has the right to be (re-)elected by the Anchor Shareholders as member
and as Co-Chairman of the Board of Directors. Further, the Anchor Shareholders have also entered into voting under-
takings with regard to shareholder resolutions requiring a qualified majority. With respect to the disposal of shares,
the Anchor Shareholders have granted each other (and, failing them, Sensirion Holding AG) a right of first refusal and
a right of first offer. Finally, the Anchor Shareholders have undertaken that they will only sell all their shares (as long
as they hold more than 25 % but less than 331⁄3 % of the Company’s voting rights), or shares corresponding to
331⁄3 % or more of the Company's voting rights to a third party if such third party agrees to launch a public tender offer
for all publicly held shares of Sensirion Holding AG for a consideration not lower than the consideration promised to
the selling Anchor Shareholders.
In addition, all members of the Board of Directors and of the Executive Committee as well as Fondation des Fonda-
teurs agreed vis-à-vis the managers in connection with the IPO to be bound by a lock-up undertaking until 22 March
2019 for their Sensirion shares and other purchase positions representing in the aggregate 13.0 % of the voting
rights. Further, 598 employees of the Group (including the members of the Executive Committee) have agreed with
Sensirion Holding AG on a lock-up undertaking until 22 March 2019 for their Sensirion shares and other purchase
positions representing in the aggregate 10.8 % of the voting rights.
The announcements related to the disclosure notifications made by shareholders during 2018 can be found via the
search facility on the platform of the Disclosure Office of the SIX Swiss Exchange: https://www.six-exchange-regula-
tion.com/en/home/publications/significant-shareholders.html. For purposes of this section, percentages are based
on the issued share capital of Sensirion Holding AG recorded in the commercial register as of 31 December 2018.
Cross shareholdings
The Group has no cross-shareholdings that exceed 5 % of the holdings of capital or voting rights on both sides.
Corporate Governance
31
Sensirion Annual Report 2018 Capital Structure
Capital
As of 31 December 2018, the share capital of Sensirion Holding AG amounts to CHF 1,514,017.20, divided into
15,140,172 fully paid-in registered shares with a par value of CHF 0.10 each. In addition, Sensirion Holding AG has
authorized share capital in the amount of CHF 145,581.70 (corresponding to 9.6 % of the share capital). The remain-
ing authorized share capital in the amount of CHF 10,736.30 to underlie the overallotment option in connection with
the IPO expired on 15 December 2018. Further, Sensirion Holding AG has conditional share capital for employee
participations in the amount of CHF 145,581.70 (corresponding to 9.6 % of the share capital); conditional share
capital for financing, acquisitions, and other purposes in the amount of CHF 145,581.70 (corresponding to 9.6 % of
the share capital); and conditional share capital for employee participations in connection with the IPO in the amount
of CHF 56,061.70 (corresponding to 3.7 % of the share capital). The following table summarizes the capital structure
of Sensirion Holding AG.
Share capital
As per 31 December 2018
Share capital
Authorized share capital1
Conditional share capital
Reserved for employee participation plans
Reserved for financing, acquisitions, and other purposes
Reserved for employee participation plans in connection
with the IPO
1 Expiring on 8 March 2020
% of capital
Shares
In CHF
100.0 %
9.6 %
9.6 %
9.6 %
3.7 %
15,140,172
1,514,017.20
1,455,817
145,581.70
1,455,817
145,581.70
1,455,817
145,581.70
560,617
56,061.70
Authorized capital
The annual general meeting of shareholders of Sensirion Holding AG (the “Annual General Meeting”) resolved on
8 March 2018, among other things, to create authorized share capital and authorized the Board of Directors to increase
the share capital any time until 8 March 2020 by a maximum amount of CHF 145,581.70 by issuing a maximum of
1,455,817 fully paid-in registered shares with a par value of CHF 0.10 each (see Article 3a of the Articles of Associa-
tion). Increases in partial amounts are allowed. The subscription and acquisition of the new shares as well as any sub-
sequent transfer of the shares is subject to the restrictions set out in the Articles of Association (see “Limitations on
Transferability and Nominee Registrations” on pages 34 and 35). The Board of Directors determines the issue price, the
type of contribution, the date of issue, the conditions for the exercise of pre-emptive rights, and the beginning date for
dividend entitlement. It may issue new shares by means of a firm underwriting with a subsequent offer to the existing
shareholders or, if pre-emptive rights have been excluded or not duly exercised, to third parties. The Board of Directors
may permit, restrict, or exclude the trade with pre-emptive rights. It may permit the expiration of unexercised pre-emp-
tive rights, or it may place such rights or the respective shares at market conditions or may use them otherwise in the
interest of Sensirion Holding AG. Further, the Board of Directors is authorized to restrict or exclude pre-emptive rights
of existing shareholders and allocate such rights to third parties or the Group for the acquisition of companies, part(s) of
companies or participations, for the acquisition of products, intellectual property or licenses by or for investment projects
of the Group, or for the financing or refinancing of any of such transactions through a placement of shares.
32
Corporate Governance
Sensirion Annual Report 2018 Conditional capital
In addition, the Annual General Meeting resolved on 8 March 2018 to create three categories of conditional capital.
First, the share capital of Sensirion Holding AG may be increased by an amount not to exceed CHF 145,581.70 by
issuing up to 1,455,817 fully paid-in registered shares with a par value of CHF 0.10 per share through the direct or
indirect issuance of shares, options, or related subscription rights to members of the Board of Directors, members
of the Executive Committee, or employees of the Group (see Article 3b of the Articles of Association). The pre-emptive
rights and advance subscription rights of existing shareholders are excluded. Shares, options, or related subscription
rights are issued pursuant to regulations to be issued by the Board of Directors and taking into account the compen-
sation principles pursuant to the Articles of Association. Shares or subscription rights may be issued to employees
at a price lower than the respective market price quoted on the stock exchange.
Second, the share capital may be increased by an amount not to exceed CHF 145,581.70 by issuing up to 1,455,817
fully paid-in registered shares with a par value of CHF 0.10 per share through the exercise or mandatory exercise of
conversion, exchange, option, warrant, or similar rights for the subscription of shares granted to shareholders or
third parties alone or in connection with bonds, notes, options, warrants, or other securities or contractual obligations
of Sensirion Holding AG or a Group company. The pre-emptive rights of existing shareholders are excluded upon the
exercise of any such financial instruments in connection with the issuance of shares. The then-current owners of
such financial instruments are entitled to acquire the new shares issued upon exercise. The Board of Directors is
authorized to restrict or withdraw advance subscription rights of existing shareholders in connection with the issu-
ance of financial instruments if the issuance is for purposes of financing or refinancing the acquisition of companies,
parts of a company, participations, or investments. If the advance subscription rights are not granted, then the
financial instruments must be issued at market conditions, the exercise price must be set with reference to the
prevailing market conditions, and the maximum exercise period is 10 years.
Third, the share capital may be increased by an amount not to exceed CHF 56,061.70 by issuing up to 560,617 fully
paid-in registered shares with a par value of CHF 0.10 per share through the direct or indirect issuance of shares,
options, or related subscription rights to members of the Board of Directors, members of the Executive Committee,
or employees of the Group pursuant to the IPO Loyalty Share Program of Sensirion Holding AG. The pre-emptive
rights and advance subscription rights of existing shareholders are excluded. Shares or subscription rights may be
issued to employees at par value.
The subscription and acquisition of the new shares under any conditional capital as well as any subsequent transfer
of the shares is subject to the restrictions set out in the Articles of Association (see “Limitations on Transferability and
Nominee Registrations” on pages 34 and 35).
Changes in capital
On 31 December 2017, the share capital of Sensirion Holding AG amounted to CHF 1,149,250, divided into 5,595
registered shares with a par value of CHF 100 each and 58,975 registered shares with a par value of CHF 10 each
(shares with preferential voting rights; Stimmrechtsaktien ). In addition, the Company had a participation capital of
CHF 96,567.20, divided into 965,672 registered participation certificates (Namenpartizipationsscheine ) with a par
value of CHF 0.10 each. In the two preceding financial years 2016 and 2015, neither the share capital nor the
participation capital of Sensirion Holding AG had been changed.
In preparation of the IPO of Sensirion Holding AG, the Annual General Meeting resolved on 8 March 2018 to
(a) increase the share capital by up to CHF 210,000 to source the new shares to be offered in the IPO, (b) split each
existing registered share with a par value of CHF 100 each into 1,000 registered shares with a par value of CHF 0.10
each and each existing registered share with a par value of CHF 10 each into 100 registered shares with a par value
Corporate Governance
33
Sensirion Annual Report 2018 of CHF 0.10 each, (c) convert its existing participation capital into share capital by converting each existing regis-
tered participation certificate with a par value of CHF 0.10 each into one registered share with a par value of
CHF 0.10 each, (d) create the authorized share capital and the conditional share capital described above and cancel
the conditional participation capital in the amount of CHF 16,237.30 for employee participation plans (existing pre-
IPO) as well as the conditional participation capital in the amount of CHF 61,573 for employee participations in case
of an initial public offering or takeover, and (e) create additional authorized share capital in the amount of
CHF 125,936.30 for an overallotment option in connection with the IPO.
As a result of these resolutions by the Annual General Meeting, the Board of Directors executed an ordinary capital
increase in the amount of CHF 153,000 on 21 March 2018 by issuing 1,530,000 shares with a par value of
CHF 0.10 each to Credit Suisse AG, Zurich, acting on behalf of the managers in the IPO, who placed the shares with
new investors in the IPO. At the same time, the split of existing registered shares and the conversion of the existing
participation certificates became effective, resulting in a share capital of Sensirion Holding AG of CHF 1,398,817.20,
divided into 13,988,172 shares with a par value of CHF 0.10 each, as of 21 March 2018.
Following the exercise of the overallotment option by the managers in the IPO, the Board of Directors resolved and
executed a capital increase from the authorized capital in the amount of CHF 115,200 on 28 March 2018 by issuing
1,152,000 shares with a par value of CHF 0.10 each to Credit Suisse AG, Zurich, acting on behalf of the managers in
the IPO. As a result of this capital increase, Sensirion Holding AG reached its current share capital of CHF 1,514,017.20
as of 31 December 2018.
Shares and participation certificates
All shares of Sensirion Holding AG are registered shares (Namenaktien ) with a par value of CHF 0.10 each and are
fully paid-in and non-assessable. All shares rank pari passu in all respects with each other, including in respect of
entitlements to dividends, to a share in the liquidation proceeds in the case of a liquidation, and to pre-emptive
rights. Following the share split in connection with the IPO as described above, Sensirion Holding AG no longer has
any issued shares with privileged voting rights. Each share carries one vote at the general meeting of shareholders
of Sensirion Holding AG, provided that shareholders and their shares are registered with voting rights in the share
register of Sensirion Holding AG. The shares have been issued as uncertificated securities (Wertrechte) within the
meaning of article 973c of the Swiss Code of Obligations (“CO”), are registered in the main register (Hauptregister )
maintained by SIX SIS Ltd. and constitute intermediated securities (Bucheffekten ) within the meaning of the Swiss
Federal Act on Intermediated Securities.
Following the conversion of the participation certificates in connection with the IPO as described above, Sensirion
Holding AG no longer has any issued participation certificates.
Profit sharing certificates
As of 31 December 2018, Sensirion Holding AG has not issued any profit sharing certificates (Genussscheine).
Limitations on transferability and Nominee registrations
Persons acquiring shares will be registered in the share register as shareholders with voting rights upon their request
if they expressly declare to have acquired these shares in their own name and for their own account. The Board of
Directors may refuse the registration of an acquirer in the share register as a shareholder with voting rights if such
acquirer would, directly or indirectly, acquire, or hold in the aggregate, more than 5 % of the shares of Sensirion
Holding AG recorded in the commercial register (the “Percentage Limit”; see Article 5 of the Articles of Association).
According to Article 5 para. 7 of the Articles of Association, a group clause applies to determine whether the Percent-
age Limit is crossed. Even if the Percentage Limit is exceeded, the Board of Directors may grant an exception and
enter a shareholder with voting rights in the share register (i) if such shareholder held or was allotted more than 5 %
34
Corporate Governance
Sensirion Annual Report 2018 of the shares recorded in the commercial register before completion of the IPO, (ii) if such incumbent shareholder (or
his legal successor, respectively) acquires additional shares after the IPO, provided that the opting-up threshold of
40 % of voting rights is not exceeded, or (iii) if a person acquires such shares recorded with voting rights from such
an incumbent shareholder off-market.
Details on the implementation of such exceptions are set out in the Share Register Regulations, in particular, the rule
that no shareholder or group of shareholders will be registered in the share register with more than 40 % of the
Company's voting rights. The decision on the granting of exceptions to the Percentage Limit lies with the Board of
Directors who may with the approval of all members of the Board of Directors in its own discretion grant further
exceptions.
In the financial year 2018, the Board of Directors granted exceptions from the Percentage Limit pursuant to
Article 5 para. 3 of the Articles of Association in connection with the IPO of Sensirion Holding AG to five shareholders
(three existing shareholders exceeding the Percentage Limit prior to the IPO and two shareholders exceeding the
Percentage Limit as a result of a preferential allocation in the IPO) as well as the Anchor Shareholders as a group,
and in connection with additional purchases of shares by two of these shareholders after the IPO.
Further, any person that does not expressly state in its application for registration that the relevant shares were
acquired for its own account (a “Nominee”) may be entered in the share register as a shareholder with voting rights
regarding up to 5 % of the share capital recorded in the commercial register, provided that the Nominee has entered
into an agreement with the Company regarding its position and is subject to a recognized bank or financial market
supervision. Beyond such registration limit, the Board of Directors may register Nominees as shareholders with
voting rights in the share register if such Nominees undertake to disclose the full name, address, citizenship, and
shareholdings of those persons for whose account the Nominee holds 0.5 % or more of the share capital recorded
in the commercial register. The group clause pursuant to Article 5 para. 7 of the Articles of Association also applies
to Nominees.
A resolution passed at a general meeting of shareholders with a qualified majority of at least two-thirds of the votes
represented and the absolute majority of the par value of shares represented at such meeting is required for the
restriction on the transferability of shares or the cancellation of such a restriction and for the amendment or cancel-
lation of Article 5 of the Articles of Association regarding the share register and restrictions on the registration of
shareholders and nominees (see Article 13 para 2. of the Articles of Association).
Convertible bonds and options
Except for Sensirion’s employee participation plans, neither Sensirion Holding AG nor any of its Group companies has
any convertible bonds or options on the equity securities of Sensirion Holding AG outstanding as of 31 December
2018. For information on Sensirion’s employee participation plans, see the Compensation Report on pages 58 to 60
and 62 to 63 as well as Note 17 of the Consolidated Financial Statements on pages 97 to 99.
Corporate Governance
35
Sensirion Annual Report 2018 Board of Directors
The duties and responsibilities of the Board of Directors of Sensirion Holding AG are defined by the Swiss Code of
Obligations, the Articles of Association, and the Organizational Regulations.
Members of the Board of Directors
The Board of Directors consists of at least three and no more than seven members (see Article 14 of the Articles of
Association). As of 31 December 2018, the Board of Directors consisted of five members. All members of the Board
of Directors are non-executive directors. With the exception of the two Co-Chairmen, none of the members of the
Board of Directors held an executive position with Sensirion during the last three financial years. Other than as set
forth below, none of the members of the Board of Directors has any significant business connections with the Group.
The following table sets forth the name, function, and committee membership of each member of the Board of
Directors as of 31 December 2018.
Name
Function
Committee membership
First elected
Elected until AGM
Dr. Moritz Lechner 1
Co-Chairman
Dr. Felix Mayer 1
Co-Chairman
Member of the Nomination and
Compensation Committee
Chairman of the Nomination and
Compensation Committee
1998
(formation)
1998
(formation)
Ricarda Demarmels2 Member
Chairwoman of the Audit Committee
2018
2019
2019
2019
Heinrich Fischer2
Member
Member of the Audit Committee
2011
2019
Member of the Independent
Directors’ Committee
Member of the Nomination and
Compensation Committee
Chairman of the Independent
Directors’ Committee and Lead
Independent Director
Markus Glauser2
Member
Member of the Audit Committee
2000
2019
Member of the Independent
Directors’ Committee
1 Dr. Moritz Lechner and Dr. Felix Mayer act for Sensirion AG, each on a 50 % basis, where they are responsible for sensor innovation
and strategic tasks.
2 Independent in the sense of the Swiss Code.
36
Corporate Governance
Sensirion Annual Report 2018 Liquid Flow Sensors
The single-use LD20 liquid flow sensor opens
up new possibilites for drug delivery.
When integrated into an infusion set, the sensor
can even detect the patient's heartbeat.
37
Sensirion Annual Report 2018Kapiteltitel Board of Directors
From left: Heinrich Fischer, Ricarda Demarmels, Moritz Lechner, Markus Glauser, and Felix Mayer
Dr. Moritz Lechner Co-Chairman, Swiss national, born in 1969
Moritz Lechner is one of the two founders and Co-Chairman of the Board of Directors of Sensirion Holding AG and a member
of the Nomination and Compensation Committee. He has been a member of the Board of Directors, acting as Chairman or
Vice-Chairman, since the incorporation of Sensirion in 1998. Until June 2016, he served as Co-CEO of the Company together
with Felix Mayer. Mr. Lechner has received numerous entrepreneurial awards. Currently, he serves on the Board of Direc-
tors of Dectris AG, as well as 3db Access AG and IRsweep AG. Mr. Lechner worked in the fields of microelectronics and
detector technology research at the Swiss Federal Institute of Technology (ETH Zurich) and the Paul Scherrer Institute,
and studied Physics at ETH Zurich, from which he also received his PhD in Microelectronics and Detector Technology.
Dr. Felix Mayer Co-Chairman, Swiss national, born in 1965
Felix Mayer is one of the two founders and Co-Chairman of the Board of Directors of Sensirion Holding AG and Chairman of
the Nomination and Compensation Committee. He has been a member of the Board of Directors, acting as Chairman or
Vice-Chairman, since the incorporation of Sensirion in 1998. Until June 2016, he served as Co-CEO of the Company together
with Moritz Lechner. Mr. Mayer worked at Siemens for five years and conducted research in the area of microtechnology
at the Swiss Federal Institute of Technology (ETH Zurich) for four years. He is a recipient of numerous entrepreneurial
awards. Currently, Mr. Mayer serves on the Board of Directors of Avantama AG, Optotune AG, and Luma Beef AG. He studied
Physics at ETH Zurich, from which he also received his PhD in Physics.
38
Corporate Governance
Sensirion Annual Report 2018 Ricarda Demarmels Non-Executive Director, Swiss national, born in 1979
Ricarda Demarmels has been a non-executive member of the Board of Directors of Sensirion Holding AG since 2018.
She serves as Chairwoman of the Audit Committee and is a member of the Independent Directors’ Committee. Prior to
joining the Board of Directors, she held various positions and as of June 2019 she will be the new CFO and a member of
the Group Management of the Emmi Group. Between 2015 and 2018, Ms. Demarmels served as CFO and member of
the Management Board at Orior AG. From 2009 until 2014, she worked for Capvis Equity Partners AG, where she was in
charge of various acquisitions and divestitures and supported the strategic development of portfolio companies. From
2005 to 2009, Ms. Demarmels led various strategy, M&A, and integration projects for Oliver Wyman, a global manage-
ment consulting firm. She studied Finance and Accounting at the University of St. Gallen and holds a Master's degree in
Business Administration from the University of St. Gallen (lic.oec. HSG).
Heinrich Fischer Non-Executive Director, Swiss national, born in 1950
Heinrich Fischer has been a non-executive member of the Board of Directors of Sensirion Holding AG since 2011. He
serves as Chairman of the Independent Directors’ Committee and Lead Independent Director and is a member of the Audit
Committee and the Nomination and Compensation Committee. Prior to joining the Board of Directors, he was CEO of
the Saurer Group for eleven years until 2007. Prior to that, he was Head of Plant Engineering for optics and microelectronics
at Oerlikon Balzers Coating AG for ten years and a member of the Group Management of the Oerlikon-Bührle Group for six
years. Between 2012 and 2017, Mr. Fischer served on the Board of Directors of Orell Füssli Holding AG (as Chairman of the
Board), as well as on the Board of Directors of SWH Inc. He also served on the Board of Directors of Schweiter Technologies
AG between 2004 and 2012. Mr. Fischer is the Co-Founder of ISE AG, where he was Chairman of the Board of Directors
from 1993 to 2005. Currently, Mr. Fischer serves on the Board of Directors of Hilti AG (Chairman of the Board), Tecan
Group AG (Vice-Chairman of the Board), and CAMOX Fund. He received a Master's degree in Applied Physics and Electrical
Engineering from the Swiss Federal Institute of Technology (ETH Zurich) and an MBA from the University of Zurich.
Markus Glauser Non-Executive Director, Swiss national, born in 1948
Markus Glauser has been a non-executive member of the Board of Directors of Sensirion Holding AG since 2000.
He serves as member of the Audit Committee and the Independent Directors’ Committee. Prior to joining the Board of
Directors, he held a variety of management positions in the engineering and medical technology industry and a number
of management positions with private equity and venture capital firms. Currently, he has no other activities or vested
interests other than his function at the Company. He studied Engineering, Electrical Engineering, and Business Adminis-
tration at the Universities of Applied Sciences of Berne and Biel.
Corporate Governance
39
Sensirion Annual Report 2018 Changes in the composition of the Board of Directors
Gottlieb Knoch resigned as a member of the Board of Directors with effect as of the day prior to the IPO of Sensirion
Holding AG on 22 March 2018. At the Annual General Meeting on 8 March 2018, Ricarda Demarmels was elected
as a new member of the Board of Directors with effect as of 21 March 2018.
Other functions and activities
Pursuant to Article 29 of the Articles of Association, no member of the Board of Directors may hold more than ten
mandates on the supreme governing body of companies other than Sensirion Holding AG or its subsidiaries, of which
not more than four may be in listed companies.
Elections and terms of office
The members of the Board of Directors and the Chairman (or the two Co-Chairmen) of the Board of Directors are
elected individually by the general meeting of shareholders for a term of office until completion of the next Annual
General Meeting. Re-election is permitted. If the office of both Co-Chairmen is vacant, the Board of Directors has
to appoint a new Chairman from among its members for a term of office until completion of the next Annual General
Meeting. The Organizational Regulations of Sensirion Holding AG provide that the Board of Directors shall not
propose any candidate for election to the Board of Directors who is aged 70 years or above. On an exceptional basis,
the Board of Directors may propose candidates aged up to 75 years.
Internal organization
The Board of Directors may appoint one or several vice-chairmen from among its members. The Board also has to
appoint a secretary, who need not be a member of the Board of Directors. According to the Articles of Association
and the Organizational Regulations, the Board of Directors meets at the invitation of the competent Co-Chairman as
often as required and at least four times a year, or whenever a member of the Board of Directors so requests in
writing. In 2018, the Board of Directors held fourteen meetings, four of which were telephone conferences. The
meetings lasted on average approximately four hours each and the telephone conferences approximately two hours.
The CEO and CFO regularly participate in meetings of the Board of Directors in an advisory capacity. Other members
of the Executive Committee are invited to advise on individual items of the agenda. In addition to the ordinary and
extraordinary meetings of the Board of Directors, all members of the Board of Directors acted as members of the
Steering Committee for the IPO, which met in the presence of financial and legal advisors five times in 2018.
According to Article 3.6 of the Organizational Regulations and subject to certain exceptions, the Board of Directors
is quorate when the majority of its members (including at least one Co-Chairman) is present. Generally, the Board
of Directors may adopt a resolution by the majority of the votes cast. In case of a tie, the Co-Chairman who chairs
the meetings of the Board of Directors has the casting vote. However, according to the Organizational Regulations,
(i) decisions regarding the registration or non-registration of acquirers of shares as shareholders with voting rights
in deviation from the regulations governing such registrations and (ii) amendments to the Organizational Regulations
that are not of a merely formal nature or made to conform to statutory requirements require the consent of all
members of the Board of Directors. Resolutions of the Board of Directors may also be passed by way of written
consent (including consent by e-mail or other electronic communication), provided that no member of the Board of
Directors requests oral deliberations.
Powers and duties
The Board of Directors is responsible for the ultimate direction of the Company and the Group’s business and the
supervision of the persons entrusted with the management of Sensirion. The Board of Directors represents Sensirion
Holding AG vis-à-vis third parties and manages all matters that have not been delegated to another corporate body
by law, the Articles of Association, the Organizational Regulations, or other internal regulations.
40
Corporate Governance
Sensirion Annual Report 2018 Pursuant to Article 19 of the Articles of Association, the non-transferable and inalienable duties of the Board of
Directors include:
§ the ultimate management of the Company and the issuance of necessary instructions;
§ the determination of the organization of the Company;
§ the structuring of the accounting system, of the financial controls, and the financial planning;
§ the appointment and dismissal of the persons entrusted with management and representation of the Company,
and issuance of rules on the signature authority;
§ the ultimate supervision of the persons entrusted with management, in particular in view of compliance with the
law, the Articles of Association, regulations, and directives;
§ the preparation of the annual report and the compensation report;
§ the preparation of the general meeting of shareholders and the implementation of its resolutions;
§ the adoption of resolutions on the increase of the share capital to the extent that such power is vested in the
Board of Directors, the confirmation of capital increases, the preparation of the report on the capital increase, and
the respective amendments to the Articles of Association (including deletions);
§ the non-transferable and inalienable duties and powers of the Board of Directors pursuant to the Swiss Merger Act;
§ the notification of the judge if liabilities exceed assets; and
§ other powers and duties reserved to the Board of Directors by law or the Articles of Association.
In addition, Article 3.3 of the Organizational Regulations reserves the powers of the Board of Directors (i) to approve
the annual investment and operating budgets of the Company and the Group, (ii) to approve certain major transac-
tions, including the purchase and sale of real estate, the raising of financial indebtedness outside of the ordinary
course of business, the granting of unsecured loans and guarantees exceeding CHF 2,000,000, and any unbud-
geted non-recurring investment exceeding CHF 2,000,000 and any recurring expenses exceeding CHF 500,000 per
year, (iii) to adopt or amend the Company’s compensation and benefits strategy and the basic elements of the
compensation system for the members of the Board of Directors and of the Executive Committee, (iv) to adopt or
amend any participation or incentive plans for the members of the Board of Directors, the Executive Committee, or
other employees, (v) subject to shareholder approval of the maximum aggregate compensation, to approve the
compensation of each member of the Board of Directors, (vi) to establish the Company’s dividend policy and to
approve share buy-back programs, and (vii) to exercise shareholder rights in other Group companies and to super-
vise their business operations. Further, the Board of Directors approves the individual fixed and variable compensa-
tion of the members of the Executive Committee.
In accordance with and subject to Swiss law, the Articles of Association, and the Organizational Regulations, the Board
of Directors has delegated the Company’s management to the Executive Committee under the direction of the CEO.
The Co-Chairmen
According to Article 4 of the Organizational Regulations, each Co-Chairman may exercise all powers of a Chairman
externally and may represent the Company like a Chairman using the title of Co-Chairman. One Co-Chairman is to
chair the meetings of the Board of Directors (as of 31 December 2018 Dr. Moritz Lechner), and the other Co-Chair-
man is to chair the annual general meeting of shareholders (as of 31 December 2018 Dr. Felix Mayer). The Co-Chair-
man who is to chair the meetings of the Board of Directors has the casting vote at meetings of the Board of Direc-
tors. Further, the Board of Directors has delegated the preparation and implementation of its resolutions as well as
the supervision of particular matters to the Co-Chairmen. Should a Co-Chairman be unable to exercise his func-
tions, his functions are assumed by the other Co-Chairman, or, if the latter should also be unavailable, by another
member of the Board of Directors appointed by the Board of Directors.
Corporate Governance
41
Sensirion Annual Report 2018 Board Committees
The Board of Directors established on 9 March 2018 three standing board committees: an audit committee (the
“Audit Committee”), a nomination and compensation committee (the “Nomination and Compensation Committee”),
and an independent directors’ committee (the “Independent Directors’ Committee”).
According to the Organizational Regulations, each standing board committee has the power to procure any information
and assistance from within the Company and the Group that it needs to discharge its responsibilities and is authorized
to obtain subject-specific professional consultancy services from third parties at the expense of the Company.
The chairperson of a board committee reports to the Board of Directors on the committee's activities. The minutes of
the meetings of the board comittees are available upon request to the members of the Board of Directors.
Audit Committee
The chairperson and the other members of the Audit Committee are appointed by the Board of Directors. According
to Article 5.2 of the Organizational Regulations, a majority of the members of the Audit Committee shall be indepen-
dent as defined by the Swiss Code of Best Practice for Corporate Governance of 2014, published by economiesuisse
(the “Swiss Code”), and a majority of the members of the Audit Committee, including its chairperson, shall be
experienced in financial and accounting matters. As of 31 December 2018, the Audit Committee consisted of
Ricarda Demarmels (Chairwoman), Heinrich Fischer, and Markus Glauser.
According to the Charter of the Audit Committee attached to the Organizational Regulations, the Audit Committee’s
responsibilities include:
§ assessing the quality and effectiveness of the external audit and the internal control system, including risk
management;
§ reviewing the Company’s financial statements and the auditors’ management letter;
§ making recommendations to the Board of Directors regarding the submission of the Company’s financial state-
ments to the Annual General Meeting;
§ assessing the performance, costs, and independence of the external auditors;
§ reviewing the scope of the external audit and any other matters pertaining thereto;
§ ensuring appropriate reporting by the external auditors;
§ reviewing any questions, comments, or suggestions the external auditors may have regarding internal control,
risk management, accounting practices and procedures with the external auditors and the CFO;
§ supporting the Board of Directors in preparing the proposal to the general meeting of shareholders to elect or
remove the external auditors;
§ discussing any material legal or risk matters with the Executive Committee;
§ supporting the Board of Directors with regard to financial planning and the principles of accounting and financial
control;
§ reviewing the appropriateness of the Audit Committee’s powers and responsibilities at least annually and propos-
ing any amendments to the Board of Directors; and
§ any other tasks delegated to the Audit Committee by the Board of Directors.
The Audit Committee holds meetings as often as required, but in any event at least twice a year, or as requested by
any of its members. Following its establishment in March 2018, the Audit Committee held two meetings in 2018
which all members of the Audit Committee, as well as the CFO in an advisory capacity, attended.
42
Corporate Governance
Sensirion Annual Report 2018 Nomination and Compensation Committee
The members of the Nomination and Compensation Committee are elected by the general meeting of shareholders
for a term of office until completion of the next Annual General Meeting. Re-election is possible. According to the
Articles of Association, the compensation committee shall consist of at least three members of the Board of Direc-
tors, which also applies to the Nomination and Compensation Committee for so long as the functions of a nomination
committee and a compensation committee are combined in one committee. In case of vacancies, the Board of
Directors may appoint substitute members from among its members for a term of office until completion of the next
Annual General Meeting. The chairperson of the Nomination and Compensation Committee is appointed by the
Board of Directors. According to the Organizational Regulations, at least one member of the Nomination and Com-
pensation Committee shall be independent as defined by the Swiss Code. As of 31 December 2018, the Nomination
and Compensation Committee consisted of Felix Mayer (Chairman), Moritz Lechner, and Heinrich Fischer, who were
appointed by the Board of Directors on 9 March 2018 prior to the entering into force of the current Articles of Asso-
ciation. Moritz Lechner and Felix Mayer, Co-CEOs until June 2016, were appointed to the Nomination and Compen-
sation Committee due to their long-standing experience with the Group and its workforce.
According to the Charter of the Nomination and Compensation Committee attached to the Organizational Regula-
tions, the Nomination and Compensation Committee’s responsibilities include:
§ reviewing and submitting proposals to the Board of Directors regarding the Company’s compensation and ben-
efits strategy and the basic elements of the compensation for members of the Board of Directors and the Exec-
utive Committee;
§ developing the compensation system for the members of the Board of Directors and of the Executive Committee
and ensuring its implementation;
§ reviewing and submitting proposals to the Board of Directors regarding any participation or incentive plans for
the members of the Board of Directors, the Executive Committee, or other employees;
§ making grants under participation or incentive plans to members of the Executive Committee, and delegating
authority to make grants to beneficiaries other than members of the Executive Committee;
§ reviewing and submitting proposals to the Board of Directors regarding the compensation of each member of the
Board of Directors;
§ resolving on the performance criteria and target values of the compensation of the members of the Executive Committee;
§ resolving on the fixed and variable compensation of the CEO and, upon recommendation of the CEO, of the other
members of the Executive Committee, subject to approval by the Board of Directors of the individual compensa-
tion and by the Annual General Meeting of the aggregate compensation;
§ determining selection criteria for the succession of the members of the Board of Directors and its committees,
the CEO and the other members of the Executive Committee (upon motion of the CEO) and establishing the
related succession planning;
§ assessing the performance of the members of the Board of Directors and of its committees, as well as that of
the members of the Executive Committee on an annual basis;
§ reviewing proposals to be made to the Board of Directors for the amendment of the Articles of Association, the
Organizational Regulations, or any other rules or regulations;
§ reviewing the appropriateness of the Nomination and Compensation Committee’s powers and responsibilities at
least annually and proposing any amendments to the Board of Directors; and
§ any other tasks delegated to the Nomination and Compensation Committee by the Board of Directors.
The Nomination and Compensation Committee holds meetings as often as required, but in any event at least twice
a year, or as requested by any of its members. Prior to the IPO, no Nomination and Compensation Committee existed;
following its establishment in March 2018, the Nomination and Compensation Committee held one meeting in 2018,
which all members, as well as the CEO in an advisory capacity, attended.
Corporate Governance
43
Sensirion Annual Report 2018 Independent Directors’ Committee
According to the Organizational Regulations, all members of the Board of Directors who are non-executive, have not
been members of the Executive Committee for at least three years, have no or comparatively minor business rela-
tions with the Company, and are not the Founders or other representatives of the shareholder pool to which the
Founders belong, collectively form the Independent Directors’ Committee. The chairperson of the Independent
Directors’ Committee is appointed by the members of the Independent Directors’ Committee and also acts as Lead
Independent Director. As of 31 December 2018, the Independent Directors’ Committee consisted of Heinrich Fischer
(Chairman and Lead Independent Director), Ricarda Demarmels, and Markus Glauser.
The responsibilities of the Independent Directors’ Committee include:
§ approving any transactions between Anchor Shareholders (or their representatives on the Board of Directors)
and the Group;
§ resolving any matters in which an Anchor Shareholder (or its representative on the Board of Directors) has a
conflicting interest;
§ reviewing the appropriateness of the Independent Directors’ Committee’s powers and responsibilities at least
annually and proposing any amendments to the Board of Directors;
§ resolving any changes to the Independent Directors’ Committee’s powers; and
§ any other tasks delegated to Independent Directors’ Committee by the Board of Directors.
The Independent Director’s Committee holds meetings as often as required or as requested by any of its members.
Following its establishment in March 2018, the Independent Director’s Committee held one meeting in 2018.
Areas of responsibility of the Board of Directors and the Executive Committee
The Board of Directors has the ultimate responsibility for the business strategy of Sensirion and supervises the
management of the Group. In particular, it decides on the strategic, organizational, accounting, and financial plan-
ning framework of Sensirion.
The Board of Directors has delegated the management to the Executive Committee under the direction of the CEO. The
powers and duties of the CEO and the Executive Committee are set forth in the Organizational Regulations. The CEO has
all powers and duties that are not reserved to the Board of Directors or the Co-Chairmen by virtue of law, the Articles of
Association, or the Organizational Regulations. The CEO chairs the Executive Committee and is responsible for:
§ preparing and implementing resolutions of the Board of Directors and making proposals to the Board of Directors;
§ organizing, managing, and supervising the day-to-day business;
§ making proposals regarding the appointment of other members of the Executive Committee and for the approval
of certain major transactions;
§ organizing the Executive Committee and preparing, calling, and chairing Executive Committee meetings; and
§ ensuring a timely and orderly flow of information between the Executive Committee and the Board of Directors.
The Executive Committee shall support the CEO in the discharge of his duties and shall consider and decide on all
matters and decisions material to the Group that are within its purview. The Executive Committee meets on a regular
basis in accordance with the guidelines and instructions established from time to time by the CEO.
Information and control instruments vis-à-vis the Executive Committee
The CEO informs the Board of Directors at its meetings on the current course of business and all major business matters
of the Company or the Group companies. On a quarterly basis, the CEO informs the Board of Directors on quarterly results
(with a comparison to the budget and the result of the previous quarter and the same quarter of the previous year), the
Company’s financial situation, as well as any developments that might have a significant impact on the course or conduct
of business. Any extraordinary matters must be reported by the CEO to the members of the Board of Directors without delay.
44
Corporate Governance
Sensirion Annual Report 2018 The Co-Chairmen maintain close contact with the CEO and the other members of the Executive Committee. The
course of business and all major issues are discussed at regular meetings with the CEO and/or the CFO scheduled
at least once a month. Each member of the Board of Directors may request information from the CEO and from the
other members of the Executive Committee on the course of business.
The Executive Committee updates the Board of Directors on the status of the business plan and key financial figures on
a monthly basis. Disruptive differences to the business plan are reported by the CEO to the Co-Chairmen on a case-by-
case basis. The yearly forecast and business plan are approved by the Board of Directors.
The internal audit, control, and risk management systems within the Group are based on structured and assigned
competencies, which are implemented in the ERP system based on function and legal entity. To mitigate financial risks,
the subsidiaries may not take out any credit lines nor any bank loans with third parties.
The subsidiaries report their financial results to the Executive Committee on a monthly basis. Recruiting of new staff at
the subsidiary level has to be approved by the respective board of directors. In addition, the Board of Directors of Sen-
sirion Automotive Solutions AG receives a separate financial and business update from its business on a monthly basis.
Executive Committee
In accordance with and subject to Swiss law, the Articles of Association, and the Organizational Regulations, the Board
of Directors has delegated the Company’s management to the Executive Committee under the direction of the CEO.
Members of the Executive Committee
According to the Organizational Regulations, the CEO is appointed by the Board of Directors and shall not be a
member of the Board of Directors. The other members of the Executive Committee are appointed or removed by the
Board of Directors upon motion of the CEO.
As of 31 December 2018, the Executive Committee consisted of six members (including the CEO). The following
table sets forth the name and position of each member of the Executive Committee.
Name
Appointed
Position
Dr. Marc von Waldkirch
Dr. Johannes Bleuel
Matthias Gantner
Heiko Lambach
Dr. Andrea Orzati
Dr. Johannes Schumm
2016
2012
2012
2011
2013
2016
CEO
VP Operations
CFO
VP Human Resources
VP Sales & Marketing
VP Research & Development
Other functions and activities
Pursuant to Article 29 of the Articles of Association, no member of the Executive Committee may hold more than
five mandates on the supreme governing body of companies other than Sensirion Holding AG or its subsidiaries, of
which not more than one may be in listed companies.
Management contracts
Sensirion Holding AG has not entered into any management contracts with other companies (or individuals) not
belonging to the Group.
Corporate Governance
45
Sensirion Annual Report 2018
Executive Committee
From left: Marc von Waldkirch, Heiko Lambach, Johannes Schumm, Andrea Orzati, Johannes Bleuel, and Matthias Gantner
Dr. Marc von Waldkirch CEO, Swiss national, born in 1974
Marc von Waldkirch has been serving as the Company’s CEO since 2016. Before becoming CEO, he held a variety of
management positions in the Group from 2005 to 2016, including Vice President Research & Development and Head of
the Research & Development Liquid Flow Sensors. Before joining the Group, he worked as Research Assistant at the
Swiss Federal Institute of Technology (ETH Zurich). Currently, Mr. von Waldkirch serves on the Board of Directors of
Tannerberg AG. He received a MSc in Physics and a PhD in Electrical Engineering, both from ETH Zurich.
Dr. Johannes Bleuel VP Operations, German national, born in 1971
Johannes Bleuel has been the Vice President Operations since 2012. Prior to joining the Group, he was COO of E-Senza
Technologies GmbH for three years. Prior to that, he worked at Siemens Communications in Germany and the United
States for nine years, where he held various management positions in R&D and Operations. He studied Physics at the Tech-
nical University Darmstadt (Dipl.Phys.) and holds a PhD in Physics from the Technical University Munich.
46
Corporate Governance
Sensirion Annual Report 2018 Matthias Gantner CFO, German national, born in 1964
Matthias Gantner has been serving as the Company’s CFO since 2012. Mr. Gantner has many years of experience in
finance and, prior to joining the Group, he held the position of Head of Service and Sales Order Processing at allsafe Jung-
falk, where he also was a member of the Executive Committee for one year. Prior to that, he held various functions
related to finance and controlling at Norican Group for thirteen years and worked as Controller at Schiesser Eminence
Group for three years. He holds a degree in Business Administration from the University of Applied Sciences, Pforzheim
(Dipl.-Betriebswirt).
Heiko Lambach VP Human Resources, German national, born in 1968
Heiko Lambach has been the Vice President Human Resources since 2011. Prior to joining the Group, he held various
human resources positions, including the position of Director Human Resources at Shot Blast Europe (Georg Fischer)
DISA Industrie AG for eight years. Prior to that, he worked as Human Resources Manager at FJA Feilmeier & Junker AG in
Germany for five years. After studying Economics at the University of Applied Sciences in Bochum, he joined Orsay GmbH
in Germany, where he started his career as Personnel Officer. Heiko Lambach holds a degree in Business Administration
(Dipl.-Betriebswirt).
Dr. Andrea Orzati VP Sales & Marketing, Italian and Swiss national, born in 1973
Andrea Orzati has been Vice President Sales & Marketing since 2013. After joining the Group in 2008, he held various
positions, including Vice President of Mobile & Consumer Business, Director International Sales, and Manager Distribution
Network. Before that, he worked for u-blox AG as Design Manager for three years and was a Research Group Leader at the
Swiss Federal Institute of Technology (ETH Zurich) for two years. Currently, Mr. Orzati serves on the Board of Directors
of Teqable AG. He studied Electronic Engineering at the University of Cagliari and holds a PhD in Microwave Electronics from
ETH Zurich, as well as a joint MBA from the Ecole Polytechnique Fédérale de Lausane (EPFL) and the Faculty of Business
and Economics of the University of Lausanne (HEC Lausanne).
Dr. Johannes Schumm VP Research & Development, German national, born in 1979
Johannes Schumm has been the Vice President Research & Development since 2016. Before that, he worked as Director
of Research & Development Pressure Sensors and Project Manager. Prior to joining the Group in 2010, he was Research
Assistant at the Swiss Federal Institute of Technology (ETH Zurich) for four years. Currently, Mr. Schumm serves on the
Board of Directors of Clarity Movement Co., Ltd. He studied Electrical Engineering and Information Technology at RWTH
Aachen University and received a PhD in Electrical Engineering from ETH Zurich.
Corporate Governance
47
Sensirion Annual Report 2018 Compensation, Shareholdings and Loans
Information on the compensation and shareholdings of the members of the Board of Directors and the Executive
Committee are set forth in the Compensation Report starting on page 52.
Shareholders’ Participation Rights
Voting rights restrictions and representation
At the general meeting of shareholders of Sensirion Holding AG, each registered share of Sensirion Holding AG entitles
the owner to one vote. A shareholder may only exercise voting rights or rights associated therewith to the extent that
such shareholder has been recorded in the share register as a shareholder with voting rights. No shareholder or proxy
may, directly or indirectly, exercise voting rights attached to shares that he or she owns or represents that would col-
lectively exceed 5 % of the shares of Sensirion Holding AG recorded in the commercial register (the “Voting Limit”; see
Article 12 of the Articles of Association). According to Article 12 para. 3 of the Articles of Association, a group clause
applies to determine whether the Voting Limit is crossed. The Voting Limit does not apply to (i) the exercise of voting
rights by shareholders or their proxies, respectively, to the extent that their shares are registered with voting rights in
the share register (see above “Limitations on Transferability and Nominee Registrations” on pages 34 and 35), or (ii) to
the independent voting rights representative to the extent that he has been appointed as proxy by shareholders. A
resolution passed at a general meeting of shareholders with a qualified majority of at least two-thirds of the votes
represented and the absolute majority of the par value of shares represented at such meeting is required for the amend-
ment or cancelation of Article 12 para. 1 to 4 of the Articles of Association regarding the Voting Limit.
Shareholders of Sensirion Holding AG may elect to be represented by proxy at a general meeting of shareholders by
the independent voting rights representative, by their legal representative, or, by means of a written proxy, by any
other proxy, who need not be a shareholder. On 8 March 2018, the Annual General Meeting elected Anwaltskanzlei
Keller, Zurich, as the independent voting rights representative of Sensirion Holding AG for a term of office until
completion of the next Annual General Meeting.
Quorum and majorities required by the Articles of Association
There is no provision in the Articles of Association requiring the presence of shareholders to constitute a quorum for
general meetings of shareholders.
Shareholders’ resolutions generally require the approval of an absolute majority of the votes represented at the
general meeting of shareholders, unless otherwise required by Swiss law or the Articles of Association. A resolution
passed at a general meeting of shareholders with a qualified majority of at least two-thirds of the votes represented
and the absolute majority of the par value of shares represented at such meeting is required by law and the Articles
of Association for (i) any amendment of the Company’s purpose; (ii) the creation or cancelation of shares with priv-
ileged voting rights; (iii) restrictions on the transferability of registered shares and the cancelation of such a restric-
tion; (iv) an authorized or conditional share capital increase; (v) a share capital increase by conversion of equity
surplus, against contributions in kind or for purposes of an acquisition of assets, or the granting of special benefits;
(vi) the limitation or withdrawal of pre-emptive rights of shareholders; (vii) the relocation of the registered office of
the Company; (viii) the dissolution of the Company; and (ix) mergers, demergers, and conversions pursuant to the
Swiss Merger Act. In addition, such qualified majority is also required pursuant to Article 13 para. 2 section 10 of
the Articles of Association for the amendment or cancellation of the following provisions of the Articles of Associa-
tion, with the exception of editorial or technical amendments: (w) the provisions regarding the share register, restric-
tions on the registration of shareholders therein, and nominees (Article 5), (x) the provisions regarding shareholders’
48
Corporate Governance
Sensirion Annual Report 2018 right to vote, including the Voting Limit (Article 12 para. 1 to 4), (y) the provision regarding the size of the Board of
Directors (Article 14), and (z) the provision regarding the opting-up in relation to the obligation to make a mandatory
tender offer (Article 33).
Calling and agenda of the general meeting of shareholders
General meetings of shareholders are convened by the Board of Directors or, if necessary, by the external auditors in
accordance with Swiss law. An extraordinary general meeting of shareholders must be convened upon resolution of a
general meeting of shareholders or upon written request by one or several shareholders who represent an aggregate
of at least 10 % of the Company’s share capital recorded in the commercial register, provided that such request spec-
ifies the agenda items and the proposals or, in case of elections, the names of the proposed candidates. One or several
shareholders who represent an aggregate of at least 3 % of the Company’s share capital recorded in the commercial
register have the right to request that a specific proposal be put on the agenda for the next general meeting of share-
holders. The Articles of Association require that such request is communicated to the Board of Directors at least
45 calendar days prior to the next general meeting.
A general meeting of shareholders is convened at least 20 calendar days prior to such meeting by publishing a notice
of the meeting in the Swiss Official Gazette of Commerce (Schweizerisches Handelsamtsblatt). Registered shareholders
may in addition be notified of a general meeting of shareholders in writing.
Registration in the share register
Prior to a general meeting of shareholders, the Board of Directors will determine the date on which a shareholder has
to be registered in the share register in order to exercise his or her participation and voting rights in the general meeting
of shareholders. This record date will be published, together with the invitation to the general meeting of shareholders,
in the Swiss Official Gazette of Commerce. As a rule, the share register will be closed for new entries around 10 days
prior to the general meeting of shareholders.
Changes of Control and Defense Measures
Duty to make an offer and opting-up
Pursuant to the Swiss Federal Financial Market Infrastructure Act (“FMIA”), any person that acquires equity securities
of a company whose shares are listed on a Swiss stock exchange, whether directly or indirectly or acting in concert with
third parties, and, as a result, exceeds the threshold of 331⁄3 % of the voting rights (whether exercisable or not) of such
company, must submit a public tender offer to acquire 100 % of the listed equity securities of such company. Article 33
of the Articles of Association of Sensirion Holding AG provides for an opting-up pursuant to art. 135 para. 1 FMIA by
raising such threshold to 40 % of the voting rights of Sensirion Holding AG. Accordingly, the rules regarding mandatory
tender offers would only be triggered if the threshold of 40 % of the voting rights is exceeded.
Clauses on changes of control
Under the IPO Loyalty Share Program, Sensirion Holding AG issued restricted share units (“RSUs”) to employees of the
Group, including members of the Executive Committee (see Compensation Report on pages 60 and 63). In addition,
Sensirion Holding AG granted RSUs to employees of the Group, including members of the Executive Committee, under
the Bonus and Restricted Share Unit Plan of Sensirion Holding AG (see Compensation Report on pages 59 and 60, as
well as pages 62 and 63). In the event of a change of control of Sensirion Holding AG, the Board of Directors may in its
sole discretion (i) terminate unvested RSUs against compensation, (ii) convert or replace unvested RSUs, and (iii), in the
event of a conversion, sell the shares resulting from such conversion.
Corporate Governance
49
Sensirion Annual Report 2018 Auditors
Duration of the mandate and term of office of the lead auditor
KPMG AG (“KPMG”), Badenerstrasse 172, 8036 Zurich, Switzerland has acted as statutory external auditors of Sen-
sirion Holding AG since 2008. The Annual General Meeting re-elected KPMG as external auditors on 8 March 2018.
Jürg Meisterhans (Partner) has been acting as the responsible lead auditor since 2012. In accordance with Swiss law,
the lead auditor will rotate at least every seven years.
Auditing fees and additional fees
In the financial year 2018, total auditing fees charged by KPMG for the audit of the consolidated financial statements
of Sensirion Holding AG and its Group companies as well as the audit of the statutory financial statements of Sensirion
Holding AG amounted to CHF 692,747. This includes extraordinary auditing fees of CHF 360,000 that were charged in
connection with the preparation of a comfort letter in connection with the IPO.
For additional services performed by KPMG in the financial year 2018, Sensirion was charged total non-auditing fees
as follows.
Service, in CHF
Tax advice
Transfer pricing advice
Restatement of consolidated financial statements in accordance with IFRS
Total
Amount
20,373
46,020
106,009
172,402
Information instruments
The Board of Directors exercises its responsibility for the supervision of the auditors through the Audit Committee
which assesses the quality and effectiveness of the external audit on an regular basis. The Audit Committee reviews
the scope of the external audit, the audit plan, as well as the results of the external audit. Further, the Audit Committee
reviews any questions, comments, or suggestions of the external auditors regarding internal control, risk manage-
ment, and accounting practices and procedures with the external auditors and the CFO.
In addition to the audit reports on the consolidated financial statements and the statutory financial statements of
Sensirion Holding AG, the external auditors prepare a comprehensive report for the Board of Directors pursuant to
art. 727a CO. Following the establishment of the Audit Committee in 2018, the Audit Committee discussed the com-
prehensive report and the results of the external audit in detail with the external auditors for the first time in 2019.
Prior to the IPO, the lead auditor attended one meeting of the Board of Directors by telephone conference to present its
comprehensive audit report in 2018. Following the IPO, the lead auditor attended all meetings of the Audit Committee.
Further, the Audit Committee assesses the performance, costs, and independence of the external auditors on an
annual basis and supports the Board of Directors in preparing the proposal to the general meeting of shareholders to
elect the external auditors.
The Audit Committee verifies that any additional services of the external auditors not relating to the audit services are
provided within the independence requirements pursuant to Swiss law. The external auditors are required to confirm
that their performance of these additional services will not affect their independence for the audit mandate.
50
Corporate Governance
Sensirion Annual Report 2018 Information Policy
Sensirion Holding AG publishes its annual report and its interim report on the dates listed in the financial calendar set
forth below and published on its Investor Relations website at https://www.sensirion.com/financial-calendar. Financial
reports, press releases, information on corporate governance, and share information are available on the Investor
Relations website at https://www.sensirion.com/investors.
The CEO, the CFO, and the Director Investor Relations regularly take part in various external investor meetings.
Sensirion Holding AG publishes price-sensitive information in accordance with its disclosure obligations pursuant to the
rules of the SIX Swiss Exchange (rules on ad hoc publicity). Interested persons may join our mailing list for ad hoc
disclosures by subscribing for our financial media releases at https://www.sensirion.com/financial-newsletter.
Contact Information
Sensirion Holding AG
Andrea Wüest
Director of Investor Relations
Laubisrütistrasse 50
8712 Stäfa
Phone +41 44 927 11 40
andrea.wueest@sensirion.com
Financial Calendar
14 May 2019
21 August 2019
Annual general meeting
2019 half-year results and interim report
Corporate Governance
51
Sensirion Annual Report 2018 Compensation Report
This Compensation Report describes Sensirion’s principles of compensation and provides information on the com-
pensation awarded to the members of the Board of Directors and the Executive Committee in the financial year
2018. The Compensation Report has been prepared in accordance with the Ordinance against Excessive Compen-
sation at Publicly Listed Corporations (the “Compensation Ordinance”), item 5 of the Directive on Information relat-
ing to Corporate Governance of SIX Exchange Regulation, and the Swiss Code of Best Practice for Corporate
Governance issued by economiesuisse (the “Swiss Code”).
The Compensation Report will be presented to the annual general meeting of shareholders of Sensirion Holding AG
(the “Annual General Meeting”) on 14 May 2019 for a consultative vote.
Basic Principles of Compensation
The compensation system of Sensirion aims to attract, engage and retain talented, highly qualified and motivated
executives and employees to implement Sensirion’s strategy, to ensure sustainable corporate growth, to foster an
entrepreneurial mindset, and to create long-term sustainable shareholder value. The key principles of our compen-
sation system are based on our company values “fair and honest, work together, top performance” and are as
follows:
§ Fairness, transparency and simplicity (reflecting “fair and honest”);
§ Reward for performance (reflecting “top performance”);
§ Focus on sustainable long-term value creation, thereby aligning executives’ and employees’ interests with
shareholders’ interests (reflecting “work together”).
Our guiding principles for the annual bonus of the members of the Executive Committee and all other employees are
as follows:
§ Employees participate in the long-term development of Sensirion by way of the Bonus and RSU Plan.
§ At Sensirion, individual performance is assessed against pre-defined individual performance objectives and
discussed with the supervisor as part of a year-end personal review meeting where new individual performance
objectives are determined for the following year.
§ Sensirion believes that individual performance cannot be fully measured only by key performance indicators and
that looking only at quantitative targets may create wrong incentives.
§ Therefore, (i) the bonus takes into account the overall assessment of an employee's individual performance by
their direct supervisor and (ii) the major part of an employee's compensation consists of a fixed base salary
and the variable bonus only accounts for a small portion of the total compensation.
§ For the members of the Executive Committee, the aggregate variable compensation is subject to retrospective
approval by the Annual General Meeting.
Compensation Governance
Responsibility for compensation
In accordance with the Articles of Association and the Organizational Regulations of Sensirion Holding AG, the Board
of Directors is responsible for the compensation and benefits strategy of Sensirion and for the basic elements of the
52
Compensation Report
Sensirion Annual Report 2018 compensation system for the members of the Board of Directors and of the Executive Committee. The Board of Direc-
tors approves the individual compensation of the members of the Board of Directors and the Executive Committee
subject to approval of the maximum aggregate compensation by the Annual General Meeting.
The Nomination and Compensation Committee supports the Board of Directors in compensation-related matters. It
consists of at least three members of the Board of Directors, of which at least one member must be independent as
defined by the Swiss Code. As of 31 December 2018, the Nomination and Compensation Committee consisted of
Felix Mayer (Chairman), Moritz Lechner, and Heinrich Fischer. According to the Charter of the Nomination and Com-
pensation Committee attached to the Organizational Regulations, the Nomination and Compensation Committee has
the following main tasks:
§ developing the compensation system for the members of the Board of Directors and of the Executive Committee and
ensuring its implementation;
§ making grants under participation or incentive plans to members of the Executive Committee, and delegating
authority to make grants to beneficiaries other than members of the Executive Committee;
§ resolving on the performance criteria and target values of the compensation of the members of the Executive
Committee; and
§ resolving on the fixed and variable compensation of the CEO and, upon recommendation of the CEO, of the other
members of the Executive Committee, subject to approval by the Board of Directors of the individual compensa-
tion and by the Annual General Meeting of the maximum aggregate compensation.
The Nomination and Compensation Committee holds meetings as often as required, but in any event at least two times
a year, or as requested by any of its members. Following its establishment in March 2018, the Nomination and Com-
pensation Committee held one meeting in 2018, which all members attended. The Chairman of the Nomination and
Compensation Committee reports to the Board of Directors on the committee's activities. The minutes of the meetings
of the Nomination and Compensation Committee are available upon request to the members of the Board of Directors.
Additional information on the Nomination and Compensation Committee is provided in the Corporate Governance
Report on page 43.
Authorities in compensation-related matters
AGM
Board
NCC
CEO
Compensation and benefits strategy;
basic elements of compensation system
Maximum aggregate compensation of Board
Approves
Approves
Proposes
Proposes
Approves
Proposes
Proposes
Proposes
Proposes
Approves
Individual compensation of Board members
Maximum aggregate fixed compensation
of EC (prospective)
Aggregate variable compensation
of EC (retrospective)
Individual compensation of CEO
Individual compensation of other EC members
Performance criteria and target values
of compensation of EC members
Approves
Proposes
Proposes
Approves
Approves
Proposes
Proposes
Approves
Proposes
Proposes
Compensation Report
Consultative vote Approves
Proposes
AGM: Annual General Meeting; Board: Board of Directors; NCC: Nomination and Compensation Committee; CEO: Chief Executive
Officer; EC: Executive Committee
Compensation Report
53
Sensirion Annual Report 2018
Shareholders’ approval of compensation (Say on Pay)
In accordance with art. 18 of the Compensation Ordinance and Article 25 of the Articles of Association, the Annual
General Meeting must approve the proposals by the Board of Directors regarding the aggregate amounts of:
(1) the maximum compensation of the Board of Directors until completion of the next Annual General Meeting;
(2) the maximum fixed compensation of the Executive Committee for the following financial year; and
(3) the variable compensation of the Executive Committee for the preceding financial year.
The following chart shows for which periods proposals on compensation will be submitted for approval to the Annual
General Meeting on 14 May 2019.
AGM 2019
(14 May 2019)
AGM 2020
1
Board of Directors
Maximum aggregate compensation of
Board of Directors until completion of
Annual General Meeting 2020 (prospective)
2
Executive Committee fixed
Maximum aggregate fixed compensa-
tion of Executive Committee for financial
year 2020 (prospective)
3
Executive Committee variable
Aggregate variable compensation of
Executive Committee for financial year
2018 (retrospective)
Financial year 2018
Financial year 2019
Financial year 2020
If the maximum aggregate amount of compensation of the Executive Committee already approved by the Annual
General Meeting is not sufficient to also cover the compensation of persons newly appointed to or promoted within
the Executive Committee, each such person may be paid up to 40 % (in the case of the CEO) or 20 % (all other
members of the Executive Committee), as applicable, of the aggregate amount of (maximum) compensation of the
Executive Committee last approved by the Annual General Meeting.
Compensation rules in the Articles of Association
The Articles of Association of Sensirion Holding AG, which can be found on our website (https://www.sensirion.com/
articles-of-association-internal-regulations), provide for the principles of compensation applicable to the Board of
Directors and the Executive Committee. These provisions include:
§ Approval of the compensation of the Board of Directors and the Executive Committee by the Annual General
Meeting (Article 25);
§ Supplemental amount for changes to the Executive Committee (Article 26); and
§ Principles of compensation of the members of the Board of Directors and the Executive Committee (Article 27).
The Articles of Association do not provide for the granting of loans and credit facilities to the members of the Board
of Directors or the Executive Committee.
54
Compensation Report
Sensirion Annual Report 2018 Compensation of the Members of the Board of Directors
Compensation structure
The compensation for the members of the Board of Directors consists exclusively of a fixed compensation in cash
to ensure that the Board of Directors remains independent in exercising its supervisory duties towards the Executive
Committee. In accordance with the Articles of Association, the Board of Directors determines the amount of com-
pensation of its members based on their position and level of responsibility on an annual basis.
The Co-Chairmen are both acting for Sensirion AG, Stäfa, Switzerland, each on a 50 % basis, and are responsible
for sensor innovation and strategic tasks. They are not involved in the day-to-day management of Sensirion. For their
work, each Co-Chairman receives a fixed compensation of CHF 250,000 p.a.. In addition, they participate in the
occupational pension plans of Sensirion. The Co-Chairmen are neither entitled to a performance-related compen-
sation nor to any additional compensation as Co-Chairmen and chairman or member of any committee.
The compensation awarded to the other members of the Board of Directors consists of a fixed board membership fee
of CHF 50,000 p.a. and additional fixed fees as chairperson or member of a committee of the Board of Directors as set
forth below.
Elements of Board compensation (in CHF per year)
Chairperson
Member
Board of Directors
Audit Committee (AC)
Nomination and Compensation Committee (NCC)
Independent Directors’ Committee
250,0001
30,000
n/a2
10,000
50,000
20,000
10,0003
10,000
1 Each Co-Chairman receives a fixed compensation by Sensirion AG, each on a 50 % basis, being responsible for sensor innovation
and strategic tasks. The Co-Chairmen do not receive any additional compensation as Co-Chairmen of the Board of Directors.
2 Dr. Felix Mayer, Co-Chairman, does not receive any additional compensation as chairman of the NCC.
3 Dr. Moritz Lechner, Co-Chairman, does not receive any additional compensation as member of the NCC.
Sensirion performs on a regular basis a comparison of the compensation for the members of the Board of Directors
with peers listed on the SIX Swiss Exchange from the technology and manufacturing sectors with revenues in the
range of CHF 50-600 million.
In addition, all members of the Board of Directors may be compensated with an additional fee in exceptional circum-
stances for performing special tasks for Sensirion, assigned to them and approved by the Board of Directors, that
are outside of their regular duties and activities as members of the Board of Directors. Except for a one-time advi-
sory fee awarded to Ricarda Demarmels, no member of the Board of Directors received any additional compensation
in connection with the IPO.
The members of the Board of Directors are compensated in cash. The cash compensation is paid to the Co-Chairmen
on a monthly basis and to the other members of the Board of Directors on an annual basis. Further, the members of the
Board of Directors are reimbursed for all reasonable expenses incurred by them in the discharge of their duties.
The Nomination and Compensation Committee reviews the annual compensation of the members of the Board of
Directors and submits a proposal to the Board of Directors regarding the compensation of each member of the
Compensation Report
55
Sensirion Annual Report 2018 Board of Directors on an annual basis. The Co-Chairmen and the other members of the Nomination and Compen-
sation Committee participate in meetings of the Nomination and Compensation Committee where their compensa-
tion is discussed. The Nomination and Compensation Committee decides collectively on the overall proposal to the
Board of Directors regarding the individual compensation of the members of the Board of Directors. The Board of
Directors approves collectively in one vote the individual compensation of the Co-Chairmen and its other members
as well as the proposal to the Annual General Meeting regarding the aggregate amount of maximum compensation
for all of its members once per year in a meeting where all members are present.
Compensation awarded to the members of the Board of Directors
In the financial year 2018, the Board of Directors consisted of five members. Prior to the IPO of Sensirion Holding
AG on 22 March 2018, Gottlieb Knoch resigned as a member of the Board of Directors and Ricarda Demarmels was
elected as a new member of the Board of Directors. For the financial years 2018 and 2017, the compensation of the
members of the Board of Directors is set out in the table below. The difference in compensation compared to the
previous year is due to the establishment of three standing committees of the Board of Directors (Audit Committee,
Nomination and Compensation Committee, and Independent Directors’ Committee) in connection with the IPO and
the resulting additional tasks for the members of the Board of Directors appointed to these committees.
Prior to the IPO, the Board of Directors approved the aggregate amount of compensation for the members of the
Board of Directors for the full financial year 2018 and the period until completion of the Annual General Meeting
2019 (assuming a period of 16 months). The compensation awarded to the members of the Board of Directors for
this term up to 31 December 2018 is within the limit approved by the Board of Directors.
Compensation of the Board of Directors in 2018 (audited)
In CHF
Dr. Moritz Lechner, Co-Chairman
Dr. Felix Mayer, Co-Chairman
Ricarda Demarmels2
Heinrich Fischer
Markus Glauser
Gottlieb Knoch 5
Total
Basic
compensation
Additional compensation
(committees, special tasks)
Pension benefits
and social security
contributions
Total
compensation
250,0001
250,0001
37,500
50,000
50,000
12,500
650,000
–
–
42,5003
30,000
22,500
–
41,054
42,034
6,4004
6,4004
5,8004
1,0004
291,054
292,034
86,400
86,400
78,300
13,500
95,000
102,688
847,688
1 Each Co-Chairman receives a fixed compensation by Sensirion AG, each on a 50 % basis, being responsible for sensor innovation
and strategic tasks. The Co-Chairmen do not receive any additional compensation as Co-Chairmen of the Board of Directors.
2 Member of the Board of Directors since 21 March 2018.
3 Includes a one-time advisory fee of CHF 12,500 for services rendered to the Board of Directors in connection with the IPO and
meetings of the Board of Directors prior to the IPO and prior to becoming a member of the Board of Directors.
4 Only includes social security contributions required by Swiss Law.
5 Member of the Board of Directors until 21 March 2018.
56
Compensation Report
Sensirion Annual Report 2018
Compensation of the Board of Directors in 2017 (non-audited)
In CHF
Dr. Moritz Lechner, Co-Chairman
Dr. Felix Mayer, Co-Chairman
Heinrich Fischer
Markus Glauser
Gottlieb Knoch3
Ricarda Demarmels4
Total
Fixed
compensation
Pension benefits
and social security
contributions
Total
compensation
250,0001
250,0001
50,000
50,000
33,333
8,3335
641,666
40,709
41,596
4,0002
4,0002
2,6672
6672
93,639
290,709
291,596
54,000
54,000
36,000
9,000
735,305
1 Each Co-Chairman receives a fixed compensation by Sensirion AG, each on a 50 % basis, being responsible for sensor innovation
and strategic tasks. The Co-Chairmen do not receive any additional compensation as Co-Chairmen of the Board of Directors.
2 Only includes social security contributions required by Swiss Law.
3 Member of the Board of Directors from 15 May 2017 until 21 March 2018.
4 Member of the Board of Directors since 21 March 2018.
5 Consists of a one-time advisory fee for services rendered to the Board of Directors in connection with the IPO and meetings of the
Board of Directors prior to the IPO and prior to becoming a member of the Board of Directors.
Loans or Credits to members of the Board of Directors (audited)
As of 31 December 2018, there were no outstanding loans or credit facilities between Sensirion and current
members of the Board of Directors.
Former members of the Board of Directors (audited)
In 2018, no compensation was paid to former members of the Board of Directors. As of 31 December 2018, there
were no outstanding loans or credit facilities between Sensirion and former members of the Board of Directors.
Related parties of members of the Board of Directors (audited)
In 2018, no compensation was paid to parties closely related to current or former members of the Board of Direc-
tors. As of 31 December 2018, there were no outstanding loans or credit facilities between Sensirion and parties
closely related to current or former members of the Board of Directors.
Compensation of the Members of the Executive Committee
Compensation structure
The compensation for the members of the Executive Committee (or “EC”) consists of an annual base salary, bene-
fits, and a bonus awarded in the form of restricted shares and restricted share units (“RSUs”).
Compensation components
Instrument
Purpose
Influenced by
Annual base salary
Basic fixed compensation
Paid in cash on a
monthly basis
Attract and retain talented
and highly qualified
executives
Position
Experience
Competitive market
Bonus
(share-based compensation)
Annual variable bonus
Paid in restricted shares
and RSUs
Reward individual and
company performance
Align to shareholders’
interest
Foster entrepreneurial
mindset
Contribution to short-,
mid- and long-term goals
of company
Personal initiative
Individual extra efforts
Compensation Report
57
Sensirion Annual Report 2018 Benefits
Pension benefits
and social security
contributions
Allowances in kind
Risk protection for
participants and their
dependents
Market practice and
position
Legal requirements
In connection with the IPO, the Board of Directors of Sensirion Holding AG granted RSUs under a special employee
participation plan (the “IPO Loyalty Share Program”) as a gratification bonus and incentive instrument for current
employees, including the members of the Executive Committee.
Base salary
Members of the Executive Committee receive an annual base salary as fixed compensation paid in cash on a
monthly basis. It reflects the scope and key areas of responsibilities of the position, the qualification and skills
required to perform the role, and the experience, seniority, and skill set of the individual person. The base salary is
reviewed and determined on an annual basis by the Nomination and Compensation Committee and approved by the
Board of Directors. The CEO makes recommendations to the Nomination and Compensation Committee for the base
salary of the other members of the Executive Committee.
Sensirion performs on a regular basis a comparison of the compensation for the members of the Executive Commit-
tee with peers listed on the SIX Swiss Echange from the technology and manufacturing sectors with revenues in the
range of CHF 50-600 million.
Bonus (Equity Award)
Members of the Executive Committee are awarded an annual bonus as variable compensation paid in restricted
shares subject to a blocking period of three years and in RSUs subject to a vesting period of three years under
Sensirion’s Bonus and Restricted Share Unit Plan (the “Bonus and RSU Plan”), as further described below. As a
result, the annual bonus consists of both a short-term incentive and a long-term incentive. According to Article 25
of the Articles of Association, the aggregate amount of the annual bonuses awarded to the members of the Executive
Committee is subject to the retrospective approval of the variable compensation for 2018 by the Annual General
Meeting on 14 May 2019.
The Nomination and Compensation Committee determines the annual bonus of the CEO, and upon recommendation
of the CEO, the annual bonus of each other member of the Executive Committee in its sole discretion on an annual
basis. Sensirion does not take a formulaic approach based on key performance indicators with respect to variable
compensation. The number of restricted shares to be awarded is determined by dividing the bonus amount by an
average price of the shares as quoted on the SIX Swiss Exchange over a period of time prior to the date of allocation
of the shares as determined by the Company in its sole discretion (in 2018, 10 (ten) trading days), rounded down to
the nearest full number of shares. The number of RSUs to be awarded is determined by the Board of Directors in its
sole discretion upon recommendation of the Nomination and Compensation Committee. In 2018, the RSUs awarded
for the 2018 bonus of the members of the Executive Committee represented 100 % of the value of the restricted
shares to create long-term incentives and alignment with shareholders’ interests. The Nomination and Compensa-
tion Committee submits to the full Board of Directors the individual annual bonuses to be awarded to the members
of the Executive Committee for approval on an annual basis.
As a result of Sensirion’s long-term business perspective based on sustainable innovation and resulting long investment
cycles, common, mainly short-term-oriented, quantitative target metrics are considered inappropriate to determine the
annual bonus of the members of the Executive Committee on a strictly mathematical basis. Sensirion believes that
individual performance cannot be fully measured only by key performance indicators, and that looking only at quan-
titative targets may create wrong incentives. Therefore, the major part of the compensation consists of a fixed base
58
Compensation Report
Sensirion Annual Report 2018 salary, and the variable bonus, which is based on performance criteria, only accounts for a small portion of the total
compensation.
For the members of the Executive Committee and all other employees, individual performance objectives are pre-defined
prior to the relevant financial year by such person's direct supervisor (for the CEO, the Co-Chairmen; and for the other
members of the Executive Committee, the CEO) and discussed as part of the year-end personal review meeting. At the
end of each financial year, the individual performance of the members of the Executive Committee and all other employ-
ees is assessed against those objectives and considered when determing the annual bonus. In general, the annual bonus
of the members of the Executive Committee and all other employees is determined by taking into account the following
performance criteria, which are weighted by the Nomination and Compensation Committee in its sole discretion:
§ Individual criteria
Personal contribution to the short-, mid-, and long-term goals of Sensirion and the team
Personal initiative and willingness to take on responsibility
Individual extra efforts to achieve short- and mid-term goals
Team player and interdisciplinary skills
Entrepreneurial approach to achieve Sensirion’s goals
§ Additional criteria for team and project leaders
Ability to attract, retain, and coach talents in one’s team
Communication and motivation skills
§ Team criteria
Overall performance of the team
Achievement of the team’s goals
In view of the intended method to determine the annual bonus for the Executive Committee, the Board of Directors
proposed, and the Annual General Meeting adopted on 8 March 2018, Article 25 of the Articles of Association requiring
retrospective shareholder approval of the variable compensation. Therefore, the Company will not deliver to the members
of the Executive Committee the restricted shares and the RSUs granted with the annual bonus in 2018 prior to the
approval by the Annual General Meeting 2019.
In 2018, the variable compensation in the form of the annual bonus, including RSUs, awarded to members of the Exec-
utive Committee represented around 20 % of the base salary for the CEO and between 14 % and 20 % of the base salary
for the other members of the Executive Committee. As a rule, the amount of the annual bonus, including RSUs, granted
to each member of the Executive Committee must not exceed 40 % of such member’s annual fixed base salary.
Details of the Bonus and RSU Plan
The Bonus and RSU Plan, which is applicable to all employees of Sensirion (including the members of the Executive
Committee) eligible for a bonus, includes special provisions applicable to the members of the Executive Committee
as set forth in this Compensation Report. In particular, members of the Executive Committee are awarded their bonus
only in the form of restricted shares and RSUs, whereas the other employees may choose between a cash bonus or
an equity bonus.
Restricted shares are subject to a blocking period of three years as from the date of grant during which the shares may
not be sold, otherwise transferred, pledged, or made the object of hedging transactions. The Co-Chairmen, acting
jointly, may waive this sale restriction in cases of hardship or in case of termination of employment to the extent permit-
ted by law. As a rule, all restricted shares remain restricted until the expiration of the blocking period.
The RSUs granted under the Bonus and RSU Plan are subject to a cliff vesting three years after the date of grant; pro-
vided that the relevant participant has not given or received notice of termination of his or her employment as set forth
Compensation Report
59
Sensirion Annual Report 2018
below by the vesting date, and has not sold or otherwise transferred the economic benefit of, or pledged any of the
restricted shares allocated to him or her as part of the equity award. On the vesting date, each RSU is automatically
converted into one share of Sensirion Holding AG. Sensirion may settle the RSUs with newly issued shares out of the
Company’s conditional share capital and/or out of the Company’s treasury shares and/or with shares purchased in the
open market.
In case of termination of the employment of a participant as a result of ordinary retirement, disability, or death, such
member’s RSUs vest at the relevant vesting date. In all other cases of termination, all unvested RSUs will be forfeited
without any compensation. The Co-Chairmen, acting jointly, may provide for exceptions to the extent permitted by law.
In the event of the acquisition of 50 % or more of the voting rights of all outstanding shares of Sensirion Holding AG, through
the acquisition of securities or a merger or consolidation, or the sale of substantially all of the Company’s assets to a third
party, the Board of Directors may, in its sole discretion, (i) terminate unvested RSUs against compensation, (ii) convert,
replace, or roll over unvested RSUs and, (iii) in the event of a conversion, sell the shares resulting from such conversion.
Restricted Share Units awarded under the IPO Loyalty Share Program
In connection with the IPO, the members of the Executive Committee received RSUs under a special employee
participation plan (the “IPO Loyalty Share Program”) as a gratification bonus and incentive instrument for current
employees. This extraordinary award was approved by the Board of Directors prior to the IPO and the entry into force
of Article 25 of the Articles of Association and, therefore, is not subject to the retrospective approval of the variable
compensation of the Executive Committee for 2018 by the Annual General Meeting 2019.
Under the IPO Loyalty Share Program, Sensirion granted 560,267 RSUs to its employees prior to the IPO, of which
members of the Executive Committee received 27,024 RSUs (which corresponds to 4.8 % of all RSUs granted under
this plan). The RSUs will be converted into shares of Sensirion Holding AG upon vesting as described below. Each
employee (including the members of the Executive Committee) received such number of RSUs as corresponds to the
proportion of his or her individual aggregate amount of bonus accumulated since the incorporation of the Company
over the aggregate amount of bonus of all current employees since the incorporation of the Company.
The RSUs vest and are settled in shares in two tranches. 50 % of the RSUs vested and were converted into shares
on 15 January 2019, and the remaining 50 % of the RSUs will vest and be converted into shares on 15 January
2020; provided, in each case, that the relevant participant is still employed by Sensirion on such date. In the event
of a participant’s termination of employment with Sensirion prior to such date, the RSUs are, as a rule, forfeited.
Each RSU issued under the IPO Loyalty Share Program converts into one share of Sensirion Holding AG. The con-
version price corresponds to the nominal value of a share to be paid by the beneficiaries. RSUs issued under the IPO
Loyalty Share Program may be settled with newly issued shares out of the Company’s conditional share capital and/
or out of the Company’s treasury shares and/or with shares purchased in the open market.
If a third party acquires 50 % or more of the voting rights of all outstanding shares of Sensirion Holding AG, through a
sale of securities or a merger or consolidation, or if all or substantially all of the Company’s assets are sold to a third
party, the Board of Directors may, in its sole discretion, terminate unvested RSUs against compensation, convert or
replace unvested RSUs and, in the event of a conversion, sell the shares resulting from such conversion.
Benefits
Benefits consist mainly of retirement and insurance plans that are designed to provide a reasonable level of protec-
tion for the employees and their dependents with respect to retirement, risk of disability, death and illness or acci-
dent. The current members of the Executive Committee are all employed under a Swiss employment agreement.
They participate in Sensirion’s occupational pension plan offered to all employees in Switzerland, whereby the base
60
Compensation Report
Sensirion Annual Report 2018
salary is insured up to the maximum amount permitted by law. Sensirion’s pension benefits exceed the legal require-
ments of the Swiss Federal Act on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG ).
In addition, members of the Executive Committee are eligible for standard benefits, such as a representation allow-
ance and benefits in kind, in particular, support when commuting by public transportation.
Shareholding ownership guideline
Pursuant to the Bonus and RSU Plan, no member of the Executive Committee shall sell or otherwise transfer his
shares in Sensirion Holding AG if, as a result, the value of his shareholdings in Sensirion Holding AG falls below
100 % of his last annual fixed and variable compensation. The value of the shareholdings held by an individual
member of the Executive Committee is determined by multiplying the number of shares (including restricted shares)
owned by such member with the market price of the shares.
Compensation awarded to members of the Executive Committee
In the financial year 2018, the Executive Committee consisted of six members. For the financial years 2018 and
2017, the compensation of the members of the Executive Committee is set out in the table below. Compared to
2017, the 2018 base salaries have been increased by the Board of Directors prior to the IPO based on a comparison
with peers prepared by the Co-Chairmen showing that an adjustment is appropriate. The bonuses in 2018 resulted
from (i) the extraordinary efforts by all members of the Executive Committee to execute a successful IPO while
keeping the regular business running, (ii) the implementation of the Bonus and RSU Plan as a new equity incentive
plan following the IPO, and (iii) by taking into account the comparison with peers prepared prior to the IPO. The
compensation in connection with the IPO Loyalty Share Program is shown separately to reflect its one-time nature
(see page 60). Pension and social security contributions are listed individually for the items base salary, variable
bonus, and IPO Loyalty Share Program.
Prior to the IPO, the Board of Directors approved the aggregate amount of fixed compensation for the members of
the Executive Committee for the full financial year 2018. The fixed compensation paid to the members of the Exec-
utive Committee for the financial year 2018 is within the limit approved by the Board of Directors.
Compensation of the Executive Committee in 2018 (audited)
Compensation Components (in CHF)
CEO
Other EC (5 members)
Total EC
Base salary
Pension and social security, for base salary
Total fixed compensation
Variable bonus (restricted shares and RSUs)1
Social security, for variable bonus
Total ordinary compensation, fixed and variable
IPO Loyalty Share Program (RSUs)2
Social security, for IPO Loyalty Share Program
Total compensation, including
IPO Loyalty Share Program
441,012
59,635
500,647
88,119
7,049
595,815
312,330
46,849
954,994
1,195,588
1,636,600
195,144
254,779
1,390,732
1,891,379
206,815
294,934
16,545
23,594
1,614,092
2,209,907
657,832
98,675
970,162
145,524
2,370,599
3,325,593
1 Variable bonus is based on the average of the share prices over 10 (ten) trading days prior to the date of allocation (CHF 41.20), and
consists of 50% restricted shares subject to a blocking period of three years and 50% RSUs subject to a vesting period of three
years, and is subject to approval by the Annual General Meeting on 14 May 2019. Following such approval, a revised fair value will
be determined for accounting purposes only.
2 Based on the offer price in the IPO (CHF 36.00). 50% of the RSUs vested and were converted into shares on 15 January 2019, and
the remaining 50% of the RSUs will vest and be converted into shares on 15 January 2020.
Compensation Report
61
Sensirion Annual Report 2018 Compensation of the Executive Committee in 2017 (non-audited)
Compensation Components (in CHF)
CEO
Other EC (5 members)
Total EC
Base salary
Bonus (participation certificates)
Pension and social security1
Total compensation
1 For base salary and bonus
400,010
60,000
58,476
518,486
1,129,123
1,529,133
114,987
175,944
174,987
234,420
1,420,054
1,938,540
Loans or credits to members of the Executive Committee (audited)
As of 31 December 2018, there were no outstanding loans or credit facilities between Sensirion and current
members of the Executive Committee.
Contracts with members of the Executive Committee
All members of the Executive Committee are employed under employment contracts of unlimited duration that are
subject to a notice period of six months. None of the members of the Executive Committee is contractually entitled
to termination payments or any change of control provisions other than the accelerated vesting and unblocking of
equity awards as described above.
Former members of the Executive Committee (audited)
In 2018, no compensation was paid to former members of the Executive Committee. As of 31 December 2018, there
were no outstanding loans or credit facilities between Sensirion and former members of the Executive Committee.
Related Parties of members of the Executive Committee (audited)
In 2018, no compensation was paid to parties closely related to current or former members of the Executive Com-
mittee. As of 31 December 2018, there were no outstanding loans or credit facilities between Sensirion and parties
closely related to current or former members of the Executive Committee.
Employee Participation Plans
As of 31 December 2018, Sensirion maintains two employee participation plans for its employees in Switzerland as
well as for employees of Sensirion’s foreign subsidiaries:
§ The Bonus and RSU Plan applies to the bonus granted to employees for their performance in the financial year
2018 (the “2018 Bonus”) and to any future bonuses.
§ The IPO Loyalty Share Program has been established in connection with the IPO as a one-time gratification
bonus and incentive instrument for current employees.
Bonus and RSU Plan
The purpose of the Bonus and RSU Plan is to provide employees eligible for a bonus with an opportunity to participate
in the creation of long-term shareholder value of Sensirion. Sensirion Holding AG and its subsidiaries may award a
bonus to their employees under the Bonus and RSU Plan; provided that such employees have not given or received
notice of termination at the time of the award. The Executive Committee determines the bonus of the employees in its
sole discretion on an annual basis. As a rule, the bonus amount shall not exceed 20 % of an employee’s annual fixed
salary. The annual funding pool for the Bonus and RSU Plan allocated to participants is determined by the Board of
Directors in its sole discretion upon recommendation of the Nomination and Compensation Committee.
62
Compensation Report
Sensirion Annual Report 2018 In 2018, Sensirion awarded bonuses to 568 employees who, in accordance with the Bonus and RSU Plan, were given
the opportunity to choose between payment of their 2018 Bonus either in cash (the “Cash Bonus”) or in restricted
shares of Sensirion Holding AG subject to a blocking period of three years and additional RSUs subject to a vesting
period of three years (the “Equity Bonus”). Any bonus is subject to the condition that the eligible employee has not been
given notice of termination for cause by its employer during the election period. If an eligible employee does not notify
Sensirion of his or her election during the election period, he or she receives his or her 2018 Bonus in the form of a Cash
Bonus. The election period for the 2018 Bonus ended on 7 January 2019.
For the Equity Bonus, the number of restricted shares is determined by dividing the amount of the Cash Bonus by an
average price of the shares as quoted on the SIX Swiss Exchange over a period of time prior to the date of allocation of
the shares as determined by the Company in its sole discretion (in 2018, 10 (ten) trading days), rounded down to the
nearest full number of shares. The number of RSUs to be awarded is determined by the Board of Directors in its sole
discretion upon recommendation of the Nomination and Compensation Committee. In 2018, the RSUs awarded for the
2018 Bonus of all employees (other than the members of the Executive Committee) represented 25 % of the value of
the restricted shares.
For further information, please refer to the description of the Bonus and RSU Plan on pages 59 and 60 of this Com-
pensation Report.
IPO Loyalty Share Program
Under the IPO Loyalty Share Program, Sensirion granted 560,267 RSUs to its employees (including members of the
Executive Committee) prior to the IPO. No additional RSUs have been or will be granted under the IPO Loyalty Share
Program. The RSUs will be converted into shares of Sensirion Holding AG upon vesting as described above for the
members of the Executive Committee. Each employee participating in the IPO Loyalty Share Program received such
number of RSUs as corresponds to the proportion of his or her individual aggregate amount of bonus accumulated since
incorporation of the Company over the aggregate amount of bonus of all current employees since the incorporation of
the Company.
For further information, please refer to the description of the IPO Loyalty Share Program on page 60 of this Compensation
Report.
Shares held by Members of the Board of Directors
and the Executive Committee
The details on shareholdings of the members of the Board of Directors and the Executive Committee are set forth in
Note 3.6 of the statutory financial statements of Sensirion Holding AG on page 130 of the Annual Report.
Compensation Report
63
Sensirion Annual Report 2018 Auditor’s Report
Report of the Statutory Auditor
To the General Meeting of Sensirion Holding AG, Stäfa
We have audited the accompanying compensation report of Sensirion Holding AG for the year ended 31
December 2018. The audit was limited to the information according to articles 14-16 of the Ordinance against
Excessive compensation in Stock Exchange Listed Companies (Ordinance) contained in the tables and sections
labeled “audited” on pages 56, 57, 61 and 62 of the compensation report.
Responsibility of the Board of Directors
The Board of Directors is responsible for the preparation and overall fair presentation of the compensation report
in accordance with Swiss law and the Ordinance against Excessive compensation in Stock Exchange Listed
Companies (Ordinance). The Board of Directors is also responsible for designing the remuneration system and
defining individual remuneration packages.
Auditor's Responsibility
Our responsibility is to express an opinion on the accompanying compensation report. We conducted our audit in
accordance with Swiss Auditing Standards. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the compensation report complies
with Swiss law and articles 14 – 16 of the Ordinance.
An audit involves performing procedures to obtain audit evidence on the disclosures made in the compensation
report with regard to compensation, loans and credits in accordance with articles 14 – 16 of the Ordinance. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatements in the compensation report, whether due to fraud or error. This audit also includes evaluating the
reasonableness of the methods applied to value components of compensation, as well as assessing the overall
presentation of the compensation report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Opinion
In our opinion, the compensation report for the year ended 31 December 2018 of Sensirion Holding AG
complies with Swiss law and articles 14 – 16 of the Ordinance.
KPMG AG
Juerg Meisterhans
Licensed Audit Expert
Auditor in Charge
Zurich, 6 March 2019
Patrick Biedermann
Licensed Audit Expert
KPMG AG, Badenerstrasse 172, PO Box, CH-8036 Zurich
KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss legal entity. All rights reserved.
64
Compensation Report
Sensirion Annual Report 2018 CO2 Sensor Modules
Accurate and reliable CO2 monitoring enables
our customers to increase energy efficiency and
well-being.
65
Sensirion Annual Report 2018 66
Sensirion Annual Report 2018Financial Report Financial Report
67
Sensirion Annual Report 2018Financial Report Table of Contents
Financial Report
Consolidated Financial Statements
Consolidated Income Statement
Consolidated Statement of Profit or Loss and Other Comprehensive Income (OCI)
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
1 Reporting Entity
2 Basis of Accounting
3 Use of Judgements and Estimates
4 Basis of Consolidation
5 Significant Accounting Policies
6 Standards, Interpretations, and Amendments Issued but Not yet Effective
7 Segment Reporting and Disaggregation of Revenue
8 Business Combination
9 Expenses by Nature
10 Employee Benefit Expenses / Personnel Costs
11 Other Income
12 Adjusted EBITDA
13 Net Finance Costs
14 Earnings per Registered Share
15 Employee Benefits
16 Post-Employment Benefits
17 Share-Based Payment Arrangement
18 Leases
19 Income Taxes
68
70
70
71
72
73
74
75
75
75
76
77
79
87
87
88
90
90
90
91
92
92
93
93
97
100
100
Sensirion Annual Report 2018Financial Report
20 Property, Plant, and Equipment
21 Goodwill and Intangible Assets
22 Inventories
23 Trade and Other Receivables
24 Equity
25 Capital Management
26 Loans and Borrowings
27 Financial Instruments
28 Related Parties
29 Subsequent Events
Auditor’s Report
Financial Statements of Sensirion Holding AG
Notes to the Financial Statements of Sensirion Holding AG
Proposed Appropriation of Available Earnings
Auditor’s Report
103
104
106
107
107
110
110
111
118
118
119
124
126
131
132
69
Sensirion Annual Report 2018Financial Report
Consolidated Financial Statements
Consolidated Income Statement
In thousands of CHF, for the year ended 31 December
Note
2018
in %
2017
Revenue
Cost of sales
Gross profit
– as % of revenue
Other income
Research and development expenses
Selling and distribution expenses
Administrative expenses
Operating profit (loss)
– as % of revenue
Finance income
Finance costs
Share of profit (loss) of equity-accounted investees, net of tax
Profit (loss) before tax
Income taxes
7
11
13
13
19.1
18.1 %
174,810
(81,768)
93,042
53.2 %
1,102
(36,290)
(26,440)
(35,770)
(4,356)
(219.0 %)
(2.5 %)
591
(2,309)
(583)
(6,657)
270
Profit (loss) for the period, attributable to owners of Sensirion Holding AG
(6,387)
(733.8 %)
– as % of revenue
Earnings per registered share
Basic earnings per registered share (in CHF)
Diluted earnings per registered share (in CHF)
Earnings before interest, tax, depreciation, and amortization (EBITDA)
Earnings before interest, tax, depreciation, and amortization (EBITDA)
– as % of revenue
Adjusted earnings before interest, tax, depreciation, and amortization
(Adjusted EBITDA)
– as % of revenue
(3.7 %)
(0.45)
(0.45)
9,232
5.3 %
27,823
15.9 %
14
14
12
12
The notes on pages 75 to 118 are an integrated part of these consolidated financial statements.
148,003
(62,965)
85,038
57.5 %
–
(39,535)
(22,317)
(19,525)
3,661
2.5 %
1,562
(2,801)
(236)
2,186
(2,952)
(766)
(0.5 %)
(0.07)
(0.07)
16,483
11.1 %
26,202
17.7 %
70
Sensirion Annual Report 2018Financial Report Consolidated Statement of Profit or Loss and
Other Comprehensive Income (OCI)
In thousands of CHF, for the year ended 31 December
Note
2018
in %
2017
Profit (loss) for the period, attributable to owners of Sensirion Holding AG
(6,387)
(733.8 %)
Remeasurements of defined benefit obligation
Equity investment at FVOCI – net change in fair value
Related tax
Items that will not be reclassified to profit or loss
Foreign operations – foreign currency translation differences
Available-for-sale financial assets – net change in fair value
Related tax
Items that are or may be reclassified to profit or loss
Other comprehensive income for the period, net of tax
Total comprehensive income for the period, attributable to owners
of Sensirion Holding AG
16.2
27.2
19.3
19.3
27.2
19.3
19.3
2,492
(346)
(429)
1,717
(3,122)
–
–
(3,122)
(1,405)
(766)
1,198
–
(240)
958
4,067
1,082
(216)
4,933
5,891
(7,792)
(252.0 %)
5,125
The notes on pages 75 to 118 are an integrated part of these consolidated financial statements.
71
Sensirion Annual Report 2018Financial Report Consolidated Statement of Financial Position
In thousands of CHF
Assets
Cash and cash equivalents
Trade receivables
Prepaid expenses
Other receivables
Inventories
Assets held for sale
Total current assets
Property, plant, and equipment
Right-of-use assets
Financial assets
Equity-accounted investees
Intangible assets
Goodwill*
Total non-current assets
Total assets
Liabilities
Trade payables
Accrued expenses
Employee benefits
Lease liabilities
Other liabilities
Loans and borrowings
Total current liabilities
Employee benefits
Lease liabilities
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Equity
Share capital
Capital reserve
Treasury shares reserve
Translation reserve
Revaluation reserve
Retained earnings
Note 31 December
2018
in %
restated*
31 December
2017
in %
53,938
22,140
2,245
3,843
30,176
–
112,342
64,840
11,066
3,445
3,214
14,271
5,737
23
23
22
11
20
18
27.2
21.1
21.2
52.3 %
9,393
21,135
1,513
6,936
25,792
6,511
71,280
66,736
11,067
3,328
3,796
13,913
5,936
40.5 %
102,573
47.7 %
214,915
100.0 %
104,776
59.5 %
176,056
100.0 %
15
26.1/27.1
26
15
26.1/27.1
19.4
8,802
4,320
4,393
1,387
2,198
–
21,100
21,316
9,978
2,088
33,382
54,482
1,514
144,530
(5,137)
1,022
1,856
16,648
3,014
2,404
3,464
1,185
1,820
67,560
79,447
23,411
9,993
2,235
45.1 %
9.8 %
15.6 %
25.4 %
35,639
115,086
20.3 %
65 .4%
1,246
40,017
(7,636)
4,144
2,133
21,066
60,970
34.6 %
176,056
100.0 %
Total equity, attributable to owners of Sensirion Holding AG
24
160,433
74.6 %
Total liabilities and equity
* Goodwill was revised, see note 8.
214,915
100.0 %
The notes on pages 75 to 118 are an integrated part of these consolidated financial statements.
72
Sensirion Annual Report 2018Financial Report Consolidated Statement of Changes in Equity
Attributable to owners of Sensirion Holding AG
Note
Share
capital*
Capital
reserve
Treasury
shares
reserve
Translation
reserve
Reval-
uation
reserve
Retained
earnings
Total equity
In thousands of CHF
Balance at 1 January 2017
Profit (loss) for the period
Other comprehensive income for the period
19.3
Total comprehensive income for the period
Exchange of treasury participation certificates against
ordinary shares
Repurchase of treasury shares and participation certificates
Sale of treasury shares and participation certificates
Effect of modification of cash-settled into equity-settled
share-based payment plan
17.1
Equity-settled share-based payment transactions
Transactions with owners – contributions and
distributions
1,246
14,503
(2,016)
77 1,267 20,874
35,951
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(766)
(766)
4,067
4,067
866
866
958
192
5,891
5,125
5,326
(5,326)
–
(1,681)
(1,387)
1,387
19,422
2,153
–
–
25,514
(5,620)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1,681)
–
19,422
2,153
–
19,894
Balance at 31 December 2017 (as reported)
1,246
40,017
(7,636)
4,144 2,133 21,066
60,970
Adjustment of initial application of IFRS 9, net of tax
2
–
–
–
–
–
(26)
(26)
Adjusted balance at 1 January 2018
1,246 40,017
(7,636)
4,144 2,133 21,040
60,944
Profit (loss) for the period
Other comprehensive income for the period
19.3
Total comprehensive income for the period
Capital increases
–
–
–
–
–
–
268
91,204
–
–
–
–
Repurchase of treasury shares and participation certificates
Sale of treasury shares and participation certificates
–
–
(66)
–
(2,508)
2,565
Equity-settled share-based payment transactions
17.1
– 15,817
–
–
– (6,387)
(6,387)
(3,122)
(277)
1,995
(1,405)
(3,122) (277) (4,392)
(7,792)
–
–
–
–
–
–
–
–
–
–
–
–
91,472
(66)
57
15,817
Transactions with owners – contributions and
distributions
268 104,513
2,499
–
–
–
107,280
Balance at 31 December 2018
1,514 144,530
(5,137)
1,022 1,856 16,648
160,433
* Unification of shares, see note 24.1
The notes on pages 75 to 118 are an integrated part of these consolidated financial statements.
73
Sensirion Annual Report 2018Financial Report Consolidated Statement of Cash Flows
In thousands of CHF, for the year ended 31 December
Note
2018
restated*
2017
Cash flows from operating activities
Profit (loss) for the period
Adjustments for:
– Depreciation, amortization, and impairment
– Loss (gain) on sale of intangible assets, property, plant, and equipment and asset held for sale
– Other non-cash expense (income)
– Net finance costs
– Share of loss (profit) of equity-accounted investees, net of tax
– Equity-settled share-based payment transactions
– Tax expense (income)
Changes in:
– Trade and other receivables
– Prepaid expenses
– Inventories
– Trade and other payables
– Accrued expenses
– Employee benefits
Interest and bank charges paid
Income taxes paid
Short-term lease payments and payments for leases of low-value assets not included in the
measurement of the lease liability
Net cash from operating activities
Cash flows from investing activities
Acquisition of property, plant, and equipment
Proceeds from sale of property, plant, and equipment
Repayment of contingent consideration
Acquisition of business, net of cash acquired
Acquisition of financial assets
Acquisition of equity-accounted investees
Acquisition of intangible assets
Proceeds from sale of asset held for sale
Development expenditure
Net cash from investing activities
Cash flows from financing activities
Payment of lease liabilities
Proceeds from issue of share capital
Transaction costs related to issue of share capital
Proceeds from loans and borrowings
Repayment of loans and borrowings
Repurchase of treasury shares and participation certificates
Net cash from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at 1 January
Effect of movements in exchange rates on cash held
Cash and cash equivalents at 31 December
* Goodwill was revised, see note 8.
The notes on pages 75 to 118 are an integral part of these consolidated financial statements.
74
18/20/21
13
19
26
18
20
8
8
21
11
21
18
26
26
(6,387)
(766)
15,354
(887)
(687)
1,718
583
15,369
(270)
(1,711)
(732)
(4,384)
6,166
1,916
1,166
(488)
(132)
19,015
(137)
121
1,239
236
2,153
2,952
(11,275)
(1)
(6,176)
(149)
584
3,946
(629)
(345)
(158)
26,436
(205)
10,563
(9,410)
613
3,724
–
(463)
–
(1,973)
6,591
(2,754)
(3,672)
(1,910)
93,172
(1,700)
–
(11,018)
296
–
(31,908)
(162)
(2,500)
(2,476)
–
(3,250)
(51,018)
(1,311)
–
–
38,914
(67,560) –
(1,681)
35,922
(4,533)
13,976
(50)
9,393
(66)
21,936
44,700
9,393
(155)
53,938
Sensirion Annual Report 2018Financial Report Notes to the Consolidated Financial Statements
1
Reporting Entity
Sensirion Holding AG (the “Company”) is domiciled in Switzerland. The Company’s registered office is at Laubisrütistrasse 50, 8712
Stäfa. These consolidated financial statements comprise the Company, its subsidiaries (collectively the “Group” and individually “Group
companies”), and their investments in equity-accounted investees.
Sensirion is one of the world’s leading manufacturers of digital microsensors and -systems. The product range includes gas and liquid
flow sensors, differential pressure sensors, as well as environmental sensors for the measurement of humidity and temperature, volatile
organic compounds (VOCs), carbon dioxide (CO2), and particulate matter (PM2.5). Using Sensirion’s microsensor solutions, OEM cus-
tomers benefit from the proven CMOSens® Technology.
2 Basis of Accounting
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The
consolidated financial statements were authorized for issue by the Board of Directors on 6 March 2019.
Details of the Group’s accounting policies are included in Notes 3 to 6.
This is the first set of the Group’s annual financial statements in which IFRS 9 Financial Instruments has been applied. The Group ini-
tially adopted the new standard from 1 January 2018. The new classification requirements included in IFRS 9 have not had a signi-
ficant impact on the Group’s accounting for financial instruments. Please refer to Note 5.9.2 for information about the new classification
and measurement requirements. Under the new standard, the Group has designated an equity investment which was classified as
available-for-sale under IAS 39 as measured at FVOCI. Consequently, all fair value gains and losses are reported in OCI, no impairment
losses are recognized in profit or loss and no gains or losses will be reclassified to profit or loss on disposal. The carrying amount at
1 January 2018 of this financial asset remained unchanged compared to IAS 39. Furthermore, IFRS 9 replaced the “incurred loss”
impairment model in IAS 39 with a forward-looking “expected credit loss” (ECL) model. The new impairment model applies to financial
assets measured at amortized cost. Please refer to Note 5.10.1 for information about the new impairment requirements. The corre-
sponding decrease in retained earnings at 1 January 2018 amounted to CHF 26 thousand, net of tax.
A number of other new requirements are effective from 1 January 2018 but they do not have a material effect on the Group’s financial
statements.
2.1 Basis of Measurement
The consolidated financial statements have been prepared on the historical cost basis except for the following items, which are mea-
sured on an alternative basis on each reporting date.
Items
Available-for-sale financial asset (IAS 39)
Equity instruments at FVOCI (IFRS 9)
Net defined benefit liability
Measurement bases
Fair value
Fair value
Fair value of plan assets less the present value of the defined
benefit obligation
Cash-settled share-based payment liabilities
Contingent consideration assumed in a business combination
Fair value
Fair value
75
Sensirion Annual Report 2018Financial Report
2.2 Functional and Presentation Currency
These consolidated financial statements are presented in Swiss Francs (CHF), which is the Company’s functional currency. All amounts
have been rounded to the nearest thousand, unless otherwise indicated.
3
Use of Judgments and Estimates
In preparing these consolidated financial statements, management has made judgments, estimates, and assumptions that affect the
application of the Group’s accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may
differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.
Judgments
3.1
Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in
the consolidated financial statements is included in the following notes:
§ Note 21 – Capitalization of development costs.
§ Note 22 – Inventories.
3.2 Assumptions and Estimation Uncertainties
Information about assumptions and estimation uncertainties at 31 December 2018 that have a significant risk of resulting in a material
adjustment to the carrying amounts of assets and liabilities within the year ending 31 December 2019 is included in the following Notes:
§ Note 16 – Measurement of defined benefit obligations: key actuarial assumptions;
§ Note 21 – Impairment test: key assumptions underlying recoverable amounts; and
§ Note 27 – Determining the fair value of financial instruments on the basis of significant unobservable inputs.
3.3 Measurement of Fair Values
A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial
assets and liabilities.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are
categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
§ Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
§ Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices).
§ Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value
measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the
entire measurement.
The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change
has occurred.
76
Sensirion Annual Report 2018Financial Report Further information about the assumptions made in measuring fair values is included in the following Notes:
§ Note 17 – Share-based payment arrangement; and
§ Note 27 – Financial instruments.
4
Basis of Consolidation
4.1 Business Combinations
The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consider-
ation transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that
arises is tested annually for impairment. Any gain on a bargain purchase is recognized in profit or loss immediately. Transaction costs
are expensed as incurred, except if related to the issue of debt or equity securities.
4.2 Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements
of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which
control ceases.
When the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, as well as any related
non-controlling interests and other components of equity. Any resulting gain or loss is recognized in profit or loss. Any interest retained
in the former subsidiary is measured at fair value when control is lost.
The Company has direct or indirect control over the following subsidiaries.
For the year ended 31 December
2018
2017
Company, principal place of business
Sensirion AG, Stäfa (Switzerland)
Sensirion China Co. Ltd., Shenzhen (China)
Sensirion Inc., Chicago (USA)
Sensirion Japan Co. Ltd., Tokyo (Japan)
Sensirion Korea Co. Ltd., Anyang-Si (South Korea)
Sensirion Taiwan Co. Ltd., Hsinchu (Taiwan)
Sensirion Automotive Solutions AG, Stäfa (Switzerland)
Sensirion Automotive Solutions Inc., Detroit (USA)
Share capital
in %
Share capital
in %
CHF
RMB
USD
JPY
KRW
TWD
CHF
USD
2,000,000
1,260,000
660,000
25,000,000
100,000,000
25,000,000
100,000
250,000
100
100
100
100
100
100
100
100
100
CHF
RMB
USD
JPY
2,000,000
1,260,000
660,000
25,000,000
KRW
100,000,000
TWD
25,000,000
CHF
USD
100,000
250,000
KRW 15,000,000,000
Sensirion Automotive Solutions Korea Co., Ltd., Seoul (South Korea)
KRW 15,000,000,000
Sensirion Automotive Solutions (Shanghai) Co., Ltd.,
Shanghai (China)
IRsweep AG, Stäfa (Switzerland)
RMB
CHF
8,504,000
100
RMB
8,504,000
166,667
33
CHF
166,667
100
100
100
100
100
100
100
100
100
100
33
77
Sensirion Annual Report 2018Financial Report 4.3
The Group’s interests in equity-accounted investees comprise interests in associates.
Interests in Equity-Accounted Investees
Associates are those entities in which the Group has significant influence, but not control or joint control over their financial and oper-
ating policies.
Interests in associates are accounted for using the equity method. They are initially recognized at cost, which includes transaction
costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or loss and OCI of
equity-accounted investees, until the date on which significant influence or joint control ceases.
4.4 Transactions Eliminated on Consolidation
Intra-group balances and transactions, and any income and expenses arising from intra-group transactions, are eliminated. Unrealized
gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group’s
interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no
evidence of impairment.
4.5 Foreign Currency
4.5.1 Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Group companies at the exchange rates at
the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the
reporting date. Foreign currency differences are generally recognized in profit or loss. Non-monetary items that are measured based
on historical cost in a foreign currency are not translated.
4.5.2 Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into
CHF at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into CHF at the exchange
rates at the dates of the transactions. Foreign currency differences are recognized in OCI and accumulated in the translation reserve.
When a foreign operation is disposed of in its entirety or partially such that control or significant influence is lost, the cumulative amount
in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal.
78
Sensirion Annual Report 2018Financial Report
5
Significant Accounting Policies
5.1 Revenue
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of
third parties. The Group recognizes revenue when it transfers control over a product to a customer. Our contracts generally include a
standard warranty clause to guarantee that the products comply with agreed specifications.
Products
Nature, timing of satisfaction of performance obligations, and significant payment terms
Sensors
The Group sells its standardized sensors generally via purchase orders to customers (i.e. end customers and distributors)
and recognizes revenue when the sensor is delivered to the customer. This generally occurs in accordance with the
applicable Incoterms which are usually FCA (Free carrier named place of delivery) or DAP (Delivered at place).
Variable consideration in contracts with customers such as early payment discounts are generally not constrained as the
Group has experience with these type of contracts and the uncertainty about the amount of consideration is expected to
be resolved over a short period of time. Customers usually pay within 30 to 60 days from the delivery of the products.
5.2 Employee Benefits
5.2.1 Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be
paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.
5.2.2 Cash-settled share-based payment transactions
The fair value of the amount payable to employees is recognized as an expense with a corresponding increase in liabilities. The liability
is remeasured to fair value at each reporting date and at settlement date. Any changes in the liability is recognized as part of finance
income or finance cost.
5.2.3 Equity-settled share-based payment transactions
The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an
expense, with a corresponding increase in equity, over the vesting period of the awards, if any. The amount recognized as an expense
is adjusted to reflect the number of awards for which the related service condition, if any, is expected to be met, such that the amount
ultimately recognized is based on the number of awards that meet the related service condition at the vesting date.
5.2.4 Share-based payment transactions with settlement choice for the counterparty
When the counterparty has a choice of settlement in a share-based payment transaction, the Group grants a compound financial
instrument which includes a debt component (i.e. the counterparty’s right to demand payment in cash) and an equity component (i.e.
the counterparty’s right to demand settlement in equity instruments rather than in cash). The Group first measures the fair value of the
debt component and then measures the fair value of the equity component. The fair value of the debt component is recognized over the
vesting period, if any, as employee benefit expenses with a corresponding entry to cash-settled share-based payment liabilities,
whereas the equity component is recognized as employee benefit expenses with a corresponding entry to capital reserves. At the date
of settlement, the Group remeasures the cash-settled share-based payment to its fair value. If the counterparty chooses to receive
equity instruments, the remeasured liability is transferred directly to capital reserves.
5.2.5 Defined contribution plans
Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are
recognized as an asset to the extent that a cash refund or a reduction in future payments is available.
79
Sensirion Annual Report 2018Financial Report 5.2.6 Defined benefit plans
The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future
benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any
plan assets.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses and the return on plan assets (excluding
interest), are recognized immediately in OCI. The Group determines the net interest expense on the net defined benefit liability for the
period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net
defined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions
and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.
The Group considers risk-sharing features when calculating the defined benefit obligation for the Swiss pension plan. These features
reflect the actual limit of the contributions that the Group is required to pay as well as the employees’ share of the cost of the pension
plan. The application of risk sharing is based on the formal terms of the Swiss pension plan which comprise the plan rules as well as
the relevant laws, ordinances, and directives concerning the occupational benefits plans, in particular the provisions contained therein
concerning funding and measures to be taken to eliminate pension fund deficits.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the
gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a
defined benefit plan when the settlement occurs.
5.2.7 Other long-term employee benefits
The Group’s net obligation in respect of other long-term employee benefits is the amount of future benefit that employees have earned
in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements
are recognized in profit or loss in the period in which they arise.
5.3 Finance Income and Finance Costs
The Group’s finance income and finance costs include:
§ interest income;
§ interest expense;
§ net interest costs on the defined benefit liability and other long-term employee benefits;
§ the foreign currency gain or loss on financial assets and financial liabilities; and
§ net remeasurement gains and losses on cash-settled share-based payment liabilities.
Interest income or expense is recognized using the effective interest method.
Income tax
5.4
Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to a business
combination, or items recognized directly in equity or in OCI.
5.4.1 Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date.
Current tax also includes any tax arising from dividends. Current tax assets and liabilities are offset only if certain criteria are met.
80
Sensirion Annual Report 2018Financial Report 5.4.2 Deferred tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for:
§ temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting nor taxable profit or loss;
§ temporary differences related to investments in subsidiaries and associates to the extent that the Group is able to control the timing
of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
§ taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognized for unused tax losses, unused tax credits, and deductible temporary differences to the extent that
it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions
are reversed when the probability of future taxable profits improves.
Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that
future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates
enacted or substantively enacted at the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects, at the
reporting date, to recover or settle the carrying amount of its assets and liabilities. For this purpose, the carrying amount of investment
property measured at fair value is presumed to be recovered through sale, and the Group has not rebutted this presumption.
Deferred tax assets and liabilities are offset only if certain criteria are met.
Inventories
5.5
Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted average method.
In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on
normal operating capacity.
5.6 Property, Plant, and Equipment
5.6.1 Recognition and measurement
Items of property, plant, and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant, and equipment have different useful lives, then they are accounted for as separate items
(major components) of property, plant, and equipment.
Any gain or loss on disposal of an item of property, plant, and equipment is recognized in profit or loss.
5.6.2 Subsequent expenditures
Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow
to the Group.
5.6.3 Depreciation
Depreciation is calculated to write off the cost of items of property, plant, and equipment less their estimated residual values using the
straight-line method over their estimated useful lives, and is generally recognized in profit or loss. Land is not depreciated.
81
Sensirion Annual Report 2018Financial Report
The estimated useful lives of property, plant, and equipment for current and comparative periods are as follows.
Class
Land
Buildings
Production facilities
Other property, plant, and equipment
Years
No depreciation
20 -40
2 - 8
4 -5
Depreciation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.
Intangible Assets and Goodwill
5.7
5.7.1 Recognition and measurement
Goodwill
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses.
Research and Development
Expenditure on research activities is recognized in profit or loss as incurred.
Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and
commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete devel-
opment and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Directly attributable borrowing costs are
capitalized as part of the respective development costs. Subsequent to initial recognition, development expenditure is measured at cost
less accumulated amortization and any accumulated impairment losses.
Patents and trademarks
Patents, trademarks, and capitalized customer relationships that are acquired by the Group have finite useful lives and are measured
at cost less accumulated amortization and any accumulated impairment losses.
5.7.2 Subsequent expenditures
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it
relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as
incurred.
5.7.3 Amortization
Amortization is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method
over their estimated useful lives, and is generally recognized in profit or loss. Goodwill is not amortized.
The estimated useful lives for current and comparative periods are as follows.
Class
Patents and trademarks
Development costs
Software
Other intangible assets
Years
10
5
4
4 - 10
Amortization methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.
82
Sensirion Annual Report 2018Financial Report 5.8 Assets Held for Sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held for sale if it is highly probable that they
will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any
impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis,
except that no loss is allocated to inventories, financial assets, or deferred tax assets, which continue to be measured in accordance
with the Group’s other accounting policies. Impairment losses on initial classification as held for sale or held for distribution and sub-
sequent gains and losses on remeasurement are recognized in profit or loss.
Once classified as held for sale, intangible assets and property, plant, and equipment are no longer amortized or depreciated, and any
equity-accounted investee is no longer equity accounted.
5.9 Financial Instruments
5.9.1 Recognition and initial measurement
Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recog-
nized when the Group becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at
fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable
without a significant financing component is initially measured at the transaction price.
5.9.2 Financial assets – Classification and subsequent measurement
Policy applicable from 1 January 2018
The Group classifies non-derivative financial assets into the following categories: amortized cost and FVOCI – equity investment.
A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold assets to collect contrac-
tual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group irrevocably elects to present subsequent changes in
the investment’s fair value in OCI.
Financial assets at amortized cost
Equity investments at FVOCI
These assets are subsequently measured at amortized cost using the effective interest
method. The amortized cost includes any loss allowances for expected credit losses.
Interest income, foreign exchange gains and losses, and impairment are recognized in
profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
These assets are subsequently measured at fair value. Dividends are recognized as
income in profit or loss unless the dividend clearly represents a recovery of part of the
cost of the investment. Other net gains and losses are recognized in OCI and are never
reclassified to profit or loss.
5.9.3 Financial liabilities
Financial liabilities are classified as measured at amortized. These financial liabilities are subsequently measured at amortized cost
using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain
or loss on derecognition is also recognized in profit or loss.
83
Sensirion Annual Report 2018Financial Report 5.9.4 Derecognition
The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers
the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the
financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership
and it does not retain control of the financial asset.
The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire.
5.9.5 Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only
when, the Group has a legal right to offset the amounts and intends either to settle them on a net basis or to realize the asset and settle
the liability simultaneously.
5.10 Impairment
5.10.1 Non-derivative financial assets
Policy applicable from 1 January 2018
Financial instruments
The Group recognizes loss allowances for ECLs on financial assets measured at amortized cost.
Loss allowances for trade receivables are always measured at an amount equal to lifetime ECLs. Lifetime ECLs are the ECLs that result
from all possible default events over the expected life of a financial instrument.
Loss allowances for other financial assets are measured at an amount equal to lifetime ECLs, unless the credit risk (i.e. the risk of
default occurring over the expected life of the financial asset) has not increased significantly since initial recognition.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating
ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This
includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit
assessment and including forward-looking information. The Group formulates a “base-case” view of the future direction of relevant
economic variables as well as a representative range of other possible forecast scenarios. This process involves developing additional
economic scenarios and considering the relative probabilities of each outcome.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.
The Group considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Group in full,
without recourse by the Group to actions such as realizing security (if any is held), or the financial asset is more than 90 days past due.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the
difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive).
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset
is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset
have occurred.
Impairment losses for trade receivables are recognized in “Selling and distribution expenses” in the consolidated income statement.
84
Sensirion Annual Report 2018Financial Report
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.
Write-off
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial
asset in its entirety or a portion thereof. For individual customers, the Group has a policy of writing off the gross carrying amount when
the financial asset is 180 days past due based on historical experience of recoveries of similar assets. The Group expects no significant
recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in
order to comply with the Group’s procedures for recovery of amounts due.
5.10.2 Non-financial assets
At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax
assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount
is estimated. Goodwill is tested annually for impairment.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use
that are largely independent of the cash inflows of other assets or cash-generating units (CGUs). Goodwill arising from a business
combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposal. Value in use is
based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset or CGU.
An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to
the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if
no impairment loss had been recognized.
5.11 Share Capital
5.11.1 Costs of an equity transaction
Incremental costs directly attributable to the issue or buy-back of shares, net of any tax effects, are recognized as a deduction from equity.
5.11.2 Repurchase and reissue of shares (treasury shares)
When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs,
net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are pre-
sented in the treasury shares reserve. When treasury shares are sold or reissued subsequently, the amount received is recognized as
an increase in equity and the resulting surplus or deficit on the transaction is presented within the capital reserve.
85
Sensirion Annual Report 2018Financial Report
5.12 Leases Where the Group Is a Lessee
Where the Group is a lessee, leases are recognized as a right-of-use asset and corresponding liability at the date of which the leased
asset is available for use by the Group.
Since the interest rate implicit in the leases cannot be readily determined, the Group initially measures the lease liability at the present
value of the future lease payments using the incremental borrowing rate at the commencement date as the relevant discount rate for
the identified lease contracts.
At the commencement date, the Group measures the right-of-use asset at cost which includes:
§ the amount of the initial measurement of the lease liability;
§ any lease payments made at or before the commencement date, less any lease incentives received;
§ any initial direct costs incurred; and
§ an estimate of costs to be incurred in dismantling and removing the underlying asset, restoring the site on which it is located, or
restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to
produce inventories.
In terms of subsequent measurement, the following applies:
§ right-of-use asset: the right of use asset is measured at cost less any depreciation and any accumulated impairment losses, and
adjusted for any remeasurement of the lease liability.
§ lease liability: the lease liability is measured at amortized cost using the effective interest method. The carrying amount of the lease
liability is subsequently increased to reflect the interest on the lease liability and reduced to reflect the lease payments made (and
potentially remeasured to reflect any reassessment or lease modifications, or to reflect revised in-substance fixed lease payments).
The Group depreciates right-of-use assets from the commencement date of the lease to whichever date is earlier, either the end of the
useful life of the right-of-use asset or the end of the lease term. If ownership of the underlying asset is transferred to the Group, or if
the Group is reasonably certain to exercise a purchase option, then the depreciation period runs to the end of the useful life of the
underlying asset.
Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period
so as to produce a constant periodic rate of interest on the remaining balance of the liability or each period.
5.13 Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market partici-
pants at the measurement date in the principal or, in its absence, the most advantageous market to which the Group has access at that date.
The fair value of a liability reflects its non-performance risk.
A number of the Group’s accounting policies and disclosures require the determination of fair value (see Note 3.3).
When one is available, the Group measures the fair value of an instrument using the quoted price in an active market for that instrument.
If there is no quoted price in an active market, then the Group uses valuation techniques that maximize the use of relevant observable inputs
and minimize the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would
take into account when pricing a transaction.
The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price – i.e. the fair value of the
consideration given or received.
86
Sensirion Annual Report 2018Financial Report
6
Standards, Interpretations, and Amendments Issued but Not yet Effective
The following new and revised standards and interpretations that may be relevant for the Group have been issued, but are not yet
effective. They have not been applied early in these consolidated financial statements. Unless indicated otherwise, a preliminary
assessment has been conducted by Sensirion management and the expected impact of each new or amended standard and interpre-
tation is presented below.
Effective date
Planned application by Sensirion
Holding AG in reporting year
New standards or interpretations
IFRIC 23 Uncertainty over Income Tax Treatments
1 January 2019
Reporting year 2019
Revision or amendments of standards and interpretations
Annual Improvements to IFRS Standards 2015-2017 Cycle
Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28)
Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)
Amendments to References to the Conceptual Framework in IFRS Standards
Definition of a Business (Amendments to IFRS 3)
Definition of Material (Amendments to IAS 1 and IAS 6)
1 January 2019
1 January 2019
1 January 2019
1 January 2020
1 January 2020
1 January 2020
Reporting year 2019
Reporting year 2019
Reporting year 2019
Reporting year 2020
Reporting year 2020
Reporting year 2020
Based on a preliminary assessment, the new requirements will not have a significant impact on the consolidated financial statements.
For IFRIC 23, the analysis has not yet been finalized.
7
Segment Reporting and Disaggregation of Revenue
7.1 Basis for Segmentation
The Group operates in one industry segment which encompasses the development, production, sales, and servicing of sensor systems,
modules, and components. The allocation of resources and performance assessment is made at Group level. The Group’s organization
is not divided into business units, neither in the management structure nor in the internal reporting system.
7.2 Entity-Wide Disclosures and Disaggregation of Revenue
In thousands of CHF, for the year ended 31 December, and as % of revenue
2018
2017
Revenue – Geographic information by countries
Switzerland
USA
Germany
South Korea
China
Australia
Other foreign countries
Total
3,782
2.2%
3,492
2.4%
31,977
18.3%
26,596
18.0%
30,895
17.7%
29,211
19.7%
22,366
12.8%
14,899
10.1%
21,352
12.2%
15,752
10.6%
18,058
10.3%
16,512
11.1%
46,380
26.5%
41,541
28.1%
174,810 100.0 % 148,003 100.0 %
87
Sensirion Annual Report 2018Financial Report In thousands of CHF, for the year ended 31 December, and as % of revenue
2018
2017
Revenue – Geographic information by region
APAC
EMEA
Americas
Total
In thousands of CHF
Non-current assets – Geographic information
Switzerland
South Korea
China
USA
Other foreign countries
Total
81,313
46.5%
68,718
46.4%
56,266
32.2%
46,738
31.6%
37,231
21.3%
32,547
22.0%
174,810 100.0% 148,003 100.0%
31 Dec
2018
31 Dec
2017
78,372
79.1%
82,050
80.9%
17,199
17.3%
18,081
17.8%
3,189
359
3.2%
0.4%
662
654
0.7%
0.6%
9 <0.1%
1
<0.1%
99,128 100.0% 101,448 100.0%
The geographic information on revenues in the table above is based on the customers’ location.
Revenue from one customer of the Group represented approximately CHF 17,862 thousand (2017: CHF 16,624 thousand) of the Group’s revenue.
As an additional voluntary information, revenue is allocated to end markets as follows.
In thousands of CHF, for the year ended 31 December, and as % of revenue
2018
2017
Revenue – per end market
Automotive
Medical
Industrial
Consumer
Total
8 Business Combination
53,921
30.8%
41,064
27.7%
38,555
22.1%
33,398
22.6%
68,626
39.3%
60,283
40.7%
13,708
7.8%
13,258
9.0%
174,810 100.0% 148,003 100.0%
In September 2017, the Group acquired the automotive business of Auto Industrial Co., Ltd. (“AIC”), a leading South Korean supplier of
automotive sensor modules, to strengthen the Group’s competitive position as a sensor module manufacturer and further expand its
global geographic footprint.
The provisional consideration transferred upon the acquisition of the automotive business of Auto Industrial Co., Ltd. contained contin-
gent consideration which was subject to the settlement of customary acquisition conditions. As a result of obtaining additional informa-
tion up to September 2018 about facts and circumstances that existed at the date of acquisition, the Group received an amount of
KRW 558 million (equal to CHF 482 thousand at the date of acquisition and CHF 507 thousand at the date of cash flow) from the escrow
account which reduces the provisional consideration transferred. Consequently and in accordance with the provisions on measure-
ment-period adjustments in IFRS 3, the goodwill resulting from the business combination was adjusted retrospectively to CHF 10,731
88
Sensirion Annual Report 2018Financial Report
thousand instead of CHF 11,213 thousand (before impairment loss, see Note 21); the consolidated statement of financial position at
31 December 2017 was restated for this effect.
Additionally, the Group received an amount of KRW 3,541 million (equal to CHF 3,053 thousand at the date of acquisition,
CHF 3,281 thousand at 31 December 2017, and CHF 3,217 thousand at the date of cash flow), which was already included in other
receivables at 31 December 2017 (see Note 23).
As a result of the above – at the date of acquisition – the final acquisition accounting is presented as follows.
In thousands of CHF
Consideration transferred
Cash paid
Thereof included in other receivables
Total consideration transferred
Fair value of assets (liabilities)
Cash and cash equivalents
Trade and other receivables
Inventories
Asset held for sale
Property, plant, and equipment
Intangible assets
Trade and other payables
Employee benefits
Deferred tax liabilities
Total net identifiable assets
Goodwill before impairment loss (see Note 21)
Cash flow from acquisition
Cash paid
Acquired cash and cash equivalents
Net cash outflow
32,588
(3,535)
29,053
165
1,137
3,142
6,057
7,940
2,659
(1,123)
(1,373)
(282)
18,322
10,731
32,588
(165)
32,423
Acquisition-related costs
The Group incurred acquisition-related costs of CHF 1,876 thousand in 2017. These costs were included in “Administrative expenses”.
Reason for goodwill and tax deduction
The goodwill was attributable mainly to the skills and technical talent of the acquired workforce and the synergies expected to be
achieved from integrating the company into the Group’s existing sensor business. None of the goodwill recognized was expected to be
deductible for tax purposes.
For the four months ended 31 December 2017, the acquired business contributed CHF 5,934 thousand revenue and CHF 1,371 thou-
sand loss to the Group. Disclosure of the revenue and loss of the combined entity for 2017 as though the acquisition date for the
acquisition had been as of 1 January 2017 cannot be provided practicably as there was no information available to the management
for the remainder of the year due to the nature of the transaction.
89
Sensirion Annual Report 2018Financial Report Goodwill recognized in connection with this transaction amounted to CHF 10,731 thousand. Subsequently, the Group recognized a
goodwill impairment loss in the amount of CHF 5,600 thousand (see Note 21).
Subsequent to the business combination, the former AIC subsidiaries Auto Electronic (Shanghai) Co., Ltd. and AIC USA Inc. were
renamed to Sensirion Automotive Solutions (Shanghai) Co., Ltd. and Sensirion Automotive Solutions Inc. In addition, the Group estab-
lished Sensirion Automotive Solutions Korea Co., Ltd. for the transfer of the other assets acquired in the business combination.
9
Expenses by Nature
In thousands of CHF
Changes in inventories
Raw materials and consumables
Employee benefits
Depreciation, amortization, and impairment loss
Other
Note
2018
2017
4,384
9,318
(47,009)
(42,867)
10
(101,296)
(73,819)
18/20/21
(15,354)
(19,014)
(20,933)
(17,960)
Total cost of sales, research, and development expenses, selling and distribution
expenses, and administrative expenses
(180,268)
(144,342)
10 Employee Benefit Expenses / Personnel Costs
In thousands of CHF
Note
2018
2017
Wages and salaries
Social security contributions
Contributions to defined contribution plans
Post-employment defined benefit plans
Other long-term employee benefits
Share-based payment
Other employee benefit expenses
Total
11 Other Income
16.2
68,616
7,054
1,048
3,186
330
15,369
5,693
60,317
2,994
515
4,660
405
2,153
2,775
101,296
73,819
Other income in 2018 relates to gains on sale of fully depreciated equipment and on sale of assets held for sale. In terms of assets
held for sale, management committed to a plan to sell a building and land which were acquired in the business combination in 2017.
The sale was effective 27 December 2018, and a respective gain of CHF 280 thousand was recognized.
90
Sensirion Annual Report 2018Financial Report
12 Adjusted EBITDA
Management uses EBITDA and Adjusted EBITDA as key performance indicators because it believes they provide a more accurate
assessment of the Group’s business operations than the most closely comparable IFRS measure, profit (loss) before tax, and manage-
ment believes that they and similar measures are frequently used by securities analysts, investors, and other interested parties in
evaluating companies in the Group’s industry.
Management defines EBITDA as profit (loss) for the period before net interest expenses, income taxes, depreciation, and amortization.
We define Adjusted EBITDA as EBITDA, adjusted for net finance costs excluding net interest expenses, share of loss (profit) of equi-
ty-accounted investees, net of tax, impairment loss, and certain non-recurring items that management believes are not indicative of
operational performance.
These non-recurring items are expenses from the IPO Loyalty Share Program, including social security expenses; expenses on social
security relating to the gain in excess of formula value which were incurred in the course of the unification of the share capital prior to
the initial public offering; other costs related to the initial public offering; past service credit on the defined benefit obligation; and costs
(income) related to acquisitions.
In thousands of CHF, for the year ended 31 December
Note
2018
2017
Reconciliation of profit (loss) to Adjusted EBITDA for the period
Profit (loss) for the period
Net interest expenses
Income taxes
Depreciation
Amortization
Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Adjusted for:
– Net finance cost excluding net interest expenses
– Share of loss (profit) of equity-accounted investees, net of tax
– Past service credit on defined benefit obligation (1e Plan)
– Impairment loss on goodwill
– IPO Loyalty Share Program, including social security expenses
– Expenses on social security relating to the gain in excess of formula value
– Costs related to initial public offering
– Acquisition-related costs (income)
(6,387)
535
(270)
(766)
882
2,952
13
19
18/20
11,578
11,056
21
3,776
9,232
2,359
16,483
16.2
21
17.1
1,183
583
(1,971)
357
236
–
–
5,600
16,157
697
3,044
(1,102)
–
–
1,650
1,876
Adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA)
27,823
26,202
91
Sensirion Annual Report 2018Financial Report 13 Net Finance Costs
In thousands of CHF
Finance income
Net foreign exchange gains
Net remeasurement gains on cash-settled share-based payment liabilities
Other financial income
Finance income
In thousands of CHF
Finance costs
Interest expense on loans and borrowings
Interest expense on lease liabilities
Net foreign exchange losses
Bank charges
Net interest costs of defined benefit plans
Other financial costs
Finance costs
Net finance costs recognized in profit (loss)
Note
2018
2017
532
–
59
591
180
1,335
47
1,562
Note
2018
2017
16
(286)
(249)
(579)
(303)
(1,454)
(1,756)
(151)
(168)
(1)
(49)
(92)
(22)
(2,309)
(2,801)
(1,718)
(1,239)
14 Earnings per Registered Share
Following the unification of ordinary shares of the Company on 8 March 2018 from previously three classes of ordinary shares (ordinary
shares, voting shares, and participation certificates) into a single class of registered shares, the calculation of earnings per share has
been based on the profit or loss attributable to shareholders as presented in the consolidated income statement and the weighted-av-
erage number of registered shares outstanding. As a result of applying IAS 33, the number of shares outstanding for the comparative
period is adjusted as if the consolidation of shares without a corresponding change in resources had occurred at the beginning of the
earliest period presented (i.e. 1 January 2017).
14.1 Basic Earnings per Share
The weighted-average number of registered shares for the period ended 31 December 2018 for the purpose of calculating basic earn-
ings per registered share amounts to 14,289,768 (2017: 11,293,370).
14.2 Diluted Earnings per Share
The calculation of diluted earnings per share has been based on the profit or loss attributable to ordinary shareholders as presented in
the consolidated income statement and the weighted-average number of registered shares outstanding after adjustment for the effects
of all dilutive potential ordinary shares.
The weighted-average number of registered shares for the purpose of calculating diluted earnings per registered share amounts to
14,289,768 (2017: 11,293,370). The effects of all potential ordinary shares is anti-dilutive.
92
Sensirion Annual Report 2018Financial Report
15 Employee Benefits
In thousands of CHF
Short-term employee benefits
Total employee benefit liabilities, current
Net defined benefit liability
Other long-term employee benefit liabilities
Cash-settled share-based payment liability
Total employee benefit liabilities, non-current
For details on the related employee benefit expenses, see Note 10.
16 Post-Employment Benefits
Note
31 December 2018
31 December 2017
16
4,393
4,393
18,482
2,688
146
21,316
3,464
3,464
21,072
2,339
–
23,411
16.1 Defined Benefit Plans and Funding
The Group has pension plans in Switzerland and South Korea which qualify as defined benefit plans. The Swiss pension plan accounts
substantially for the whole net defined benefit liability reflected in the statement of financial position.
Pension plan in Switzerland
The Swiss pension plan is governed by the rules of the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension
Plans (BVG), which specifies the minimum benefits that are to be provided by pension plans and stipulates that such plans are to be
managed by independent, legally autonomous units. The assets of the pension plan are held within a separate foundation and cannot
revert back to the employer. Pension plans are overseen by a governmental supervisory body.
During 2018 the Group moved its pension plan from a fully insured plan to a solution with a collective pension fund without full reinsur-
ance of risks, with effect from 1 January 2019. Compared to the old pension plan under the new solution, Sensirion might be required
to pay restructuring contributions.
The Group’s net defined benefit liability decreased by CHF 2,590 thousand, mainly caused by a reduction of the conversion rates
applicable for the calculation of pension benefits effective as of 1 January 2019. A corresponding past service credit was recognized
in the income statement as a result of this plan amendment. Additionally, plan assets were increased to reflect the improved statutory
coverage ratio of the new pension plan as a result of the change. This resulted in a remeasurement gain of CHF 1,583 thousand that
was recognized in other comprehensive income.
The Group companies based in Switzerland are affiliated to a collective foundation administrating the pension plans of various unrelated
employers. The pension plan of the concerned Group companies is fully segregated from the ones of other participating employers.
The most senior governing body of the collective foundation is the board of trustees that consists of an equal number of employers’ and
employees’ representatives of the affiliated entities. The responsibilities of the board of trustees include, among others, the determina-
tion of and changes to the pension plan regulations and determination of the financing. The board of trustees has an obligation to act
solely in the interests of the plan beneficiaries.
93
Sensirion Annual Report 2018Financial Report
Plan beneficiaries, their spouses and children are insured against the financial consequences of old age, death, and disability. The
benefits are defined in the pension plan regulations that comply with the minimum requirements stipulated by the BVG. Retirement
benefits are based on the accumulated retirement savings capital and can either be drawn as a life-long pension or as a lump sum
payment. The pension upon retirement is calculated by multiplying the balance of the retirement savings capital with the applicable
conversion rate. The retirement savings capital results from the yearly savings contributions by both employer and employee until
retirement and carries interest thereon. The savings contributions are defined in the pension plan regulations. Minimum contributions
and minimum interest are defined by the BVG and the Federal Council respectively.
Until 31 December 2018 all actuarial risks of the plan, e.g. longevity risk, risk of disability, or death-in-service and investment risk, were
fully reinsured with an insurance company. A statutory deficit according to BVG was therefore not possible.
Under the old as well as under the new solution, based on the rules of the pension plan both the Group and the employees have an
obligation to finance 50 % of the cost of the pension plan. This obligation can only be changed upon agreement with the Group.
The insurance company bearing the investment risk was responsible for the investment of the plan assets up to and including 31 December
2018. As a result, the assets of the pension plan consisted of a receivable due from the insurance company and other assets.
In thousands of CHF
31 December 2018
31 December 2017
Assets held by insurance company (Switzerland)
Others (Switzerland)
Others (South Korea)
Total
59,854
541
1,172
61,567
54,317
–
1,131
55,448
The Group expects to pay CHF 3,756 thousand in contributions to its defined benefit plans in the next financial year.
94
Sensirion Annual Report 2018Financial Report
16.2 Movement in Net Defined Benefit Liability
The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit liability and its
components.
In thousands of CHF
2018
2017
Defined benefit
obligation
Fair value of
plan assets
Net defined
benefit liability
Defined benefit
obligation
Fair value of
plan assets
Net defined
benefit liability
Opening amount
(76,520)
55,448
(21,072)
(66,455)
47,479
(18,976)
Included in profit or loss
Current service (cost)
Past service (costs) credit
Interest (cost) income
Administration expenses
Total Included in profit or loss
Included in OCI
Remeasurements loss (gain):
Actuarial loss (gain) arising from:
– changes in financial assumptions
– experience adjustments
Return on plan assets excluding interest income
Effect of movements in exchange rates
Total Included in OCI
Other
Contributions paid by the employer
Contributions paid by plan participants
Benefits paid / received
Acquired through business combination
Total Other
(5,030)
1,971
(653)
–
(3,712)
1,016
(832)
–
95
279
–
(2,249)
2,153
–
(96)
–
–
485
(127)
358
(5,030)
(4,511)
1,971
(168)
(127)
–
(441)
–
(3,354)
(4,952)
–
–
2,308
(43)
2,265
3,083
2,249
(1,836)
–
1,016
(832)
2,308
52
2,544
3,083
–
317
–
3,496
3,400
846
67
–
(660)
253
–
(2,732)
(345)
(2,289)
(5,366)
–
–
349
(149)
200
–
–
285
580
865
2,935
2,732
345
892
6,904
(4,511)
–
(92)
(149)
(4,752)
846
67
285
(80)
1,118
2,935
–
–
(1,397)
1,538
Closing amount
(80,049)
61,567
(18,482)
(76,520)
55,448
(21,072)
Represented by
Net defined benefit liability – Switzerland
Net defined benefit liability – South Korea
(77,047)
(3,003)
59,795
1,773
(17,252)
(73,759)
(1,230)
(2,761)
54,317
1,131
(19,442)
(1,630)
95
Sensirion Annual Report 2018Financial Report 16.3 Actuarial Assumptions
The following were the principal actuarial assumptions for the Swiss pension plan at the reporting date.
In thousands of CHF
Switzerland
Discount rate
Future salary increase
Employee share of cost of the pension plan
Mortality table
31 December 2018
31 December 2017
0.95 %
1.00 %
50.00 %
0.80 %
1.00 %
50.00 %
BVG 2015 GT
BVG 2015 GT
Based on the plan regulations which limit the Group’s contributions to the plan to 50 % of the total contributions, past communications
to the employees and the history of the cost split between Sensirion and its employees the Group assumed that its share in the ultimate
cost of the Swiss pension plan is also limited to 50 % and that it does not have an additional constructive obligation. Based on the
assumption that the plan continues to pay benefits and receive contributions as currently defined in the plan regulations and based on
an implicit future return on plan assets equal to the discount rate, the calculation under IAS 19 shows that there is a structural deficit.
This means that part of the benefits to be paid in the future is not financed by the plan assets and the future contribution from employer
and employees. The Group assumed that the deficit is shared between the employer and the employees and that the Group’s obligation
is limited to 50 %. Sensirion believes that the fact that the collective foundation may withdraw from the affiliation contract with Sensirion
does not change this assumption since a termination of the contract would not necessarily increase Sensirion’s legal and constructive
obligation. The allocation of the deficit between employer and employees was performed for each active member. The part of the deficit
relating to past service years reduced the DBO of the active members at the balance sheet date and the part relating to future service
years will reduce future service costs. At 31 December 2018, the weighted-average duration of the defined benefit obligation was
21.3 years (2017: 22.2 years).
16.4 Sensitivity Analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant,
would have affected the defined benefit obligation of the Swiss pension plan by the amounts shown below.
Discount rate (0.25 % movement) – Switzerland
Future salary growth (0.5 % movement) – Switzerland
Future mortality (1 % movement)
31 December 2018
31 December 2017
Increase Decrease Increase Decrease
(2,061)
2,253
(2,298)
2,100
1,257
(1,175)
2,074
(1,954)
n/a
n/a
n/a
n/a
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approxi-
mation of the sensitivity of the assumptions shown.
Without the application of risk-sharing assumptions for the Swiss pension plan, the net defined benefit liability in Switzerland would
amount to CHF 22,957 thousand (2017: CHF 24,563 thousand,) and the service costs for Switzerland would amount to CHF 4,959
thousand (2017: CHF 4,555 thousand).
96
Sensirion Annual Report 2018Financial Report 17 Share-Based Payment Arrangement
17.1 Description of Share-Based Payment Arrangements
At 31 December 2018, the Group had the following share-based payment arrangements.
IPO Loyalty Share Program (equity-settled and cash-settled)
In March 2018, the Group established a program under which restricted share units (RSU) are granted to its employees. The amount
of RSU under the plan is allocated to the participants in relation to the accumulated bonus amounts of each employee. Under the terms
of the plan, 50 % of the allocated amount of RSU vest if the employee has not resigned or if the Group has not terminated the services
of the employee by 15 January 2019. The remaining 50 % of the allocated RSU vest at 15 January 2020 if the employee is not under
notice by that time. The RSU are directly converted into registered shares of the Company upon vesting for a payment of a conversion
price CHF 0.10 each.
If the allocation to an individual employee amounts to less than 200 RSU, a corresponding cash amount replaces the respective RSU.
The Group granted 560,267 RSU under the IPO Loyalty Share Program. The fair value of one RSU at grant date amounts to CHF 35.90,
whereas the amount that is paid in cash is remeasured throughout the vesting period and eventually upon settlement and amounts to
CHF 42.15 for a RSU equivalent at 31 December 2018. The grant date fair value of one RSU is derived from the book-building process
ahead of the IPO of the Company. For the IPO Loyalty Share Program, the Group recognized an employee benefit expense of
CHF 16,157 thousand (including social security expenses of CHF 2,399 thousand) in 2018.
Bonus and Restricted Share Unit Plan (settlement choice for employees and equity-settled for members of
the Executive Committee)
In 2018, the Group established a recurring bonus program under which an eligible employee who has not given or received notice of termi-
nation may choose between the payment of its annual bonus entirely in cash (“Cash Bonus”) or entirely in shares of the Company and
additional RSU (“Equity Bonus”); provided that the employee has not been given notice of termination for cause by its employer. For the
Equity Bonus, the number of shares is determined by dividing the bonus amount by the average price of the Company’s shares on the
SIX Swiss Exchange over a period of time before the date of the allocation of the shares. Such shares may not be sold, otherwise transferred,
pledged, or made object of hedging transactions for a period of three years after the end of the election period. The number of RSUs granted
within the Equity Bonus will be determined by the Group in its sole discretion at the grant date, which generally corresponds to mid-Decem-
ber of the annual performance period. The RSUs vest over a period of three years starting from the end of the election period.
The number of shares granted to employees amounts to 50,593 and the number of RSU granted amounts to 12,648. The fair value of
one share at grant date amounts to CHF 38.90 and the fair value of one RSU at grant date amounts to CHF 38.90. The values corre-
spond to the listed share price of the Company’s shares at grant date.
Contrary to employees, members of the Executive Committee have no settlement choice, they will receive their annual bonus entirely
in the form of an Equity Bonus. Approval of the aggregate amount of variable compensation for the Executive Committee by Sensirion
Holding AG’s annual general meeting pursuant to the articles of association of the Company is required. All other conditions are similar
to the other employees.
The number of shares granted to members of the Executive Committee amounts to 3,588 and the number of RSUs granted amounts
to 3,588. The estimated fair value of one share at grant date amounts to CHF 42.15 and the estimated fair value of one RSU at grant
date amounts to CHF 42.15. The values correspond or are derived from the listed share price of the Company’s shares at 31 December
2018. These estimated fair values will be updated to reflect the circumstances at the date of the next annual general meeting.
For 2018, the Group granted a total annual bonus amount of CHF 4,376 thousand (CHF 1,613 thousand as cash bonus and CHF 2,763
thousand as equity bonus).
97
Sensirion Annual Report 2018Financial Report
At 31 December 2017, the Group had the following share-based payment arrangement.
Legacy bonus plan (until end of December 2017)
Since the year 2000, the Group’s employees had the right to receive their annual bonus amount either in cash or, partially or fully, in
options on participation certificates. Previously, up to the year 2000, the employees had the right to receive their bonus in options on
ordinary shares; all options on ordinary shares were exercised into ordinary shares by the year 2000. Each option on participation
certificates allowed the holder to convert it into one participation certificate in exchange for an exercise price amounting to the nominal
value of the participation certificate (CHF 0.10). The options on participation certificates were exercisable after two months from the
grant date and had an option life of 11 years from the grant date.
Until the end of November 2017 when the arrangement was modified (see below), the participation certificates and ordinary shares
eventually issued under the share-based payment arrangement included a call option for the Group to repurchase the equity instru-
ments in the case of the employee leaving the Group. The call option was exercisable within six months from the termination of employ-
ment. The exercise price of the call options was determined bi-annually based on a pre-determined formula which considered actual
and forecasted operating profits as well as actual and forecasted research and development expenses. Due to the past practice of the
Group to settle the share-based payment arrangement in cash, it was classified as cash-settled until the end of November 2017. In
addition, the ordinary shares that were issued under bonus arrangements included a put option for the holder that was exercisable at
any time until end of November 2017. By the end of November 2017, the Group suspended its call option rights and the counterparties
waived their put option rights. This modification changed the classification of the arrangement from a cash-settled to an equity-settled
plan at the modification date at the end of November 2017. This modification resulted in the derecognition of the cash-settled share-
based payment liability, which was ultimately remeasured at the modification date, with a counter-entry to equity (capital reserve) in the
amount of CHF 19,422 thousand. No incremental fair value was granted as part of the modification.
Since December 2017, the share-based payment arrangement under which the Group’s employees have the right to receive their
annual bonus amount either in cash or, partially or fully, in participation certificates was classified as equity-settled share-based
payment.
17.2 Outstanding Instruments at the Reporting Date
Details on the number of instruments outstanding under the share-based payment arrangements at the reporting date are as follows.
In units
31 December 2018
31 December 2017
Options on participation certificates
Restricted share units – IPO Loyalty Share Program
Restricted share units – Bonus and Restricted Share Unit Plan
–
527,863
16,236
2,479
–
–
The call option on participation certificates and ordinary shares was suspended by the Group while the counterparties waived their put
option rights on ordinary shares end of November 2017 (see Note 17.1).
98
Sensirion Annual Report 2018Financial Report
17.3 Reconciliation of Outstanding RSU and Options on Participation Certificates
The number and weighted-average exercise prices of RSU and participation certificate options under the share-based payment arrange-
ments were as follows.
In options
Outstanding at 1 January
Exercised during the year
Granted during the year
To be settled in cash (< 200 RSU)
Forfeited during the year
Outstanding at 31 December
Exercisable at 31 December
2018
2017
Weighted-average
exercise price
(in CHF)
Number of options
on participation
certificate
Weighted-average
exercise price
(in CHF)
Number of options
on participation
certificates
Weighted-average
exercise price
(in CHF)
Number of RSU
–
–
576,503
(17,188)
(15,216)
544,099
–
–
–
0.10
0.10
0.10
0.10
–
2,479
(2,479)
–
–
–
–
–
0.10
0.10
–
–
–
–
–
3,556
(80,477)
79,400
–
–
2,479
2,479
0.10
0.10
0.10
–
–
0.10
0.10
The RSU outstanding at 31 December 2018 had an exercise price of CHF 0.10 and a weighted-average contractual life of 0.66 years.
The options outstanding at 31 December 2017 – all of which were exercised in 2018 – had an exercise price of CHF 0.10 and a weight-
ed-average contractual life of 2.7 years. The weighted average participation certificate price at the date of exercise for participation
certificate options exercised in 2018 was CHF 19.92 (2017: CHF 21.31).
17.4 Measurement of Fair Values of Equity-Settled Share-Based Payment Plan in 2017
For 2017, the Group’s employees had the right to receive their annual bonus amount in cash or, partially or in full, in participation cer-
tificates. The fair value of participation certificates granted at 31 December 2017 under the equity-settled arrangement (see Note 17.1)
amounted to CHF 19.92. The fair value was measured based on a valuation of the Group. No dividends were incorporated into the
measurement of fair value.
99
Sensirion Annual Report 2018Financial Report 18 Leases
18.1 Amounts Reflected in the Financial Statements
In addition to the lease liabilities presented in the consolidated statement of financial position, the following amounts relate to leases in
that statement.
In thousands of CHF
Right-of-use assets
Buildings
Cars
31 December 2018
31 December 2017
11,036
30
11,051
16
The consolidated income statement shows the following amounts related to leases.
In thousands of CHF
2018
2017
Depreciation charge of right-of-use assets
Buildings
Cars
Expenses
Related to short-term leases / low-value asset leases
Further information relating to leases are as follows.
In thousands of CHF
Total cash outflows for leases
Additions to right-of-use assets
1,599
19
158
2018
1,910
1,617
1,187
16
205
2017
1,516
1,644
18.2 Short-term Leases and Leases of Low-Value Assets
The Group applies the short-term lease and leases of low-value assets exemption. Short-term leases are leases with a lease term of
12 months or less from the commencement date and without a purchase option. Low-value assets relate to equipment and small items
of office furniture where their individual asset value is less than CHF 5 thousand when new.
19
Income Taxes
19.1 Tax Income (Expense) in the Period
In thousands of CHF
Current tax expense
Origination and reversal of temporary differences
Recognition of previously unrecognized tax losses
Derecognition of previously recognized deductible tax losses
Deferred tax income (expense)
Total
100
Note
19.5
19.4
2018
(306)
(92)
668
–
576
270
2017
(399)
(1,573)
–
(980)
(2,553)
(2,952)
Sensirion Annual Report 2018Financial Report 19.2 Reconciliation of Effective Tax Rate
The Group’s tax rate of 20 % reflects the weighted average tax rate applicable to results of the consolidated Group companies.
In thousands of CHF
Note
2018
Profit (loss) before tax
Tax using the Group’s tax rate of 20 %
Tax effect of
– Non-deductible expenses
– Effect of companies with mixed tax rates
– Current year losses not recognized
Recognition of previously unrecognized tax losses
Derecognition of previously recognized deductible tax losses
Excess taxes deduction recognized in equity
Other
Income taxes
19.5
19.5
(6,657)
1,331
(302)
(420)
(317)
668
–
(448)
(242)
270
2017
2,186
(437)
(853)
360
(668)
–
(980)
–
(374)
(2,952)
19.3 Amounts Recognized in Other Comprehensive Income
The tax (expense) credit relating to components of the other comprehensive income is as follows.
In thousands of CHF
Before tax
Tax (expense)
credit
After tax
2018
Remeasurement of net defined benefit obligation
Foreign operations – foreign currency translation differences
Equity investments at FVOCI – net change in fair value
Other comprehensive income
2017
Remeasurement of net defined benefit obligation
Foreign operations – foreign currency translation differences
Available-for-sale financial assets – net change in fair value
Other comprehensive income
2,492
(3,122)
(346)
(976)
1,198
4,067
1,082
6,347
(498)
–
69
(429)
(240)
–
(216)
(456)
1,994
(3,122)
(277)
(1,405)
958
4,067
866
5,891
101
Sensirion Annual Report 2018Financial Report 19.4 Movement in Deferred Tax Balances
In thousands of CHF
2018
Trade receivables
Inventories
Property, plant, and equipment
Right-of-use assets
Financial assets
Equity-accounted investees
Intangible assets
Employee benefits (current)
Provisions
Lease liabilities
Employee benefits (non-current)
Tax losses carried forward
Tax assets (liabilities) before set-off
Set-off of tax
Net tax assets (liabilities)
2017
Trade receivables
Inventories
Property, plant, and equipment
Right-of-use assets
Financial assets
Equity-accounted investees
Intangible assets
Accrued expenses
Provisions
Lease liabilities
Employee benefits
Tax losses carried forward
Tax assets (liabilities) before set-off
Set-off of tax
Net tax assets (liabilities)
Net balance at
1 January
Recognized in
profit or loss
Recognized in
OCI
Acquired in
business
combination
Deferred tax
assets
Deferred tax
liabilities
Net
Balance at 31 December
(756)
(1,545)
(2,889)
(2,213)
(467)
38
(94)
(296)
(154)
–
(66)
(38)
(1,039)
(973)
–
(1,567)
(910)
1,870
4,683
(94)
200
173
993
3,485
9,819
(7,584)
2,235
(536)
(1,089)
(3,253)
(2,125)
(20)
(307)
(533)
(935)
65
2,109
4,273
3,407
1,056
–
–
576
–
576
(220)
(456)
364
(88)
(231)
345
119
935
(975)
(239)
307
(2,414)
(2,553)
–
(2,553)
–
–
–
–
69
–
–
–
–
–
(498)
–
(429)
–
(429)
–
–
–
–
(216)
–
–
–
–
–
(240)
–
(456)
–
(456)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(850)
(1,841)
(3,043)
(2,213)
(464)
–
(2,012)
(1,567)
(1,004)
2,070
4,358
4,478
–
–
–
–
–
–
–
–
–
2,070
4,358
4,478
850
1,841
3,043
2,213
464
–
2,012
1,567
1,004
–
–
–
(2,088)
10,906
12,994
–
(10,906)
(10,906)
(2,088)
–
2,088
(756)
(1,545)
(2,889)
(2,213)
(467)
38
(625)
(1,039)
–
–
–
343
–
–
(910)
1,870
4,683
993
(282)
(2,235)
–
–
(282)
(2,235)
–
–
–
–
–
38
–
–
–
1,870
4,683
993
7,584
(7,584)
–
756
1,545
2,889
2,213
467
–
1,039
–
910
–
–
–
9,819
(7,584)
2,235
19.5 Unrecognized Deferred Tax Assets
In thousands of CHF
Unrecognized tax losses
and tax credits
Unrecognized deferred
tax assets
Unrecognized tax losses
and tax credits
Unrecognized deferred
tax assets
31 December 2018
31 December 2017
Expires in 4 years
Expires in 7 years or beyond
Total
1,587
–
1,587
317
–
317
–
3,071
3,071
–
668
668
102
Sensirion Annual Report 2018Financial Report 20 Property, Plant, and Equipment
In thousands of CHF
Cost
Land
and buildings
Production
facilities
Under
construction
Other
Total
Opening amount 1 January 2018
49,597
68,613
3,781
10,878
132,869
Acquisitions through business combinations
Additions
Disposals
Reclassifications
Currency translation differences
–
605
(736)
361
(254)
–
2,538
(1,640)
618
(84)
–
4,407
–
(2,818)
(58)
–
1,860
(99)
2,046
(113)
–
9,410
(2,475)
207
(509)
Closing amount 31 December 2018
49,573
70,045
5,312
14,572
139,502
Accumulated depreciation and impairment
Opening amount 1 January 2018
Depreciation
Disposals
Currency translation differences
Closing amount 31 December 2018
Total carrying amount
11,570
1,895
(129)
(2)
13,334
36,239
47,105
6,339
(1,417)
221
52,248
17,797
–
–
–
–
–
5,312
7,458
1,726
(87)
(17)
9,080
5,492
66,133
9,960
(1,633)
202
74,662
64,840
Carrying amount pledged as security for liabilities
–
–
–
–
–
Cost
Opening amount 1 January 2017
Acquisitions through business combinations
Additions
Disposals
Reclassifications
Currency translation differences
Closing amount 31 December 2017
Accumulated depreciation and impairment
Opening amount 1 January 2017
Depreciation
Disposals
Currency translation differences
Closing amount 31 December 2017
Total carrying amount
40,437
6,867
1,896
(800)
131
1,066
49,597
10,637
1,725
(793)
1
11,570
38,027
64,929
831
5,810
(3,477)
496
24
68,613
43,875
6,333
(3,104)
1
47,105
21,508
–
(3,383)
2,360
139
2,452
(1,180)
10
3,781
–
–
–
–
–
3,781
12,466
120,192
103
860
554
278
7,940
11,018
(7,660)
1
1,378
10,878
132,869
8,872
1,795
(3,209)
–
7,458
3,420
63,384
9,853
(7,106)
2
66,133
66,736
Carrying amount pledged as security for liabilities
14,500
–
–
–
14,500
Own development and construction costs in the amount of CHF 4,407 thousand (2017: CHF 2,452 thousand) have been capitalized
within the category under construction.
103
Sensirion Annual Report 2018Financial Report 21 Goodwill and Intangible Assets
21.1 Reconciliation of Carrying Amounts
In thousands of CHF
Total
Goodwill
Patents and
trademarks
Development
costs
Software
Under
construction
Other
intangibles
Total intangible
assets
5,737
5,724
6,301
1,297
636
313
14,271
Cost
Opening amount 1 Jan 2018
Acquisitions through
business combinations
Additions – internally developed
Additions – separately acquired
Disposals
Reclassifications
Currency translation differences
(386)
Closing amount 31 Dec 2018
11,150
Accumulated amortization
and impairment
Opening amount 1 Jan 2018
5,600
Amortization
Impairment loss
Disposals
–
–
–
Currency translation differences
Closing amount 31 Dec 2018
(187)
5,413
Total carrying amount
31 Dec 2018
Cost
Opening amount 1 Jan 2017 *
Acquisitions through business
combinations
Additions – internally developed
Additions – separately acquired
Disposals
Reclassifications
–
–
–
–
–
–
–
–
–
Currency translation differences
805
Closing amount 31 Dec 2017
11,536
Accumulated amortization
and impairment
Opening amount 1 Jan 2017
Amortization
Impairment loss
Disposals
Currency translation differences
–
–
5,600
–
–
11,536
9,107
8,794
2,115
–
–
1,030
(582)
–
(317)
9,238
2,922
1,063
–
(430)
(41)
–
2,754
–
–
(333)
–
–
–
346
–
–
55
11,215
2,516
3,052
1,862
–
–
–
623
595
–
–
1
3,514
4,914
1,219
–
5,487
5,921
568
10,731
2,659
–
929
(256)
–
288
9,107
2,430
596
–
(104)
–
–
3,250
–
(377)
–
–
–
–
1,547
–
–
–
8,794
2,115
2,011
1,383
–
(342)
–
491
132
–
–
–
Closing amount 31 Dec 2018
5,600
2,922
3,052
623
Total carrying amount
31 Dec 2017
* Goodwill was revised, see Note 8.
104
5,936
6,185
5,742
1,492
–
–
–
512
–
126
(2)
636
–
–
–
–
–
–
990
21,006
–
–
85
–
–
(3)
–
2,754
1,973
(582)
(207)
(267)
1,072
24,677
496
256
–
–
7
7,093
3,776
–
(430)
(33)
759
10,406
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
990
12,966
–
–
–
–
–
–
2,659
3,250
2,476
(633)
–
288
990
21,006
248
248
–
–
–
496
5,180
2,359
–
(446)
–
7,093
494
13,913
Sensirion Annual Report 2018Financial Report The Group capitalizes development costs in relation to specific projects considering a number of criteria which are outlined in Note 5.7.
Management applies judgment in applying those criteria to its projects, especially in assessing the probability of future economic ben-
efits. Such probability is often linked to the technical feasibility of the products. The point in time at which the technical feasibility of
completing the intangible assets is demonstrated can vary significantly between the individual projects. The assessment is jointly
performed by the respective project leader and the Group’s Vice President of Research and Development.
Development costs in the amount of CHF 2,754 thousand (2017: CHF 3,250 thousand) have been capitalized. Included in these devel-
opment costs is an amount of CHF 22 thousand (2017: CHF 41 thousand) that represents borrowing costs capitalized during the year
using a capitalization rate of 1.44 % (2017: 1.44 %).
21.2 Impairment Testing of Goodwill
Goodwill is allocated to the Group’s CGUs as follows.
In thousands of CHF
CGU Sensors
CGU Automotive Solutions
Total Goodwill
* Goodwill was revised, see Note 8.
31 December 2018
31 December 2017*
–
5,737
5,737
–
5,936
5,936
Impairment test on CGU Automotive Solutions
The CGU automotive solutions comprises the sensor and module business of AIC, acquired in 2017, which encompasses the design,
manufacturing, and sale of sensor modules for the automotive industry and a sales team in Switzerland. Its key products are auto-
defogging sensors (ADS), air quality sensors (AQS), and carbon dioxide (CO2) sensors.
The recoverable amount of this CGU was based on its value in use, determined by discounting the future cash flows to be generated
from the continuing use of the CGU.
In 2018 the recoverable amount of the CGU Automotive Solutions is higher than its carrying amount. Therefore, no impairment loss was
recognized in 2018.
In 2017 the carrying amount of the CGU was determined to be higher than its recoverable amount of CHF 24,707 thousand and an
impairment loss of CHF 5,600 thousand during 2017 was recognized. The reason was that the Group was acquiring also AIC’s pressure
sensor business which, from the outset, it did not intend to use for strategic reasons since the Group already exited the absolute pres-
sure sensor business in 2016. This exclusion is reflected in the business plan of the CGU Automotive Solutions underlying the value-
in-use calculation. The impairment loss was fully allocated in 2017 to goodwill and included in “Research and development expenses”
in the income statement. Following the impairment loss recognized in 2017 in the CGU Automotive Solutions, the recoverable amount
was equal to the carrying amount.
The values assigned to the key assumptions represent management’s assessment of future trends in the relevant industries and have
been based on historical data from both external and internal sources. The key assumptions used in the estimation of the recoverable
amount are disclosed in the table below.
105
Sensirion Annual Report 2018Financial Report
In percent
Discount rate
Terminal growth rate
31 December 2018
31 December 2017
14.70 %
2.50 %
12.80 %
2.00 %
The discount rate was a pre-tax measure based on observable weighted average cost of capital (WACC) of comparable companies in
the relevant market.
Five years of cash flows were included in the discounted cash flow model. A long-term growth rate into perpetuity has been determined
as the lower of the nominal gross domestic product (GDP) rates for the countries in which the CGU operates and the long-term com-
pound annual EBITDA growth rate estimated by management. Budgeted EBITDA was based on expectations of future outcomes taking
into account past experience, adjusted for anticipated revenue growth.
21.3 Amortization
The amortization of patents, trademarks, and development costs is included in “Research and development expenses”. The amortiza-
tion of customer relationships is included in “Cost of sales”.
22 Inventories
In thousands of CHF
Purchased parts
Semi-finished and finished goods
Work in progress
Total
Allowance on purchased parts
Allowance on semi-finished and finished goods
Total
Total Inventories
31 December 2018
31 December 2017
11,406
17,369
4,137
32,912
(295)
(2,441)
(2,736)
12,149
9,227
6,405
27,781
(871)
(1,118)
(1,989)
30,176
25,792
The valuation of work in progress, semi-finished and finished goods is underlying management judgment with regards to planned
production capacities which impact standard costs. As valuation allowances are calculated based on historical experience as well as
management’s judgment, this directly affects the carrying amount of inventories.
In 2018, inventories of CHF 42,625 thousand (2017: CHF 33,549 thousand) were recognized as an expense and included in “Cost of sales”.
In addition, during 2018 inventory allowances were increased by CHF 747 thousand (2017: reduced by CHF 1,307 thousand).
106
Sensirion Annual Report 2018Financial Report
23 Trade and Other Receivables
In thousands of CHF
Trade receivables, gross
Allowance for doubtful receivables
Total trade receivables
Non-income tax receivables
Social security
Escrow
Other
Total other receivables
* Goodwill was revised, see Note 8.
31 December 2018
31 December 2017
restated*
22,230
(90)
22,140
2,351
50
–
1,442
3,843
21,138
(3)
21,135
2,066
3
3,799
1,068
6,936
Trade receivables result from transactions in the ordinary course of business where Sensirion has provided goods and has a right to
receive the payment.
Information about the Group’s exposure to credit and market risks, and impairment losses for trade and other receivables is included
in Note 27.
24 Equity
24.1 Share Capital
The Company unified its share capital in advance of its IPO at a general meeting on 8 March 2018. Previously, the Company had three
different classes of ordinary shares (ordinary shares, voting shares, participation certificates). As a result of the unification, the Company
has solely registered shares with a nominal value of CHF 0.10. Holders of these shares are entitled to dividends as declared from time
to time and are entitled to one vote per share at general meetings of the Company. All rights attached to the Company’s shares held by
the Group are suspended until those shares are reissued.
In shares
Total in issue at 1 January
Unification of shares
Capital increase
Capital increase from authorized share capital
Outstanding at 31 December
2018
Registered
shares
Ordinary
shares
Voting
shares
Participation
certificates
–
5,595
58,975
965,672
12,458,172
(5,595)
(58,975)
(965,672)
1,530,000
1,152,000
15,140,172
–
–
–
–
–
–
–
–
–
107
Sensirion Annual Report 2018Financial Report In shares and participation certificates
In issue at 1 January without call and/or put options
In issue at 1 January with call and/or put options
Total in issue at 1 January
Issued from conditional participation capital with call options
Suspension of call and put options
Total in issue at 31 December
2017
Ordinary
shares
Voting
shares
Participation
certificates
5,394
201
5,595
–
201
58,975
–
58,975
–
–
5,595
58,975
130,327
835,345
965,672
–
835,345
956,672
Until the end of November 2017, the participation certificates and ordinary shares eventually issued under the share-based payment
arrangement (see Note 17) included a call option for the Group to repurchase the equity instruments in the case of the employee leaving
the Group. In addition, the ordinary shares that were issued under bonus arrangements included a put option for the holder that was
exercisable at any time until end of November 2017. By the end of November 2017, the Group suspended its call option rights and the
counter-parties waived their put option rights.
In 2018, the Company increased its share capital by CHF 268 thousand which had the effect of increasing the capital reserve of
CHF 96,283 thousand (premium). The corresponding cost for the capital increase that were deducted from the capital reserve amounted
to CHF 5,079 thousand.
24.1.1 Registered shares
Holders of these shares which have a nominal value of CHF 0.10 are entitled to dividends as declared from time to time and are entitled
to one vote per share at general meetings of the Company. All rights attached to the Company’s shares held by the Group are sus-
pended until those shares are reissued.
24.1.2 Ordinary shares (until unification of shares on 8 March 2018)
Holders of these shares which had a nominal value of CHF 100 were entitled to dividends as declared from time to time and were
entitled to one vote per share at general meetings of the Company. All rights attached to the Company’s shares held by the Group were
suspended until those shares were reissued.
24.1.3 Voting shares (until unification of shares on 8 March 2018)
Holders of these shares which had a nominal value of CHF 10 were entitled to dividends as declared from time to time and were entitled
to one vote per share at general meetings of the Company. All rights attached to the Company’s shares held by the Group were sus-
pended until those shares were reissued.
24.1.4 Participation certificates (until unification of shares on 8 March 2018)
Holders of these certificates which had a nominal value of CHF 0.10 were entitled to dividends as declared from time to time. These
certificates did not entitle the holder to any voting rights. All rights attached to the Company’s certificates held by the Group were
suspended until those certificates were reissued.
108
Sensirion Annual Report 2018Financial Report
24.1.5 Conditional capital
As of 31 December 2018, the Company’s conditional capital amounts to CHF 347 thousand, encompassing 3,472,251 shares each
with a nominal value of CHF 0.10 (31 December 2017: CHF 16 thousand encompassing 162,373 participation certificates with a
nominal value of CHF 0.10 each) and reserved for the following purposes.
In shares
Conditional share capital for employee participations
Conditional share capital for financing, acquisitions, and other purposes
Conditional share capital for employee participations in connection with the IPO loyalty share program
Total conditional share capital at 31 December
2018
1,455,817
1,455,817
560,617
3,472,251
24.2 Nature and Purpose of Reserves
24.2.1 Capital reserve
The capital reserve comprises share premiums, the gain or loss on sale of treasury, the effect of modification of cash-settled to equity-
settled plans, and the effects of equity-settled share-based payment transactions, including any tax effects such as excess tax deductions.
24.2.2 Treasury shares reserve
The reserve for the Company’s treasury shares comprises the cost of the Company’s shares held by the Group. At 31 December 2018,
the Group held 241,351 of the Company’s registered shares (2017: 82 ordinary shares and 276,831 participation certificates).
During 2017, the Group has exchanged 303,000 of the Company’s treasury participation certificates with call options against 303
ordinary shares with call and put options in a non-cash transaction. As a result of this transaction, the Group increased its treasury
shares and participation reserve by CHF 5,326 thousand with a corresponding entry to the capital reserve.
24.2.3 Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign
operations, including foreign currency differences on dedicated intra-group loans.
24.2.4 Revaluation reserve
The revaluation reserve relates to the fair value revaluation of equity investments at FVOCI, including income tax effects. In the com-
parative period, the reserve related to the fair value revaluation of available-for-sale financial assets, including tax effects.
24.2.5 Retained earnings
The retained earnings include the accumulated net profits of the Group and remeasurements of the net defined benefit liability, includ-
ing income tax effects.
24.3 Dividends
Holders of registered shares participate in any dividends declared by the Company. The Company has not paid any dividends in the
periods presented.
109
Sensirion Annual Report 2018Financial Report
24.4 OCI Accumulated in Reserves, Net of Tax
In thousands of CHF
2018
Remeasurements of defined benefit liability
Foreign operations – foreign currency translation differences
Equity investments at FVOCI – net change in fair value
Total
2017
Remeasurements of defined benefit liability
Foreign operations – foreign currency translation differences
Available-for-sale financial assets – net change in fair value
Total
25 Capital Management
Attributable to owners of Sensirion Holding AG
Note
Translation
reserve
Revaluation
reserve
Retained
earnings
Total
19.3
19.3
19.3
19.3
19.3
19.3
–
(3,122)
–
(3,122)
–
4,067
–
4,067
–
–
(277)
(277)
–
–
866
866
1,994
–
–
1,994
1,994
(3,122)
(277)
(1,405)
958
–
–
958
958
4,067
866
5,891
The objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns
for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure. In order to maintain or adjust the
capital structure, the Group may repay capital to shareholders, issue new capital, or sell assets to reduce debt.
By ensuring the Group adheres to defined debt/equity ratio covenant limits and other covenants under the Group’s financing arrange-
ments, management meets the primary capital risk objective.
In thousands of CHF
Note 31 December 2018
31 December 2017
Total liabilities
Less: cash and cash equivalents
Net cash (debt)
Total equity
Net cash (debt) to equity ratio
26 Loans and Borrowings
In thousands of CHF
Bank loans in CHF
Bank loans in USD
Bank loans in EUR
Total current loans and borrowings
110
(54,482)
53,938
(544)
160,433
(0.3 %)
(115,086)
9,393
(105,693)
60,970
(173.4 %)
average nominal
interest rate
31 December 2018
31 December 2017
1.35 %
1.20 %
1.40 %
–
–
–
–
66,000
975
585
67,560
Sensirion Annual Report 2018Financial Report 26.1 Reconciliation of Movements of Liabilities to Cash Flows Arising from
Financing Activities
In thousands of CHF
Balance at 1 January 2018
Changes from financing cash flows
Payment of lease liabilities
Repayment from loans and borrowings
Total changes from financing cash flows
The effect of changes in foreign exchange rates
Other changes
New leases
Interest expenses
Interest paid
Total other changes
Balance at 31 December 2018
Balance at 1 January 2017
Changes from financing cash flows
Payment of lease liabilities
Proceeds from loans and borrowings
Total changes from financing cash flows
The effect of changes in foreign exchange rates
Other changes
New leases
Interest expenses
Interest paid
Total other changes
Balance at 31 December 2017
27 Financial Instruments
Liabilities
Note
Loans
and borrowings
Lease liabilities
67,560
11,178
18
18
–
(67,560)
(67,560)
–
–
286
(286)
–
–
(1,910)
–
(1,910)
141
1,617
375
(36)
1,956
11,365
28,646
10,543
–
38,914
38,914
(52)
–
579
(527)
52
67,560
(1,311)
–
(1,311)
101
1,644
303
(102)
1,845
11,178
27.1 Accounting Classifications and Fair Values
The effect of initially applying IFRS 9 on the Group’s financial instruments is described in Note 2. Due to the transition method chosen,
comparative information has not been restated to reflect the new requirements.
The following table shows the carrying amounts and fair values of financial assets and financial liabilities at the reporting date, includ-
ing their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not mea-
sured at fair value if the carrying amount is a reasonable approximation of fair value.
111
Sensirion Annual Report 2018Financial Report
As of 31 December 2018
In thousands of CHF
Note
Carrying amount
Financial
assets at
amortized
cost
FVOCI –
equity
instru-
ments
Other
financial
liabilities
Fair value
Total
Level 1
Level 2
Level 3
Total
Financial assets measured
at fair value
Equity securities
Total financial assets
measured at fair value
Financial assets not
measured at fair value
Trade receivables
Cash and cash equivalents
Total financial assets not
measured at fair value
Financial liabilities not
measured at fair value
Trade payables
Lease liabilities
Total financial liabilities not
measured at fair value
In thousands of CHF
Financial assets measured
at fair value
Equity securities
Total financial assets
measured at fair value
Financial assets not
measured at fair value
–
–
–
–
–
27.2
–
–
3,445
3,445
3,445
–
3,445
–
–
3,445
3,445
3,445
3,445
23 22,140
53,938
76,078
26.1
–
–
–
–
–
–
–
–
–
–
–
–
22,140
53,938
76,078
–
–
–
8,802
8,802
11,365
11,365
20,167
20,167
–
–
–
–
11,692
11,692
–
–
–
–
–
–
–
–
–
–
11,692
11,692
As of 31 December 2017
Carrying amount
Fair value
Loans and
receiv ables
Available-
for-sale
Note
Other
financial
liabilities
Total
Level 1
Level 2
Level 3
Total
27.2
–
–
3,328
3,328
3,328
3,328
–
3,328
–
–
3,328
Trade and other receivables
23 27,553
Cash and cash equivalents
Total financial assets not
measured at fair value
9,393
36,946
–
–
–
– 27,553
–
9,393
– 36,946
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
4,834
4,834
– 67,560
67,560
– 11,178
11,178
– 11,894
– 83,572
83,572
– 11,894
Financial liabilities not
measured at fair value
Trade and other payables
Bank loans
Lease liabilities
Total financial liabilities not
measured at fair value
26
26.1
–
–
–
–
112
3,328
3,328
–
–
–
–
–
11,894
11,894
Sensirion Annual Report 2018Financial Report 27.2 Measurement of Fair Values
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unob-
servable inputs used and their inter-relationship with the fair value measurement for Level 3 fair values.
Type
Valuation technique
Significant unobservable inputs
Financial instrument measured at fair value
Equity securities
Discounted cash flows: the fair
value is determined by discount-
ing the estimated future cash
flows of the investee using a rate
of return that comprises the time
value of money and the risk of the
investment.
– Forecast annual revenue
growth rate (2018: 1.2 % /
1.2 %, 2017: 0 %)
– Forecast average EBITDA
(2018: CHF 2,139 thousand /
CHF 2,458 thousand, 2017:
CHF 8,998 thousand)
– Risk-adjusted discount rate
(2018 10.00 % / 36.29 %,
2017: 24.14 %:)
Inter-relationship between key
unobservable inputs and fair
value measurement
The estimated fair value would
increase (decrease) if:
– the annual revenue growth
rate were higher (lower);
– the EBITDA were higher
(lower); or
– the risk-adjusted discount rate
were lower (higher).
Financial instruments not measured at fair value
Lease liabilities
Discounted cash flows: the
valuation model considers the
present value of expected
payments, discounted using an
incremental borrowing rate.
–
–
For the fair value of the equity securities – FVOCI and available-for-sale, respectively, reasonably possible changes at the reporting date
to one of the significant unobservable inputs, holding other inputs constant, would have the following effects.
Effect in thousands of CHF
Annual revenue growth rate (2018: 10 % movement)
Average EBITDA (2018: 10 % movement)
The following table shows a reconciliation in respect of recurring Level 3 fair values.
In thousands of CHF
Opening amount
Acquisition of capital
Profit (loss) included in other comprehensive income
Closing amount
OCI, net of tax
31 December 2018
31 December 2017
Increase Decrease
Increase Decrease
850
358
(850)
(358)
2018
n/a
n/a
n/a
n/a
2017
Equity securities
Equity securities
3,328
463
(346)
3,445
2,084
162
1,082
3,328
113
Sensirion Annual Report 2018Financial Report 27.3 Financial Risk Management
The Group has exposure to credit risk, liquidity risk, and market risk arising from financial instruments which are further outlined below.
27.3.1 Risk management framework
The Company’s board of directors has overall responsibility for the establishment and oversight of the Group’s risk management frame-
work. The Group’s management is assisted in its oversight role by internal audits. Internal audits take place on both a regular and
ad-hoc basis, the results of which are reported to the Group’s management and the Company’s board of directors.
27.3.2 Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Group’s receivables from customers.
The carrying amount of financial assets represents the maximum credit exposure.
Cash and cash equivalents
The cash and cash equivalents are held with financial institution counterparties which are rated “A+” and “A–” respectively based on
Fitch ratings. At the reporting date of the current period these ratings haven’t undergone a change.
Trade and other receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also
considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in
which customers operate. For trade receivables without a significant financing component, the Group uses the simplified approach
under which IFRS 9 allows using an allowance matrix as a practical expedient for determining ECLs on trade receivables. Under this
approach, Sensirion calculates historical loss rates based on days past due buckets. For calculating historical trend information, Sen-
sirion uses average historical loss rates for the preceding three annual reporting periods. Loss rates are adjusted to the current eco-
nomic conditions and via macroeconomic overlay to consider forward-looking information.
The following table provides information about the exposure to credit risk and ECLs for trade receivables as at 31 December 2018:
In thousands of CHF
Current (not past due)
1-30 days past due
31-60 days past due
61-90 days past due
Total
Details of concentration of revenue are included in Note 7.
ECL rate
Gross carrying amount
trade receivables
Impairment allowance
Credit-impaired
31 December 2018
0.02 %
0.04 %
0.91 %
4.58 %
17,206
4,453
389
182
22,230
(3)
(1)
(3)
(83)
(90)
No
No
No
Yes
114
Sensirion Annual Report 2018Financial Report The maximum exposure to credit risk for trade receivables by geographic region was as follows.
In thousands of CHF
31 December 2018
31 December 2017
China
South Korea
Hong Kong
Germany
USA
Thailand
Japan
Switzerland
Other
Total
The Group maintains business relationships over a variety of geographical areas.
Comparative information under IAS 39
The ageing of trade and other receivables that were not impaired was as follows.
In thousands of CHF
Neither past due nor impaired
1-30 days past due
31-60 days past due
61-90 days past due
Total
3,908
3,771
3,584
3,381
2,155
2,093
1,412
365
1,471
3,091
7,943
3,119
3,232
1,786
1,543
1,290
2,394
3,673
22,140
28,071
31 December 2017
16,297
9,678
1,915
181
28,071
Movements in the loss allowance in respect of trade receivables
The movement in the loss allowance in respect of trade receivables during the year was as follows. Comparative amounts for 2017
represent the allowance account for impairment losses under IAS 39.
Loss allowance details
In thousands of CHF
Individual Impairments
Individual Impairments
Collective Impairments
2018
2017
Balance at 1 January under IAS 39
Adjustment on initial application of IFRS 9
Balance at 1 January under IFRS 9
Amounts written off
Net remeasurement of loss allowance
Balance at 31 December
3
11
14
–
76
90
6
6
(3)
–
3
–
–
–
–
–
115
Sensirion Annual Report 2018Financial Report Guarantees
The Group’s policy is to provide financial guarantees to subsidiaries. At 31 December 2018, the Company has issued a guarantee to certain
banks in respect of credit facilities granted to Sensirion AG in the amount of CHF 40,000 thousand (2017: CHF 40,000 thousand).
27.3.3 Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are
settled by delivering cash or another financial asset. The Group’s objective when managing liquidity is to ensure, as far as possible, that
it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
Within the frame of a rolling liquidity plan, Sensirion ensures that there is continuously sufficient liquidity to cover the short-term operational
needs. Within the liquidity plan, Sensirion includes cash and cash equivalents, lines of credit, and possibilities to increase share capital.
The Group also monitors the level of expected cash inflows on trade and other receivables together with expected cash outflows on
trade and other payables. At 31 December 2018, the expected cash flows from trade and other receivables maturing within two months
were CHF 5,024 thousand (2017: CHF 11,775 thousand). This excludes the potential impact of extreme circumstances that cannot
reasonably be predicted, such as natural disasters.
As part of the Group’s liquidity management, lines of credit are maintained. The unused lines of credit amount to CHF 40,000 thousand
as of 31 December 2018, to CHF 26,940 thousand as of 31 December 2017.
Credit lines used as of 31 December 2018 amount to CHF 0 thousand (31 December 2017: CHF 67,560 thousand).
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undis-
counted, and include contractual interest payments and exclude the impact of netting agreements.
In thousands of CHF
Carrying
amount
Total
2 months
or less
2-12
months
1-2
years
2-5
years
More than
5 years
Contractual cash flows
As of 31 December 2018
Non-derivative financial liabilities
Trade payables
Lease liabilities
8,802
8,802
8,802
11,365
12,745
302
Total non-derivative financial liabilities
20,167
21,547
9,104
–
1,419
1,419
–
3,184
3,184
–
4,063
4,063
–
3,777
3,777
As of 31 December 2017
Non-derivative financial liabilities
Trade and other payables
Bank loans
Lease liabilities
Total non-derivative financial liabilities
4,834
67,560
11,178
83,572
4,834
68,479
11,234
84,547
4,834
–
38,213
30,266
198
987
43,245
31,253
–
–
1,427
1,427
–
–
6,432
6,432
–
–
2,190
2,190
116
Sensirion Annual Report 2018Financial Report 27.3.4 Market risk
Market risk is the risk that changes in market prices – such as foreign exchange rates and interest rates – will affect the Group’s income
or the value of its holdings of financial instruments.
Currency risk
The functional currencies of the Group companies are in the currency of the local legislation. The Group is exposed to currency risk to
the extent that there is a mismatch between the currencies in which sales, purchases, and borrowings are denominated and the respec-
tive functional currencies of the Group companies. The main exposure arises from sales transactions that are denominated in USD and
EUR and where this deviates from the functional currency of the respective Group company.
Generally, cash flows generated by the underlying operations of the Group are primarily in USD, EUR, and CHF or in the currency of the
local legislation. The Group’s cash outflows are denominated mainly in CHF due to the significant amount of personnel costs generated
in Switzerland. To a certain extent, there is an economic hedge by sourcing activities in USD and EUR.
The summary quantitative data about the Group’s exposure to currency risk is as follows.
In thousands of CHF
As of 31 December 2018
Cash and cash equivalents
Trade receivables
Trade payables
Net statement of financial position exposure
As of 31 December 2017
Cash and cash equivalents
Trade and other receivables
Bank loans
Trade and other payables
Net statement of financial position exposure
USD
EUR
KRW
1,785
7,779
2,188
11,752
2,017
6,889
975
491
10,372
1,159
5,919
2,115
9,193
8,114
3,127
449
11,690
963
5,634
585
429
7,611
876
6,882
–
2,425
10,183
A reasonably possible strengthening (weakening) of above major currencies against all other currencies at 31 December would have
affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the
amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any
impact of forecast sales and purchases.
In thousands of CHF
As of 31 December 2018
EUR (10 % movement)
USD (10 % movement)
KRW (10 % movement)
As of 31 December 2017
EUR (10 % movement)
USD (10 % movement)
KRW (10 % movement)
Profit or loss
Equity, net of tax
Strengthening
Weakening
Strengthening
Weakening
1,449
5,323
–
2,980
5,952
–
(1,449)
(5,323)
–
(2,980)
(5,952)
–
1,449
5,323
2,313
2,980
6,001
2,594
(1,449)
(5,323)
(2,313)
(2,980)
(6,001)
(2,594)
117
Sensirion Annual Report 2018Financial Report The following significant exchange rates have been applied.
In CHF
Euro (EUR) 1
US Dollar (USD) 1
South-Korean WON (KRW) 1,000
Average rate
Year-end spot rate
2018
2017
2018
2017
1.1709
0.9873
0.9018
1.1131
0.9979
0.8760
1.1265
0.9850
0.8956
1.1691
0.9753
0.9266
Sensirion has no significant interest-bearing financial assets. Therefore, the income is not exposed to significant interest rate risk.
Furthermore, the tenure for fixing interest rates on financial liabilities are one year as maximum. Therefore, interest rate risk is not
considered to be significant for the Group.
28 Related Parties
Transactions with key management personnel
Key management personnel compensation comprised the following.
In thousands of CHF
Short-term employee benefits
Post-employment benefits
Share-based payment
Other long-term employee benefits
Total
2018
2,351
453
1,441
–
4,245
2017
2,112
323
247
22
2,704
Compensation of the Group’s key management personnel includes salaries, non-cash benefits, share-based payments, and contribu-
tions to a post-employment defined benefit plan.
29 Subsequent Events
No events took place between 31 December 2018 and 6 March 2019 that would require adjustments to the carrying amounts of the
assets or liabilities in these consolidated financial statements or would need to be disclosed here.
118
Sensirion Annual Report 2018Financial Report Auditor’s Report
Statutory Auditor’s Report
To the General Meeting of Sensirion Holding AG, Stäfa
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Sensirion Holding AG and its subsidiaries (the Group),
which comprise the consolidated statement of financial position as at 31 December 2018 and the consolidated
income statement, consolidated statement of profit or loss and other comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to
the consolidated financial statements, including a summary of significant accounting policies.
In our opinion the consolidated financial statements (pages 70 to 118) give a true and fair view of the consolidated
financial position of the Group as at 31 December 2018, and its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards
(IFRS) and comply with Swiss law.
Basis for Opinion
We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and Swiss
Auditing Standards. Our responsibilities under those provisions and standards are further described in the
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are
independent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss audit
profession, as well as the IESBA Code of Ethics for Professional Accountants, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Revenue recognition
Inventory valuation
Pension plan in Switzerland
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the consolidated financial statements of the current period. These matters were addressed in the context of our
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
1
119
Sensirion Annual Report 2018Financial Report Revenue recognition
Key Audit Matter
Our response
Revenue is the basis for evaluating the course of
business of the Group and is thus a focus area of
internal target setting and external expectations.
These expectations create potential pressure on
management to achieve the set targets, which
leads to an increased risk in revenue recognition,
in particular the risk that the accrual principle is
not correctly applied.
We analysed the processes set up to ensure a correct
application of the accrual principle. We identified
internal controls with regards to revenue recognition and
tested operating effectiveness of selected controls
applying a sampling method.
Furthermore, we performed, amongst others, the
following procedures:
— We evaluated the application of the accrual
principle as of 31 December 2018 on a sample
basis by comparing invoices to delivery papers and
assessing the effect of incoterms.
— We inspected a sample of credit notes issued after
year-end and evaluated whether the related
adjustments to revenue had been recognised in the
appropriate financial period.
— We assessed profit margins and deviation analyses
for significant product groups and geographical
markets, identifying significant or unusual
deviations to prior year and to our expectations. We
discussed such analyses with management and
where appropriate corroborated with additional
documentation.
— Additionally we identified transactions that deviated
from the standard processes, such as entries by
management or unusual counter-entries, for further
investigation and validated the existence and
accuracy of this population.
For further information on revenue recognition refer to the following:
— Note 5.1 to the consolidated financial statements
— Note 7 to the consolidated financial statements
Inventory valuation
Key Audit Matter
Our response
Inventory forms a significant part of the Group’s
assets, amounting to CHF 30.2 million as at
31 December 2018. The valuation of work in
progress, semi-finished and finished goods is
underlying management judgements with regards
to planned production capacities which impact
standard costs.
The valuation allowances are set up based on
historical experience and management’s
Our audit procedures in this area included, amongst
others:
— We challenged the Group’s calculation of
production costs. Relating to the allocation of
overhead costs we compared the key parameters
used in the calculation to underlying actual data,
and we evaluated underlying labour costs by
comparing actual rates to budget rates and the
deviations thereof.
2
120
Sensirion Annual Report 2018Financial Report
judgement on projected future sales and usage of
inventory items. This judgement directly affects the
carrying amount of inventories.
— We assessed the Group’s historical experience on
slow moving inventory items as compared to the
amounts used in the calculation of allowances, and
we evaluated consistency of application.
— We evaluated the Group’s controls on the valuation
of slow moving items by sample testing key controls
for operating effectiveness.
For further information on inventory valuation refer to the following:
— Note 5.5 to the consolidated financial statements
— Note 22 to the consolidated financial statements
Pension plan in Switzerland
Key Audit Matter
Our response
Sensirion maintains a pension plan for its employees
in Switzerland. Plan beneficiaries, their spouses and
children are insured against the financial
consequences of old age, death and disability by a
Swiss collective foundation. Sensirion changed from
a fully reinsured pension plan to a pension plan
without reinsurance of actuarial risks effective 1
January 2019 (which is the basis for the calculation
of the defined benefit obligation as at 31 December
2018).
The defined benefit obligation resulting from
Sensirion’s pension plan in Switzerland is calculated
based on a number of financial and demographic
assumptions. The most significant assumptions are
the discount rate, expected rates of salary and
pension increases, the interest rates on old age
savings accounts and longevity. In accordance with
Swiss regulations, Sensirion’s assumptions also
include the principle of risk sharing of the remaining
IAS 19 deficit between employer and employee. The
calculation of the employer’s share of the deficit is
based on, among other things, the history of the
pension cost split between Sensirion and its
employees.
Management determines these assumptions, which
involve judgement that has a significant impact on the
amount of the net defined benefit liability and cost
recognised related to the pension plan.
Our audit procedures in this area included, amongst
others:
— We assessed the completeness and accuracy of
personnel data underlying the actuary’s expert
report by testing the input data on a sample basis.
— Supported by our specialists we analysed the
conformity with IAS 19 of the allocation of the
remaining deficit between the employer and
employee by particularly taking into account the
change in the terms of the plan. Further, we tested
the consistent application of the risk sharing
methodology.
— We critically assessed the determination of the
employer’s share of the remaining deficit based on
Sensirion specific empirical information and
assessments. Furthermore, we challenged
management’s other key assumptions used in the
calculation of the actuary mandated by Sensirion. In
doing so, we examined the methodology used to
define the parameters and the consistency with
prior year and compared these parameters with the
range of observable market information.
— We used our own specialists to challenge the
actuarial calculation. In addition, we assessed the
competence and independence of the actuary
engaged by Sensirion.
For further information on the pension plan in Switzerland refer to the following:
— Note 5.2.6 to the consolidated financial statements
— Note 16 to the consolidated financial statements
3
121
Sensirion Annual Report 2018Financial Report
Other Information in the Annual Report
The Board of Directors is responsible for the other information in the annual report. The other information
comprises all information included in the annual report, but does not include the consolidated financial
statements, the stand-alone financial statements of the company, the remuneration report and our auditor’s
reports thereon.
Our opinion on the consolidated financial statements does not cover the other information in the annual report and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information in the annual report and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibility of the Board of Directors for the Consolidated Financial Statements
The Board of Directors is responsible for the preparation of the consolidated financial statements that give a true
and fair view in accordance with IFRS and the provisions of Swiss law, and for such internal control as the Board
of Directors determines is necessary to enable the preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Swiss law, ISAs and Swiss Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Swiss law, ISAs and Swiss Auditing Standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
—
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made.
— Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
4
122
Sensirion Annual Report 2018Financial Report
— Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
— Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely responsible
for our audit opinion.
We communicate with the Board of Directors or its relevant committee regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors or its relevant committee, we determine those
matters that were of most significance in the audit of the consolidated financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor’s report, unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an
internal control system exists, which has been designed for the preparation of consolidated financial statements
according to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.
KPMG AG
Juerg Meisterhans
Licensed Audit Expert
Auditor in Charge
Zurich, 6 March 2019
Patrick Biedermann
Licensed Audit Expert
KPMG AG, Badenerstrasse 172, PO Box, CH-8036 Zurich
KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss legal entity. All rights reserved.
5
123
Sensirion Annual Report 2018Financial Report
Financial Statements of Sensirion Holding AG
Income Statement
In thousands of CHF, for the year ended 31 December
Revenue from royalties
Total income
Personnel expenses
Other operating expenses
Impairment losses on investments
Amortization on intangible assets
Financial income
Financial expense
Income taxes
Total expenses
Note
1.7
2.5
2.6
2.6
2018
5,471
5,471
(404)
(8,808)
–
(31)
1,090
(955)
(13)
(9,121)
2017
5,203
5,203
(426)
(1,925)
(5,600)
(17)
502
(185)
(216)
(7,867)
Profit (loss) for the year
(3,650)
(2,664)
124
Sensirion Annual Report 2018Financial Report Balance Sheet
In thousands of CHF
Assets
Cash and cash equivalents
Trade receivables
– from companies in which the entity holds an investment
Other short-term receivables
– from companies in which the entity holds an investment
Prepaid expenses and accrued income
Total current assets
Financial assets
Investments
Intangible assets
Total non-current assets
Total assets
Liabilities
Trade payables
– to third parties
Loans and borrowings
Other liabilities
– to third parties
Accrued expenses
Total current liabilities
Equity
Share capital
Participation certificate capital
Legal capital reserves
– Reserves from capital contributions
– Other capital reserves
Legal retained earnings
– General legal retained earnings
– Reserves for treasury shares
Voluntary retained earnings
– Retained earnings brought forward
– Profit (loss) for the year
Total equity
Total liabilities and equity
Note 31 December 2018
31 December 2017
2.1
2.2
2.4
19,742
53
7
130
19,932
98,256
17,013
72
115,341
135,273
121
–
77
113
311
1,514
–
112,489
86
603
2,510
21,410
(3,650)
134,962
135,273
2
276
–
–
278
57,270
17,426
103
74,799
75,077
–
32,000
19
996
33,015
1,149
97
16,205
86
603
2,310
24,276
(2,664)
42,062
75,077
125
Sensirion Annual Report 2018Financial Report
Notes to Financial Statements of Sensirion Holding AG
Principles
1
1.1 General Aspects
These financial statements were prepared according to the principles of the Swiss Law on Accounting and Financial Reporting
(32nd title of the Swiss Code of Obligations). Where not prescribed by law, the significant accounting and valuation principles applied
are described below. It should be noted that to ensure the company’s going concern, the company’s financial statements may be influ-
enced by the creation and release of hidden reserves.
1.2 Financial Assets
Financial assets include long-term loans. Loans granted in foreign currencies are translated at the rate at the balance sheet date,
whereby unrealized losses are recorded but unrealized profits are not recognized. Investments with a long-term investment purpose and
less than 20 % capital rights are considered financial assets. Investments with long-term investment purpose with more than 20 %
capital rights are considered investments.
Investments
1.3
Investments are accounted for at costs less any impairment losses.
1.4 Treasury Shares
Treasury shares are held in the subsidiary Sensirion AG.
1.5 Share-Based Payments
The purpose of the Bonus and Restricted Share Plan (see Note 17 of the Consolidated Financial Statements on pages 97 to 99) is to
provide eligible employees with an opportunity to participate in the creation of long-term shareholder value of the Sensirion Group.
Members of the Executive Committee shall be awarded their bonus in the form of an equity bonus only, not having the right to choose
between a cash bonus and an equity bonus. Except for exceptions as determined by the Executive Committee, eligible employees who
are awarded a bonus from time to time may choose between
(a) payment of the bonus in cash (the Cash Bonus); or
(b) payment of the bonus in shares of Sensirion Holding AG (Shares) and additional restricted share units (RSUs), in each case
subject to the terms, conditions and restrictions set forth in the plan.
An eligible employee can only elect to receive either the full bonus in the form of a Cash Bonus or an Equity Bonus. The number of Shares
to be awarded shall be determined by dividing the bonus amount by an average price of the Shares as quoted on the SIX Swiss Exchange
over a period of time prior to the date of allocation of the Shares as determined by Sensirion Holding AG in its sole discretion, rounded down
to the nearest full number of Shares. The number of RSUs to be awarded shall be determined by Sensirion Holding AG in its sole discretion.
In addition, in 2018, Sensirion Holding AG established the one-time IPO Loyalty Share Program (see Note 17 of the Consolidated Financial
Statements on pages 97 to 99).
1.6 Foregoing a Cash Flow Statement and Additional Disclosures in the Notes
As Sensirion Holding AG has prepared its consolidated financial statements in accordance with a recognized accounting standard
(IFRS), it has decided to forego presenting additional information on interest-bearing liabilities and audit fees in the notes as well as a
cash flow statement in accordance with the law.
126
Sensirion Annual Report 2018Financial Report
1.7 Revenue from Royalties
Sensirion Holding AG charges their subsidiaries royalties. The royalties are based on the revenue that is generated by the subsidiaries
using the patented technology of Sensirion Holding AG.
2 Disclosure on Balance Sheet and Income Statement Items
2.1 Financial Assets
In thousands of CHF, for the year ended 31 December
2018
Clarity Movement, Co.
Other financial assets
Loans to subsidiaries
Total financial assets
1,126
300
96,830
98,256
2017
1,486
–
55,784
57,270
Subordinated loans to subsidiary Sensirion Automotove Solutions AG amount to CHF 26,721 thousand.
Investments
2.2
In thousands of CHF, for the year ended 31 December
2018
2017
a) Direct investments
Company, location
Sensirion AG, Stäfa (Switzerland)
Sensirion China Co. Ltd., Shenzhen
(China)
Sensirion Inc., Chicago (USA)
Sensirion Japan Co. Ltd., Tokyo (Japan)
Sensirion Korea Co. Ltd., Anyang-Si
(South Korea)
Sensirion Taiwan Co. Ltd., Hsinchu
(Taiwan)
Sensirion Automotive Solutions AG,
Stäfa (Switzerland)
Purpose
Production, sales,
development
Sales
Sales
Sales
Sales
Share capital
in %
Share capital
in %
CHF
2,000,000
100
CHF
2,000,000
100
RMB
USD
JPY
1,260,000
660,000
25,000,000
100
100
100
RMB
USD
JPY
1,260,000
660,000
25,000,000
100
100
100
KRW
100,000,000
100
KRW
100,000,000
100
Sales
TWD
25,000,000
100
TWD
25,000,000
100
IRsweep AG, Stäfa (Switzerland)
Development
CHF
CHF
100,000
100
CHF
166,667
33
CHF
100,000
166,667
100
33
Production, sales,
development
b) Significant indirect investments
Sensirion Automotive Solutions Inc.,
Detroit (USA)
Sensirion Automotive Solutions Korea
Co., Ltd., Seoul (South Korea)
Sensirion Automotive Solutions
(Shanghai) Co., Ltd., Shanghai (China)
Production, sales,
development
Production, sales,
development
Avantama AG, Stäfa (Switzerland)
Production, sales
Sales
USD
250,000
100
USD
250,000
100
KRW 15,000,000,000
100
KRW 15,000,000,000
100
RMB
CHF
8,504,000
100
RMB
8,504,000
165,873
10
CHF
154,776
100
10
127
Sensirion Annual Report 2018Financial Report Treasury Shares and Treasury Participation Certificates
2.3
Held by subsidiary Sensirion AG
In thousands of CHF, for the twelve months ended 31 December
Treasury shares nom. CHF 100
Stock at 1 January
Book value at 1 January
Stock split in March 2018
Book value after stock split in March
Purchases
Purchase price
Sales
Selling price
Conversion of participation certificates into shares
Conversion price of participation certificates into shares
Stock at 31 December
Book value at 31 December
Treasury participation certificates nom. CHF 0.10
Stock at 1 January
Book value at 1 January
Purchases
Purchase price
Sales
Selling price
Conversion of participation certificates into shares
Conversion price of participation certificates into shares
Stock at 31 December
Book value at 31 December
2018
82
1,735
82,000
1,735
–
–
–
–
159,351
774
241,351
2,509
276,831
575
3,107
66
(120,587)
133
(159,351)
(774)
–
–
2017
319
1,341
–
–
66
1,513
303
1,119
–
–
82
1,735
45,973
675
310,258
1,287
(79,400)
(1,387)
–
–
276,831
575
2.4 Legal Capital Reserves
The audit for the tax-accepted capital contribution reserves of the share capital increase of March 2018 will take place in the following
year after the Annual General Meeting.
The increase of the reserves from capital contributions results from the IPO and have not been confirmed by the Federal Tax Authority
yet. Therefore, the reserves from capital contributions may still change and needs to be considered as provisional.
2.5 Other Operating Expenses
Other operating expenses include expenses related to the IPO.
128
Sensirion Annual Report 2018Financial Report 2.6 Financial Result
In thousands of CHF, for the year ended 31 December
Financial income
Financial expenses
Total
2018
1,090
(955)
135
2017
502
(185)
317
The financial income of CHF 1,090 thousand (prior year: CHF 502 thousand) comes mainly from interest from the loans to subsidiaries.
3
Other Information
Full-Time Equivalents
3.1
Sensirion Holding AG has no employees.
3.2 Collateral Provided for Liabilities of Third Parties
Collateral provided for liabilities of third parties amount to CHF 40,000 thousand (prior year: CHF 40,000 thousand). These are guaran-
tees issued on behalf of subsidiaries.
3.3 Letter of Comfort
Sensirion Holding AG has undertaken to provide Sensirion Automotive Solutions AG (as a supplier to a customer) with the necessary
financial resources on an ongoing basis. The obligation to provide financial resources amounts to EUR 4,500 thousand per calendar
year and to a maximum total amount of EUR 45,000 thousand during the term of the contract. This contract may be terminated for the
first time on 31 December 2046 with 12 months' notice.
3.4 Participation Certificates for Members of the Board and Employees
Value in thousands of CHF
2018
Allocated to the members of the Board of Directors
Allocated to employees (previous year including the Executive Committee)
Total
Quantity
Value
Quantity
–
–
–
–
–
–
7,312
110,796
118,108
3.5 Equity-Settled Share-Based Payment Transactions
Value in thousands of CHF
Allocated shares to employees excluding the EC
Allocated RSUs to employees excluding the EC
Total
Quantity
50,593
509,899
560,492
2018
Value
2,133
21,492
23,625
Quantity
–
–
–
2017
Value
133
2,020
2,153
2017
Value
–
–
–
129
Sensirion Annual Report 2018Financial Report 3.6 Shares Held by Members of the Board of Directors and the Executive Committee
As of 31 December 2018, the members of the Board of Directors and the Executive Committee (including related parties) held the following
number of shares and RSUs.
Board of Directors
Dr. Moritz Lechner, Co-Chairman
Dr. Felix Mayer, Co-Chairman1
Ricarda Demarmels, member
Heinrich Fischer, member
Markus Glauser, member
Total Board of Directors
Executive Committee
Dr. Marc von Waldkirch, CEO
Dr. Johannes Bleuel, VP Operations
Matthias Gantner, CFO
Heiko Lambach, VP Human Resources
Dr. Andrea Orzati, VP Sales & Marketing
Dr. Johannes Schumm, VP Research & Development
Total Executive Committee
Shares
RSUs
871,900
871,900
–
103,381
24,740
1,871,921
–
–
–
–
–
–
Shares
RSUs2
31,724
8,773
8,277
8,422
12,691
5,690
75,577
9,772
4,368
3,570
3,937
6,060
2,905
30,612
1 Related parties: Including shares held by Fondation des Fondateurs, Zurich, Switzerland.
2 Includes RSUs from the Bonus and Restricted Share Plan and the IPO Loyalty Share Program (see Note 1.5 on page 126).
3.7 Significant Shareholders
As of 31 December 2018, the following shareholders held more than 3 % of the shares.
Direct holder
Moritz Lechner, Uerikon, Switzerland; Felix Mayer, Stäfa, Switzerland;
Fondation des Fondateurs, Switzerland; 7-Industries Holding B.V., Amsterdam,
Netherlands; EGS Beteiligungen AG, Zurich, Switzerland; Sensirion Holding AG1
Chase Nominees Ltd.2
Gottlieb Knoch, Zug, Switzerland
T. Rowe Price Associates, Inc., Baltimore, United States
Davent Holding AG, Zug, Switzerland3
Shares
% of
voting rights
5,260,164
34.7 %
956,005
768,666
580,128
552,200
6.3 %
5.1 %
3.8 %
3.7 %
1 The beneficial owner of 7-Industries Holding B.V. is Mrs. Ruthi Wertheimer, Herzliya, Israel. The beneficial owner of EGS Beteiligungen AG, Zurich,
Switzerland, is the Ernst Göhner Stiftung, Zug, Switzerland. The shareholders act in concert within the meaning of article 121 FMIA by virtue of
a shareholders' agreement, as a result of which they, together with the Company, act in concert. Moritz Lechner, Felix Mayer, Fondation des Fondateurs,
7-Industries Holding B.V. and EGS Beteiligungen AG together hold 33.2 % of the voting rights.
2 Pursuant to the share register holding shares as nominee for third party beneficial owners.
3 The beneficial owner of Davent Holding AG is Dr. Thomas Knecht, Zug, Switzerland.
130
Sensirion Annual Report 2018Financial Report
4
Significant Events After the Balance Sheet Date
There are no significant events after the balance sheet date which could impact the book value of the assets or liabilities, or which should
be disclosed here.
Proposed Appropriation of Available Earnings
In thousands of CHF
Retained earnings brought forward
Net profit (loss) for the year
Available earnings
The Board of Directors proposes to the General Meeting of Shareholders the following appropriation of available earnings.
In thousands of CHF
Balance to be carried forward
2018
21,410
(3,650)
17,760
2018
17,760
131
Sensirion Annual Report 2018Financial Report Auditor’s Report
Statutory Auditor’s Report
To the General Meeting of Sensirion Holding AG, Stäfa
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Sensirion Holding AG, which comprise the balance sheet as at
31 December 2018, and the income statement for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.
In our opinion the financial statements (pages 124 to 131) for the year ended 31 December 2018 comply with
Swiss law and the company’s articles of incorporation.
Basis for Opinion
We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Our responsibilities under
those provisions and standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the entity in accordance with the provisions of Swiss law
and the requirements of the Swiss audit profession and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Report on Key Audit Matters based on the circular 1/2015 of the Federal Audit Oversight Authority
Valuation of investments and long-term loans to subsidiaries
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
132
1
Sensirion Annual Report 2018Financial Report Valuation of investments and long-term loans to subsidiaries
Key Audit Matter
Our response
The financial statements of Sensirion Holding AG
as per 31 December 2018 include investments in
subsidiaries in the amount of CHF 17.0 million and
long-term loans to subsidiaries in the amount of
CHF 96.8 million (thereof CHF 26.7 million
subordinated). The company annually reviews
investments and long-term loans to subsidiaries for
impairment.
In performing the impairment tests, management
determined the recoverable amounts using a
discounted cash flow model.
The impairment assessment of investments and
long-term loans to subsidiaries requires significant
management judgment, in particular in relation to
the forecast cash flows, future growth rates and the
discount rates applied, and is therefore a key area
that our audit was concentrated on.
Our audit procedures included, amongst others,
evaluating the methodical and mathematical accuracy of
the model used for the impairment tests as well as the
appropriateness of management’s assumptions.
This comprised:
— Retrospectively assessing the accuracy of
management’s past projections by comparing
historical forecasts to actual results.
— Agreeing forecasts used in the impairment tests to
current expectations of management and the
business plans approved by the Board of Directors.
— Challenging the robustness of key assumptions on
a sample basis, including forecast cash flows, long-
term growth rates and discount rates, based on our
understanding of the commercial prospects of the
respective investments and comparison with
publicly available data if available.
For further information on investments and long-term loans to subsidiaries refer to the following:
— Note 2.1 to the financial statements
— Note 2.2 to the financial statements
Responsibility of the Board of Directors for the Financial Statements
The Board of Directors is responsible for the preparation of the financial statements in accordance with the
provisions of Swiss law and the company’s articles of incorporation, and for such internal control as the Board of
Directors determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the entity or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Swiss law and Swiss Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with Swiss law and Swiss Auditing Standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
2
133
Sensirion Annual Report 2018Financial Report —
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made.
— Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the entity’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the entity to cease to continue as a going concern.
We communicate with the Board of Directors or its relevant committee regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors or its relevant committee, we determine those
matters that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report, unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an
internal control system exists, which has been designed for the preparation of financial statements according to
the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and the
company’s articles of incorporation. We recommend that the financial statements submitted to you be approved.
KPMG AG
Juerg Meisterhans
Licensed Audit Expert
Auditor in Charge
Zurich, 6 March 2019
Patrick Biedermann
Licensed Audit Expert
KPMG AG, Badenerstrasse 172, PO Box, CH-8036 Zurich
KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss legal entity. All rights reserved.
3
134
Sensirion Annual Report 2018Financial Report
Shareholder Information
SENS
SENSI.S
SENS.SW
40,670,512
CH 040 670512 6
31 December
SIX Swiss Exchange
CHF
22 March 2018
15,140,172
CHF 0.10
IFRS (International Financial Reporting Standard)
Annual general meeting
2019 half-year results and interim report
Valor symbol
Reuters symbol
Bloomberg symbol
Valor number
ISIN
End of fiscal year
Exchange
Trading currency
Listed since
Number of issued shares
(as recorded in the commercial register)
Nominal value
Accounting standard
Financial Calendar
14 May 2019
21 August 2019
Contact
For further information, please contact:
Andrea Wüest
Director Investor Relations
Phone +41 44 927 11 40
andrea.wueest@sensirion.com
135
Sensirion Annual Report 2018 Disclaimer
Certain statements in this document are forward-looking statements, including, but not limited to, those using words such as “believe”,
“assume”, “expect” and other similar expressions. Such forward-looking statements are based on assumptions and expectations and,
by their nature, involve known and unknown risks, uncertainties, and other factors that could cause actual results, performance, or
achievements to differ materially from those expressed or implied by the forward-looking statements. Such factors include, but are not
limited to, future global economic conditions, changed market conditions, competition from other companies, effects and risks of new
technologies, costs of compliance with applicable laws, regulations, and standards, diverse political, legal, economic and other condi-
tions affecting markets in which Sensirion operates, and other factors beyond the control of Sensirion. In view of these uncertainties,
you should not place undue reliance on forward-looking statements. Sensirion disclaims any intention or obligation to update any for-
ward-looking statements, or to adapt them to future events or developments.
Certain financial data included in this document consist of “non-IFRS financial measures”. These non-IFRS financial measures may not
be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other
financial measures determined in accordance with IFRS. As a result, you are cautioned not to place undue reliance on any non-IFRS
financial measures and ratios included herein.
This document is not an offer to sell, or a solicitation of offers to purchase, any securities.
Imprint
Publisher
Sensirion AG
Laubisrütistrasse 50
8712 Stäfa
Switzerland
Phone +41 44 306 40 00
Fax +41 44 306 40 30
info@sensirion.com
www.sensirion.com
Concept and Editorial
Sensirion AG
Design and Implementation
Sensirion AG
136
Sensirion Annual Report 2018 Registered Offices and Branches
Switzerland
Sensirion Automotive Solutions AG
Laubisrütistrasse 50
8712 Stäfa
Switzerland
Phone +41 44 306 40 00
Fax
+41 44 306 40 30
info@sensirion-automotive.com
www.sensirion-automotive.com
United States
Sensirion Automotive Solutions Inc.
Overseas Sales Team in Detroit Branch
44765 Ellery Ln
Novi, MI 48377
United States
Phone +1 248 308 9149
info-us@sensirion-automotive.com
www.sensirion-automotive.com
South Korea
Sensirion Automotive Solutions Korea Co., Ltd.
14F Hanshin IT Tower, 272, Digital-ro
Guro-ro, Seoul, 08389
South Korea
Phone +82 2 2108 7899
+82 2 2108 7999
Fax
info-kr@sensirion-automotive.com
www.sensirion-automotive.com
China
Sensirion Automotive Solutions (Shanghai) Co., Ltd.
4F, Building 2, No. 800 Jiuxin Highway, Jiuting Town,
Songjiang District, Shanghai 201615
P.R. China
Phone +86 21 5763 8872
+86 21 6769 0604
Fax
info-cn@sensirion-automotive.com
www.sensirion-automotive.com
Switzerland
Sensirion AG/Sensirion Holding AG
Laubisrütistrasse 50
8712 Stäfa
Switzerland
Phone +41 44 306 40 00
Fax
+41 44 306 40 30
info@sensirion.com
www.sensirion.com
China
Sensirion China Co., Ltd.
Room 1706, Tower 1
Excellence Meilin Center Plaza (Excellence City)
ZhongKang Road Shangmeilin
Futian District, Shenzhen 518049
P.R. China
Phone +86 755 8252 1501
Fax
+86 755 8252 1580
info-cn@sensirion.com
www.sensirion.com/cn
United States
Sensirion Inc.
11 East Adams, Suite 220
Chicago, IL 60603
United States
Phone +1 312 690 5858
info-us@sensirion.com
www.sensirion.com
Japan
Sensirion Japan Co., Ltd.
Takanawa Kaneo Bldg. 4F
3-25-22, Takanawa Minato-ku, Tokyo
108-0074 Japan
Phone +81 3 3444 4940
Fax
+81 3 3444 4939
info-jp@sensirion.com
www.sensirion.com/jp
South Korea
Sensirion Korea Co., Ltd.
14056, #1809-#1813 Gumkang Penterium A,
282, Hagui-Ro, Dongan-Gu
Anyang-Si, Gyeonggi-Do
South Korea
Phone +82 31 337 7700~3
Fax
info-kr@sensirion.com
www.sensirion.com/kr
+82 31 337 7704
Taiwan
Sensirion Taiwan Co., Ltd.
Rm. 2, 15F, No. 223, Fuxing 2nd Rd
Zhubei City
Hsinchu County, 30271
Taiwan, R.O.C.
Phone +886 3 5506701
Fax
+886 3 5506703
info@sensirion.com
www.sensirion.com