Annual Report
2020
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 manu-
facturing sophisticated and cost-effective environ-
mental 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 more than 20 years of ex-
perience in creating best-in-class sensor solutions
for a variety of demanding customer applications,
including those in which the sensors perform
mission-critical functions.
1
Essentials
Key Figures
Letter to the Shareholders
Strategy
Annual Report
Markets
Sensirion worldwide
Hot topics
Sustainability
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
4
11
15
18
22
24
42
60
84
102
107
155
157
164
Table of Contents Sensirion Annual Report 2020
3
Key Figures
REVENUE
(in CHF million)
253.7
NUMBER
OF EMPLOYEES (FTE)
as of Dec 31
174.8
171.0
783
796
788
2018
2019
2020
2018
2019
2020
REVENUE BY MARKET
2020 (2019)
REVENUE BY REGION
2020 (2019)
6 % (8 %)
28 % (20 %)
22 % (30 %)
28 %
(41 %)
44 %
(46 %)
44 % (21 %)
28 % (34 %)
Automotive
Medical
Industrial
Consumer
APAC
EMEA
Americas
4
Sensirion Annual Report 2020 Key Figures
253.7
57.6 %
27.1 %
REVENUE
in CHF million
GROSS MARGIN
ADJUSTED
EBITDA MARGIN
Key Figures Sensirion Annual Report 2020
5
Successful ramp-ups
of new product families
CO2 and PM2.5
Strong COVID-19-related
increase in demand for
sensors for ventilators
Long-term growth
based on new product
families and new
business areas
6
Sensirion Annual Report 2020 Key Figures
Key Figures
Consolidated, in millions of CHF
31 December 2020
in % 31 December 2019
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
48.4 %
253.7
146.2
57.6 %
51.1
2,651.1 %
20.1 %
41.9
1,625.9 %
16.5 %
2.73
64.1
419.9 %
25.3 %
68.8
236.7 %
27.1 %
53.3
(14.2)
39.1
171.0
91.8
53.7 %
(2.0)
(1.2 %)
(2.7)
(1.6 %)
(0.18)
12.3
7.2 %
20.4
12.0 %
25.7
(17.2)
8.6
31 December 2020
31 December 2019
269.2
73.1
196.1
78.2
215.5
59.3
156.2
48.0
Number of employees (FTE)
788
(1.0 %)
796
1 Defined as profit (loss) for the period excluding net interest expenses, income taxes, depreciation, and amortization.
2 Defined as EBITDA adjusted for net finance costs excluding net interest expenses, share of profit or loss of equity-accounted investees, net of tax,
and the non-recurring expense from the IPO Loyalty Share Program (including social security expenses).
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, excluding M&A activities.
5 Defined as the sum of cash and cash equivalents less loans and borrowing less lease liabilities (current and non-current).
Key Figures Sensirion Annual Report 2020
7
8
Sensirion Annual Report 2020
Sensirion Annual Report 2020
9
Kapiteltitel Sensirion Annual Report 2020 From left: Moritz Lechner (Co-Chairman), Marc von Waldkirch (CEO) and
Felix Mayer (Co-Chairman)
10
Sensirion Annual Report 2020 Kapiteltitel Dear Shareholders
The coronavirus year 2020 proved to be very multi-faceted for Sensirion: despite many COVID-19-related
restrictions and challenges, additional opportunities opened for us. On the one hand, demand for our
sensor solutions was very robust, which can be attributed to the successful ramp-ups of our new product
families (CO2, PM2.5) and a continued strong market diversification. On the other hand, we recorded a
COVID-19-related strong increase in demand for sensors for ventilators. This enabled us to raise our
outlook for 2020 twice, in June and in December. We are also confident about the coming years: the new
product families in the environmental area and numerous ongoing projects will support further growth.
In addition, we have been able to set the course for new business areas in recent months that should
contribute to the company’s longer-term growth after a few years of development.
Strong revenue and profitability growth
Consolidated revenue amounted to CHF 253.7 million (+48.4 % compared to the prior-year period,
+53.5 % organic, −5.1 % foreign currency effects). Of this amount, CHF 77.0 million (prior-year period
CHF 7.0 million) came from gas flow sensors for ventilators. Even without this one-time COVID-19-related
effect, the pandemic year showed good growth of +7.4 % (+12.5 % organic, −5.1% foreign currency
effects) compared to the previous year. The gross margin improved to 57.6 %, and the adjusted EBITDA
margin reached a high 27.1 %, both thanks to economies of scale from the one-time additional business
in the medical sector. The operating profit was CHF 51.1 million, resulting in a net profit for the period
of CHF 41.9 million. Operating cash flow amounted to CHF 53.3 million.
Sales growth in all markets, the medical sector benefits from a strong one-time effect
As a result of the COVID-19-related additional business in the medical sector, the breakdown of consoli-
dated sales by market changed significantly compared to the previous year (Automotive 21.7 %, Medical
44.3 %, Industrial 28.1 %, Consumer 5.9 %). In terms of geographic distribution, the Americas and Asia
Pacific grew at the expense of EMEA (Asia Pacific 43.7 %, EMEA 27.8 %, Americas 28.5 %).
The automotive business recorded revenue growth of 7.5 % to CHF 55.2 million, with two offsetting devel-
opments: the new tier 1 and module business recorded strong sales growth thanks to the robust ramp-up
of a particulate matter (PM2.5) sensor project in South Korea. In addition, the successful sales launch of
the PM2.5 sensor represents an important milestone in our ambition to become a leading module and
tier 1 supplier in the automotive market. In contrast, the existing components business with humidity and
flow sensors suffered from the pandemic-related decline in demand as well as from temporary customer
factory closures in the second quarter. However, we saw the first signs of a recovery in demand in this
area in the final months of the reporting year.
In 2020, the medical market was strongly influenced by the COVID-19 pandemic. Revenue grew by 219.7 %
to CHF 112.3 million. This increase is primarily a result of higher sales of gas flow sensors for ventilators,
resulting in revenue of CHF 77.0 million (previous year CHF 7.0 million). Shortly after the pandemic out-
break in spring, the demand for sensors for ventilators multiplied within weeks. Due to our high market
share in ventilator sensors, Sensirion was aware of its particular responsibility in this pandemic towards
customers and society from the very beginning. A dedicated task force worked at full stretch to increase
Letter to the Shareholders Sensirion Annual Report 2020
11
production capacity more than tenfold in record time. Thanks to the great dedication and enthusiasm of
numerous employees from all departments, we managed to cope with this despite all the coronavirus-
related restrictions. The peak in sensor shipments for ventilators occurred in the second and third
quarters. We expect demand to normalize during the first quarter of 2021.
In the broadly diversified industrial market, revenue amounted to CHF 71.2 million (+1.2 % compared to
the previous year). In this market, too, newly launched products in the field of environmental sensors
were able to compensate for a pandemic-related decline in demand in specific market areas. In the
household appliances market, we primarily benefited from growth in CO2 and PM2.5 sensing. Several key
customers finalized their product designs based on our new product families launched in 2018 and
started manufacturing. In contrast, sales in the gas meter market, which saw COVID-19-related factory
closures by our customers in the second quarter, declined.
In the highly fragmented consumer market, we increased sales by 5.3 % to CHF 14.9 million. The growth is
attributable to new projects with humidity sensors and robust business with the established portfolio. In
Asia in particular, important customers launched new products using our humidity sensor.
Strategic progress in the environmental sensor sector
The expansion of our environmental sensor portfolio remains an essential pillar of our growth strategy
with the goal of achieving market leadership in the environmental sensor market. In this respect, we were
able to reach some significant milestones in 2020.
In addition to the CO2 and PM2.5 sensor families already mentioned, we successfully started the produc-
tion of a novel formaldehyde sensor at the end of the year. Formaldehyde is an organic gas that often
outgases indoors from building materials and furniture and can be carcinogenic even at low concentra-
tions. Our new sensor shows lower cross-sensitivity to other gases that are often found indoors. It is the
first sensor that is based on the electrochemical sensor technology we acquired in summer 2019. This
sensor was developed and brought to production readiness within a record-breaking 15 months to meet
an important lead customer’s timeline. The broad launch is planned for spring 2021. In addition, we
launched a first environmental combo module in 2020 that enables measurement of particulate matter,
humidity and temperature as well as VOC and NO2 levels, all in the same housing. Customers have already
launched initial product designs using this combo sensor.
Based on the numerous ongoing projects and the response to the new product families in all markets,
we are confident for the coming years.
New production site in Debrecen, Hungary
To meet the growing demand for our sensors, we are expanding our production capacity with a new site
in Debrecen, eastern Hungary. We chose Hungary because of its proximity to our customers in Europe, the
good educational level of future employees and the support provided by regional partners. The building
12
Sensirion Annual Report 2020 Letter to the Shareholders
will be realized and financed by a local “build-to-suit” partner. We have signed a long-term lease agree-
ment. The groundbreaking ceremony took place at the end of June 2020, and we expect construction to be
completed and manufacturing ready to start by the end of 2021. Our current manufacturing sites in
Switzerland and Asia and our local employees will not be adversely affected by this expansion.
Securing longer-term growth potential with technology acquisitions
In recent months, we have concluded several longer-term technology acquisitions and investments to
secure the company’s longer-term growth potential.
In February 2021, we finalized the acquisition of the Dutch micro gas chromatography company Qmicro
in Enschede, The Netherlands. During the past years, the founder-managed company with 16 employees
very successfully developed a compact and highly efficient micro gas chromatography for the continuous
analysis of gas compositions for environmental monitoring and for applications in the gas market. The
acquisition will allow us to expand our portfolio of gas sensor solutions to the high-precision sector,
offering customers the full range from low-cost components to high-precision analyzers. The acquired
business will continue to operate under the same management and the current brand as a new Sensirion
business unit.
We also invested in two promising start-ups in Switzerland: Lumiphase develops new optical, CMOS-
compatible photonic technology using new materials. With the investment in Lumiphase, we secured the
exclusive rights to these materials for potential sensor applications in our markets. MaxWell Biosystems,
a Zurich-based ETH start-up, develops single-use sensing chips for cell characterization in drug develop-
ment. By investing in MaxWell Biosystems, we are securing greater insight into this exciting new sensing
area. Both investments support our longer-term technology pipeline.
CO2 monitors for schools in Zurich
As part of a COVID-19 charity campaign to benefit schools in the canton of Zurich, Sensirion equipped
more than 2,500 classrooms with specially designed CO2 monitors. CO2 is a reliable indicator of good
indoor air quality. The sensors are designed to alert classes and teachers when to ventilate classrooms
to minimize the risk of infection by aerosols using a simple traffic light system. We are proud to make a
small contribution to helping to prevent another pandemic-related closure of schools.
New Board member proposed for Annual General Meeting 2021
As part of its long-term succession planning and renewal of the Board, the Board of Directors will nomi-
nate Anja König for election at the upcoming Annual General Meeting 2021. This will increase the number
of Board members to seven for one year, as Heinrich Fischer will reach the extended age limit for
members of the Board of Directors in 2022. Anja König has broad experience in strategic investments and
acquisitions and deep insight into the Swiss startup scene. She will be able to provide Sensirion with
significant support in the further development of strategic collaborations.
Letter to the Shareholders Sensirion Annual Report 2020
13
Change in accounting standard to Swiss GAAP FER
The Board of Directors has decided to change the Group’s accounting standard from IFRS to Swiss GAAP
FER with a transition date as of 1 January 2020 as per the next interim consolidated financial statements
as at and for the six months ending 30 June 2021. Swiss GAAP FER is a recognized, comprehensive, and
less granular set of accounting standards that will allow the Group to continue publishing high-quality and
transparent financial reports in compliance with the requirement to present a true and fair view.
Outlook
In our view, the global economic situation remains fragile at the beginning of 2021 and visibility is low in
view of the pandemic and geopolitical challenges. We currently see demand picking up in all markets and
promising signs of recovery, hoping for a foreseeable end to the COVID-19 pandemic. However, given the
tight availability of semiconductor products worldwide, we also believe that some of the current demand
is for inventory build-up and as a result could subside in a few months. In the ventilator market, the pan-
demic-related increase in demand should fully normalize by the end of Q1 2021.
Assuming unchanged foreign currency exchange rates, we expect full-year 2021 consolidated revenue
of CHF 226-245 million (FY 2020 CHF 253.7 million), of which approximately CHF 15 million (FY 2020
CHF 70 million) still comes from the COVID-19-driven ventilator sensor business. This represents a decline
of 3-11 % compared to 2020. Adjusted for the one-off ventilator business, a strong sales growth of 15-25 %
results. We expect the gross margin to remain stable at 52-55 % and the EBITDA margin at 18-22 %.
Based on progress in key R&D projects, we also confirm our medium-term annual sales growth target of
10-15 %. We will discuss our growth strategy in more detail at our Capital Markets Day on 25 March 2021.
Special thanks to the employees
We would like to express our sincere thanks to all Sensirion employees for their extraordinary commit-
mentin these difficult times. The outstanding commitment of many people involved, our firmly anchored
corporate culture, and our team spirit enabled us to turn short-term challenges into opportunities and to
realize them successfully. We would also like to thank you, our valued shareholders, for your trust and
your commitment to long-term innovation.
Moritz Lechner
Felix Mayer
Marc von Waldkirch
Co-Chairman of the Board
Co-Chairman of the Board
CEO
14
Sensirion Annual Report 2020 Letter to the Shareholders
Strategy
Foster our unique company culture called “SensiSpirit”
Our company culture “SensiSpirit” is based on an entrepreneurial mindset, dedicated to long-term
innovation, and built by exceptional people. To remain innovative and agile, we aim to continue recruiting
and attracting top talents in all fields. We intend to continue fostering our award-winning company culture
which facilitates hiring, strengthens employee retention, and contributes to creating the ideal environ-
ment for innovation.
Drive technology and cost leadership in our core markets humidity and flow
We aim to continue strengthening our market leadership in humidity and flow sensing across our diverse
end markets and applications. In those applications for which we already have high market shares, we
intend to strengthen our strong market position through cost and technology leadership. In other appli-
cations, we aim to increase market share by introducing product innovations, cultivating existing long-
term trusting customer relationships, and broadening our customer base. In terms of new customers,
our focus is on manufacturers that are leaders in their markets, either in terms of market share or
innovation.
We aim to drive volumes across all applications of humidity and flow to leverage and monetarize econo-
mies of scale, both in development and manufacturing. In addition, our strong market position allows us
to continue to leverage our position as entry point for additional environmental sensors, and in turn
increase customer content.
Become market leader for the entire environmental market
We aim to leverage our strong market position in humidity and flow sensing to become the market
leader in the entire environmental sensor market and to increase content in existing applications. In a
first step, we have introduced first generations of sensors for carbon dioxide (CO2), particulate matter
(PM2.5), formaldehyde and volatile organic compounds (VOC). The development priorities of these
generations were an optimized time-to-market and a quick gain in market share.
Accordingly, these generations were based on existing technology platforms. In a second step, we aim
to introduce second generations of our sensors for CO2, PM2.5, and formaldehyde in the upcoming
years. We intend to use the full in-house technology value chain with the goal of achieving miniaturiza-
tion, enabling disruptive innovation, and securing and expanding market share.
In addition, we aim to leverage our in-house technologies to quickly and reliably develop new sensors
targeting additional gas parameters. We also plan to expand our offering of combo modules of
various environmental sensors with the goal of enabling new applications and increasing customer
content.
Strategy Sensirion Annual Report 2020
15
“We intend to continue fostering our award-winning
company culture which facilitates hiring,
strengthens employee retention, and contributes to
creating the ideal environment for innovation.
Develop technologies for long-term growth
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. To find new growth opportunities, we closely monitor the overall sensor
market to identify market trends and evolving customer demands.
Additionally, we make use of our proximity to the global and local start-up community to seek out innova-
tive 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.
16
Sensirion Annual Report 2020 Strategy
Strategy Sensirion Annual Report 2020
17
Markets
Automotive market
In the automotive market, revenue amounted to CHF 55.2 million, which corresponds to an increase of
7.5 % compared to 2019 and a contribution of 21.7 % to group revenue.
Revenue development in CHF million
51.3
55.2
2019
2020
Revenue development was affected by two contrasting developments. On one hand, the ramp-up of a
significant PM2.5 sensor project in South Korea resulted in strong growth for the new tier 1 and module
business. The ramp-up of this important project not only represents the successful market introduction
of the particulate matter sensor for Sensirion, but also the achievement of a crucial milestone in the
development of Sensirion to a leading automotive tier 1 and module supplier. Offsetting this development,
on the other hand, the pandemic caused a decline in demand and customer factory closures in the
second quarter, which in turn led to lower revenue for the components business with humidity and gas
flow sensors. In the final months of the reporting year, however, we saw the first signs of a demand
recovery for automotive components.
Reducing energy consumption and increasing passenger comfort are the main drivers for employing
Sensirion’s sensors in the automotive area. Control of the passenger cabin climate and auto-defogging of
the windshield are made possible by applying humidity sensors, either directly at the windshield, in the
dashboard, or a combination of the two. Sensirion’s gas flow sensors are located in the air intake of com-
bustion engines with humidity sensors to control the combustion process more precisely. The newest gen-
eration of humidity and temperature sensors for the automotive market, the SHT3xA family, recorded signif-
icant revenues for the first time due to switches from the previous generation in several customer projects.
In the automotive module business, foremost with the ramp-up of the particulate sensor matter project in
South Korea and project wins in other areas, Sensirion has continued its path of expanding its environ-
mental sensor portfolio and building-up a track record as direct supplier to automotive OEMs. This
module portfolio supports the strategy to continuously increase content in existing and new applications.
Success in the automotive market depends on meeting rigorous requirements on product reliability, process
quality, and customer proximity. Accordingly, Sensirion’s automotive products meet the quality requirements
of the Automotive Electronics Council AEC-Q100, and Sensirion’s manufacturing sites in Switzerland, China,
and South Korea are certified according to the demanding international automotive standard IATF 16949.
Apart from the direct economic impacts, the COVID-19 pandemic appears to have increased environ-
mental consciousness and accelerated the shift from combustion to hybrid and electric vehicles.
Sensirion is convinced that this shift will benefit Sensirion mid- to long-term by increasing the penetration
rate of sensors in the auto-defogging and climate control applications. Whereas saving fuel by optimizing
climate control is a nice-to-have benefit for a combustion-engine vehicle, saving energy translates directly
into an increased range in the case of an electric vehicle.
18
Sensirion Annual Report 2020 Markets
Medical market
In the medical market, revenue amounted to CHF 112.3 million, +219.7 % year-on-year, contributing 44.3 %
to group revenue.
Revenue development in CHF million
35.1
2019
112.3
2020
In 2020, the COVID-19 pandemic dominated the results in the medical market. Of the CHF 112.3 million,
CHF 77.0 million stemmed from sales of gas flow sensors for medical ventilators, a large increase com-
pared to the CHF 7.0 million in 2019. Shortly after the outbreak of the pandemic in spring, demand for
sensors for medical ventilators increased up to eight- to tenfold within a few weeks. Sensirion took its
responsibility in this pandemic towards its customers and society in general very seriously, particularly
given Sensirion’s high market share in sensors for ventilators. A dedicated task force worked under high
pressure to increase production capacity to meet the multiplied demand within weeks. Because of the
great dedication, the extra effort, and the enthusiasm of numerous employees across all departments,
Sensirion was able to successfully cope with corona-related restrictions, such as factory closures at sup-
pliers and global logistics problems. Sensirion is proud to have been able to contribute to mitigating the
consequences of this worldwide pandemic. After the steep increase in demand in spring, the peak in
sensor shipments for ventilators occurred in the second and third quarters of 2020. We expect demand
to normalize during the first quarter of 2021.
In the medical market, Sensirion’s sensor solutions are used first and foremost in human respiratory
applications. In ventilators employed in hospitals and emergency settings, gas flow sensors and meters
measure the flow into and from the patient. This is performed at one or up to three locations. In expiratory
and inspiratory flow, the air flow out of and into the patient is measured in the ventilator, respectively. In
the case of proximal flow, the flow is not measured in the device, but close to the patient. Consequently,
Sensirion supplies customers with up to three gas flow sensors per ventilator. To meet the increased
demand in 2020, Sensirion developed a new gas flow sensor optimized for respiratory applications, the
SFM3019.
Apart from ventilation, the other important medical applications include continuous positive airway
pressure (CPAP) devices to treat sleep apnea and anesthesiology devices. In CPAP devices used in
homecare, gas flow and humidity sensors enable them to maintain the correct air flow into the patient
and control humidification of the trachea, thus helping the patient to sleep better and wake up more
rested in the morning. In anesthesiology, Sensirion’s mass flow meters play a mission-critical role to
correctly dose the applied amount of anesthetic agent.
In the future, other applications centered around real-time monitoring of gases and liquids entering and
exiting patients might emerge, for instance in smart inhalers.
Markets Sensirion Annual Report 2020
19
Industrial market
In the industrial market, revenue grew moderately to CHF 71.2 million, which corresponds to a 1.2 %
increase compared with 2019 and 28.1 % of group revenue. Thanks to projects with the newly launched
environmental sensors in some areas of the industrial market, it was possible to compensate for a
pandemic-related decline in demand in other areas.
Revenue development in CHF million
70.3
71.2
2019
2020
The home appliance market showed strong growth because of new customer projects in carbon dioxide
and particulate matter sensing, foremost in air purifiers. Several key customers finalized their product
design and consequently started production of their devices, based on Sensirion’s CO2 and PM2.5 product
families, which were launched in 2018. In addition, sales of humidity sensors for use in refrigerators also
increased compared to the previous year. In the appliance market, application drivers are mainly to save
energy and increase comfort. Applications include incorporating humidity sensors in refrigerators to
optimize energy, employing air quality sensors in air purifiers to achieve cleaner air, and installing CO2
sensors in air conditioners to ventilate rooms more efficiently.
In the area of heating, ventilation, and air-conditioning (HVAC), ramp-ups with the CO2 sensor were able
to compensate for sales decline in other projects, resulting in an overall small revenue increase
compared to 2019.
Sales of humidity sensors in the hard disk area started strongly in the first quarter of 2020, but then
subsequently declined due to the pandemic. Eventually, revenue was slightly less than in 2018. This was
not completely unexpected as, in addition to the pandemic-related effect, the shift from magnetic-based
to solid-state drives is still ongoing.
In the smart gas meter market, COVID-19-related factory closures of Sensirion customers, especially in
Italy, yielded a revenue decline year-over-year. In addition, the pandemic slowed down the roll-out of
Sensirion’s microthermal metering technology in other geographical areas. For instance, in the UK, gas
meters are often installed in an apartment. However, access to the apartments and thus to the gas meters
is very limited during the pandemic for reasons of infection.
20
Sensirion Annual Report 2020 Markets
Consumer market
In the consumer market, revenue slightly increased to CHF 14.9 million, 5.3 % year-over-year, contributing
5.9 % to group revenue. The growth resulted from new projects with humidity sensors and continued
robust business with the established portfolio. Particularly in Asia, customers launched new consumer
products incorporating Sensirion’s humidity sensor.
Revenue development in CHF million
14.1
14.9
2019
2020
Increased comfort as well as optimizing energy consumption drive the application of Sensirion’s sensors
in the consumer end market. This is for instance the case with humidity sensors in SmartHome appli-
cations such as baby monitors or smart thermostats.
In addition, driven by the COVID-19 pandemic, many customers of Sensirion launched CO2 monitors in
2020 based on Sensirion’s first generation of carbon dioxide sensors. COVID-19, like many other viruses,
is spread via respiratory droplets that are emitted from infected people through breathing, coughing, and
sneezing, and is also transmitted from direct, shared contact with contaminated surfaces. These infec-
tious diseases often become more prevalent during colder months as people tend to spend more time
indoors, where the air quality is poorer. The transmission of COVID-19 through small airborne microdrop-
lets, like the CO2 concentration, can easily be reduced by increasing ventilation. For buildings without
mechanical ventilation, such as homes and restaurants, natural ventilation means opening doors and
windows. While the level of viral particles in the air is unfortunately not detectable, it is relatively easy to
measure the CO2 concentration, and CO2 levels can be used as a surrogate to monitor the level of infec-
tious material in the air.
The level of CO2 in the air can be thought of as a “traffic light” system: green is between 400 and 1,000
parts per million (ppm) and is the CO2 concentration found in outdoor air; yellow is between 1,000 and
1,600 ppm and is where 80 % of people are satisfied with perceived air quality; finally, red is ≥1,600 ppm
and is where there are detectable negative impacts on human health and well-being. At this level, the air
quality is considered poor and the risk of viral transmission is increased. Thus, employing CO2 monitors
to indicate when a room should be ventilated can reduce the number of aerosols in the air and concomi-
tantly the infection risk with COVID-19.
Markets Sensirion Annual Report 2020
21
788 Employees (FTE) worldwide
as of 31 December 2020
Sensirion Automotive Solutions Inc.
(Eaton Rapids, United States)
Sensirion Inc.
(Chicago, United States)
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, South Korea and Hungary, as well as sales and customer support
offices in China, Japan, South Korea, Taiwan, and the US.
22
Sensirion Annual Report 2020 Worldwide
Sensirion Japan Co., Ltd.
(Tokyo, Japan)
Sensirion Holding AG
Sensirion AG
(Stäfa, Switzerland)
Sensirion Korea Co., Ltd.
(Dongan-Gu, South Korea)
Sensirion Automotive Solutions Korea Co., Ltd.
(Seoul, South Korea)
Sensirion Automotive Solutions (Shanghai) Co., Ltd.
(Shanghai, China)
Sensirion Hungary Kft.
(Debrecen, Hungary)
Sensirion Taiwan Co., Ltd.
(Zhubei City, Taiwan)
Sensirion China Co., Ltd.
(Shenzhen, China)
Worldwide Sensirion Annual Report 2020
23
Technology at heart,
future in mind.
24
Sensirion Annual Report 2020 Hot topics
Never before in human history has technological
progress caused such rapid development as today.
Digitalization, automation and the internet have
fundamentally altered our world over the past few
decades. Today, we can hardly imagine a world
without these innovations, which serve as basis for
other new technologies such as sensors.
Innovation and technological progress are the
foundation and at the heart of what we do at Sensirion.
However, we not only want to be innovative but also
go a step further and develop new technologies
and products that enable a smarter, more sustainable
future. The focus is on the major challenges of the
modern world, and Sensirion’s mission is to enable
new applications that will create a safer, more com-
fortable, healthier and more energy-efficient future.
In pursuing this mission, Sensirion remains true to its
guiding principle: “Technology at heart, future in mind”.
Hot topics Sensirion Annual Report 2020
25
26
Sensirion Annual Report 2020 Kapiteltitel 27
Kapiteltitel Sensirion Annual Report 2020 Indoor air quality and
CO2
Humans generate carbon dioxide (CO2) when converting nutrients into energy in the presence of oxygen
and exhale CO2 through respiration. If the concentration of CO2 in the air increases, the difference in CO2
levels in the lungs and the inhaled air is reduced, resulting in higher levels of CO2 in the blood, which can
lead to concentration problems and fatigue.
Consequently, the performance of people in a room decreases as the level of CO2 in the air increases.
High CO2 levels in closed spaces also contribute to an increased risk of viral infections.
How does Sensirion help create a healthier environment?
In order to improve indoor air quality, it is imperative to first know the existing air quality. That’s where
Sensirion comes in. Air quality is affected by the levels of CO2, volatile organic compounds, form-
aldehyde, particulate matter, as well as humidity and temperature. With market-leading environmental
sensor solutions to measure these parameters, Sensirion enables precise and accurate monitoring of
air quality.
Sensirion’s sensors are employed in smart ventilation systems or air treatment devices such as air
purifiers or air conditioners. Sensirion’s solutions help to monitor and improve air quality, increase
health and comfort, and minimize the risk of viral infections. Furthermore, smart, sensor-based venti-
lation systems are used to optimize a building’s energy efficiency.
The new SCD4x sensor is breaking the size barrier
in CO2 sensing.
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Sensirion Annual Report 2020 Hot topics
Hot topics Sensirion Annual Report 2020
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30
Sensirion Annual Report 2020 Hot topics
The SCD4x series:
PASens® Technology
Modern housing strives for greater energy efficiency in order to preserve natural resources. As heating is
one of the major sources of energy consumption, today’s buildings are constructed as airtight as possible
with improved insulation. However, airtight buildings exchange less air through their walls, roofs, windows
and cracks, which reduces the indoor air quality and has a negative impact on people’s productivity and
well-being. Accordingly, these types of building require an active ventilation system that regularly provides
fresh air in order to ensure a healthy and productive environment. Because ventilation systems require large
amounts of energy for air conditioning, purifying and circulation, it is important to ensure that these systems
are energy efficient in themselves. One solution is a ventilation strategy that controls the air exchange
based on the current demand and the number of people in a specific room. Ventilation systems of this kind
rely on a variety of sensors, foremost CO2 sensors. Until now, CO2 sensors have been bulky and expensive,
which has left some applications without accurate measurements to ideally control a building’s ventilation.
How has Sensirion tackled the issue?
With the aim of improving energy efficiency and increasing overall health, Sensirion has revolutionized
the CO₂ sensor market with the new SCD4x CO2 sensor, based on Sensirion’s unique PASens® Tech-
nology. PASens® Technology uses photoacoustic measurement principles to enable the development
of miniaturized CO₂ sensors without compromising performance.
Unlike non-dispersive infrared sensors, which are currently in common use, the sensitivity of the sensors
in the SCD4x series does not depend on the size of the optical cavity. As a result, customers can
integrate flexible, cost-efficient, compact CO₂ sensor technology into applications that have tight space
requirements. Through innovative packaging approaches and Sensirion’s expertise in sensor tech-
nology, MEMS and chip design, it was able to reduce the size of the sensor to one-fifth without compro-
mising performance. This miniaturization brings further advantages in the cost structure of this product,
opening up new opportunities for additional CO2 applications in all markets.
The SCD4x development board enables
fast and easy sensor evaluation.
Hot topics Sensirion Annual Report 2020
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32
Calibration
of the SCD4x gadget
Donated to 2500 classrooms in Switzerland
33
Improving
medical ventilation
Artificial respiration becomes necessary when a person’s natural breathing is no longer able to supply
enough oxygen and expel sufficient carbon dioxide. If breathing stops, the person’s organs are no longer
supplied with the required oxygen. Thus, respirators serve as life-saving devices.
When performing ventilation, it is crucial to precisely control the air flow into and out of the patient. If
too much air is pushed into the lungs or too much pressure is applied, the lungs can be overstretched
or damaged. Weak alveoli (air sacs) can tear, causing air to accumulate around the lungs and ultimately
causing the lungs to collapse. On the other hand, if the pressure and volume are too low, this may mean
that not enough air is circulating. As a result, the carbon dioxide levels in the blood may rise too much
and the small airways and alveoli may close up. In order to find the correct balance, the frequency and
volume of air delivered by the ventilator and the pressure maintained need to be constantly monitored
and adjusted.
How does Sensirion help to improve patient care?
Sensirion provides highly sophisticated flow sensor solutions, enabling manufacturers of respiratory
devices around the world to fit their equipment with highly accurate sensor technology that offers
timed flow and volume measurements. Continuous air flow measurements during anesthesia, intensive
medical treatment and in other clinical settings provide essential information required for correct
ventilation and regulating a patient’s breathing.
In addition, Sensirion’s humidity and temperature sensors ensure that the inhaled air has the optimum
humidity for patients. Human health is one of Sensirion’s top priorities. Thanks to its outstandingly
reliable sensors, Sensirion can help increase safety for patients who rely on ventilation.
Sensirion’s mass flow meters enable reliable
and highly accurate measurements.
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Sensirion Annual Report 2020 Hot topics
Hot topics Sensirion Annual Report 2020
35
SFM3019
Mass flow meter
for ventilators
In 2020, the world found itself facing an unprecedented public health emergency. The coronavirus was
spreading rapidly, and many of those affected experienced difficulty breathing. Respiratory devices have
been an essential part of treatment for these patients and have ultimately saved lives.
As a result, the global demand for respiratory devices and concomitantly medical flow sensors rose
sharply, and Sensirion’s products became highly sought after. As the crisis developed, global demand for
medical flow sensors increased roughly by a factor of ten.
How has Sensirion tackled the issue?
Sensirion has done everything in its power to ensure that life-saving ventilators were and are available
to patients. Sensirion’s strong focus on innovation paid off during the crisis as a dedicated development
team created a new flow sensor for ventilators within a very short time period that could be easily
integrated and was highly scalable in terms of its production. The huge demand for these sensors soon
manifested itself. However, it was also apparent that bottlenecks were bound to develop in the
production process and the supply of raw materials.
Drawing on their experience in the field of ventilation, a dedicated project team used a modular approach
to develop a new flow meter solution that made use of readily available raw materials. In addition to the
very short development time, the team had to cope with perturbations in the supply chain due to the
pandemic, both regarding raw materials and components. The main component is a sensor chip mounted
on a printed circuit board, which was taken from Sensirion’s SDP8xx differential pressure sensor, an
item commonly used in continuous positive airway pressure devices. This sensor was embedded in a
casing based on the existing SFM3000 mass flow meter. Manufacturing and calibration processes were
also adapted to enable high-volume production. All of these elements combined to form a reliable,
readily available sensor that was able to meet the worldwide spike in demand for ventilators.
The high quality of Sensirion's sensors can be ensured
by relying on various testing technologies.
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Sensirion Annual Report 2020 Hot topics
Hot topics Sensirion Annual Report 2020
37
Smart city and air
quality – an innovative
hypothesis
As an innovative company, Sensirion is constantly looking for new fields of activity. For this purpose,
we evaluate various hypotheses and test their feasibility. With our cutting-edge sensor solutions, we
want to meet the needs of society and the market to ensure a better environment.
A smart city is an urban area that uses various different electronic methods and sensors to collect data.
The insights gained from that data are used to manage assets, resources and services more efficiently,
and to improve how the city is run. One of the most important areas in need of improvement in modern
cities is air quality. Air pollution and the associated threat it poses to human health and our climate is a
growing concern around the world. The main sources of pollution are vehicles, power generation, heating
systems, agriculture, waste incineration and industry. More than three billion people worldwide rely on
polluting technologies and fuels for cooking, heating and lighting in their homes. These mainly fossil-fuel-
based technologies release smoke into homes and pollutants into the outside air.
How is Sensirion helping to reduce air pollution in cities?
The local conditions determine which measures are most effective in tackling air pollution. Each region,
city and neighborhood is different, and local industry, demographics, climate and geography are all
contributing factors. Reliable air pollution data is essential to identify which methods are most appro-
priate, which elements need to be verified and to demonstrate the efficiency of the measures to the
general public.
The traditional approach has been to rely solely on existing monitoring networks. However, these networks
very often have either reached their limit in terms of scale or are too expensive for many areas of the world.
Sensirion’s Nubo Air monitoring system offers government authorities a practical tool to extend existing
monitoring networks or to expand into communities and locations that were previously unmonitored.
Data quality and reliability are key requirements if the insights gained are to be used to determine
policies and regulations. Sensirion believes data quality should not have to be compromised for the sake
of cost efficiency and therefore developed Nubo Air, a new air monitoring system that meets the highest
quality standards, such as the UK’s MCERTS certification.
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Sensirion Annual Report 2020 Hot topics
Nubo Air
While it is clear that air pollution needs to be reduced, it is far less clear what the most effective and
cost-efficient methods for achieving this are. The availability of reliable environmental data is one key
part. Over the past few decades, major investments have been made in establishing high-caliber air
quality monitoring networks, which have led to an impressive reduction in air pollution.
Despite this success, however, air quality levels continue to exceed WHO recommendations in most
places. The huge cost of installing and maintaining these monitoring facilities limits their number and thus
the areas they are able to monitor.
How has Sensirion tackled the issue?
With the aim of enabling cities and communities to monitor their air quality with unprecedented
accuracy, Sensirion has developed Nubo Air, a new sensor-based system for monitoring local air pollu-
tion. The system is designed to combine the greatest possible reliability and accuracy with ease of use
and low maintenance costs. High-quality monitoring is necessary for achieving trustworthy data, and
ease of use and maintenance are key factors in lowering the overall cost of the system.
To achieve this, Sensirion took great care to optimize every step in the technology chain. The sensing
elements use proprietary contamination resistance to achieve maximum reliability and service life, even
under challenging conditions. All sensors are meticulously calibrated in the factory to keep field calibra-
tion requirements to a minimum. During operation, the condition of the sensors is constantly monitored
via a cloud system to ensure consistent data quality and detect any failures early on. If maintenance is
needed, a simple cartridge system keeps effort and electronic waste to a minimum. This also makes it
possible to upgrade the network to meet future sensor requirements without needing to reinstall the
fundamental infrastructure. Nubo Air integrates all of this technology into a straightforward plug-and-
play system.
Hot topics Sensirion Annual Report 2020
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40
“
During the big challenges in 2020,
I could always feel the cohesion and
the extraordinary commitment.
Mark Hornung, Director R&D Gasflow Sensors
You have been working for Sensirion for 22 years.
invests in sustainability, e.g. through new air conditioning
What has changed in research and development since you
and ventilation systems, purchase of solar power by increas-
first began?
ing share of alternative energies, i.e. solar power in our
Research and Development (R&D) became more profes-
energy mix, and many small improvements that benefit the
sional – from a five-person start-up to a strong department
environment.
with more than 200 people. For example, nowadays we
follow clearly defined and certified milestone processes,
Can you tell us a bit about how R&D works to develop
whereas in the past it was a bit more unregulated.
products that can be manufactured in a more environ-
mentally friendly way and have a more sustainable long-
Can you give some concrete examples?
term impact?
All product developments follow the project management
Our products are developed in a way that, for example, their
process already mentioned, which starts at milestone 0 and
production processes are energy efficient. All materials
ends at milestone 5. Thanks to this procedure, we can effi-
used meet ROHS/REACH quality requirements and we make
ciently develop new products and successfully launch them
efforts to use recyclable ones. These points are explicitly
in our production.
reviewed in our milestone checklists.
2020 was a very demanding year for many departments.
Exceptional circumstances such as those we have faced
How was the R&D team able to help the company achieve
this year reveal a lot about a company’s culture.
its goals?
What comes to mind when you think of the “SensiSpirit”?
In my area, the year 2020 was dominated by a very high
The high motivation of the employees to achieve ambitious
demand for gas flow sensors for medical ventilation equip-
goals, the respectful treatment of each other, the mutual
ment due to COVID-19. Because of our extremely motivated
support in achieving the goals and, after reaching a chal-
and dedicated employees in production, a well-coordinated
lenging goal, the celebration of this achievement together.
management team in the ramp-up organization, and a lot of
support from R&D employees in the production of the
What role do Sensirion’s values play in your day-to-day
sensors, we were able to deliver the enormous quantities
work and within your team?
required on time. For me, our so-called “SensiSpirit” clearly
I always feel that the company values of "top performance",
helped us to achieve this goal. I would like to take this
"fair and honest" and "together" are lived. Not only in my
opportunity to once again express my sincere thanks to all
team, but in the entire company. Especially during the big
employees, as they really made an enormous effort during
challenges in 2020, I could always feel the cohesion and
this difficult time.
the extraordinary commitment of all colleagues, which was
definitely decisive for our success.
Achieving corporate goals is one thing. But environmental
factors also need to be considered. Do you feel that
Do you have anything else you’d like to add?
we as a company are trying to become more sustainable?
I am very proud to work with so many great colleagues at
Absolutely. Sensirion is not only environmentally certified
Sensirion. It is also exciting to see how the company grows
according to ISO 14001, cools and heats the production
and how we successfully overcome difficult times together
building with geothermal probes, but also continuously
as a strong team.
Interview Sensirion Annual Report 2020
41
Together for
a sustainable future
42
“
The development of Sensirion’s innovative sensor
solutions is inspired and shaped by mega trends such as
resource scarcity, demographic change and steadily
growing technologies. Energy efficiency, healthcare,
safety & comfort as well as digitalization and automation
are among Sensirion’s growth drivers to contribute to
a smarter and more sustainable world.
As an internationally operating company whose sensors
are used in a wide range of markets and different app-
lications, taking over responsibility is of great importance
to Sensirion. We strive for operational excellence while
at the same time integrating social and ecological
aspects into all our business activities to create greater
added value for the environment.
In this context, our corporate values “fair & honest”,
“together” and “top performance” play a decisive role in
the everyday working life of our employees and form the
basis for the relationships with various stakeholders. For
Sensirion, sustainable corporate governance is much more
than just compliance with laws or regulations. It is the
deep conviction that only together can we really make a
difference. Whatever we do, we have the future in mind.
Marc von Waldkirch, CEO
Sustainability Sensirion Annual Report 2020
43
Stakeholder engagement –
more than a dialogue
Sensirion is an internationally operating company. Everything we do or do not has an impact on our stake-
holders and vice versa. So, we do our best every day to generate added value in all dimensions of
sustainability, for example on a social, economic, and ecological level. For us as a company and of course
for our stakeholders. The basis for sustainable impact is our active stakeholder dialogue that focuses on
our three core values:
• Fairness and honesty: for us, these are the foundations of every partnership. We maintain an
appreciative and open dialogue.
• Together: we value transparent communication and active exchange. We want to know our stake-
holders and their needs to jointly achieve the best possible solution.
• Top performance: we give our all, even if it involves additional effort. Why? Because we want to reach
the "next level" together with our stakeholders.
The “next level” is a key tenet at Sensirion. Every day, we try to be better and to face up to new challenges.
Together with our stakeholders, we aim to:
Make good things even better
Employees
Act sustainably out of conviction
Develop continuously in
a rapidly changing environment
Sensirion
Identify and use chances
for cooperation
Talented Applicants
Customer relationships
“We focus on our customers. Their needs are the drivers for innovation. Thus, it is essential that we
know their expectations and wishes and discuss our ideas intensively and critically.”
As a high-tech company, we strive to meet and exceed the different needs and expectations of our cus-
tomers. At the same time, our goal is to comply with the highest quality standards and to continuously
improve our quality management system. We are aware that customer satisfaction is far more than
meeting standards and providing technological excellence. It is about flexibility, reliability, and
solution-oriented support as the following two examples demonstrate impressively. In 2020, Sensirion
once again proved to be an agile organization specialized on solving real problems of our customers.
This requires that we know our customers and their needs and can react flexibly and quickly to changing
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Sensirion Annual Report 2020 Sustainability
Customers
Shareholder /
Analysts
Community
Suppliers
conditions. The dialogue with our customers is the key to a successful cooperation – especially in the
unsecure times our society is currently facing. Because customer visits, personal meetings and trade
fair participations were not possible anymore, we have started to conduct webinars. In these webinars,
our experts share their knowledge about key features and technical benefits of our sensor products and
relevant applications. Furthermore, participants have the chance to ask questions and to talk to our
sensor experts live. This new form of communication is highly appreciated by our customers and we will
continue to offer it after the pandemic. In doing so, Sensirion will significantly contribute to the further
reduction of CO2 emissions from business travel.
Another example of the flexibility and responsiveness mentioned above is the extreme commitment of the
team responsible for gas flow sensors, which plays an important role in medical ventilators. During the
pandemic, a very high demand for these devices and thus for our sensors suddenly arose worldwide. In
early April, we faced the challenge to increase our production output for medical ventilators by a factor of
10 within weeks. Suddenly, we had to manage everything in four shifts (including holidays and weekends)
and this under the difficult conditions of the lockdown and a still unknown virus. Also, the colleagues from
research and development were doing extra shifts to adapt the sensors to the customer's needs.
Part of the story – dialogue with our employees
“Our employees are our most valuable asset. They are the ambassadors of our unique corporate
culture called SensiSpirit.”
Our employees decisively contribute to Sensirion's overall success. We want to offer them an inspiring
working environment where teamwork, the promotion of top performance as well as fair and honest
cooperation form the basis for our innovative high-tech company in which they can think outside the box
and assume personal responsibility. Every single employee is an ambassador for our company culture
– and every single employee has an active role to play in creating the future of Sensirion.
Sharing our values and our SensiSpirit among new employees joining Sensirion and reflecting the
importance of these values with all employees on a regular basis are the motivation for our culture
workshops. These all-day cultural workshops bring employees together in mixed teams to talk about
corporate values, change, (individual) experiences, and room for improvement. In 2019, a new workshop
series started. More than 400 employees distributed over four workshops discussed how our corporate
values are lived, how they can be brought to life in our international subsidiaries or in new companies
after a successful merger and acquisition (M&A) process, and what each employee might contribute to
strengthen the SensiSpirit. Originally, it was planned to conduct two more workshops in 2020.
Unfortunately, we were forced to postpone them due to the pandemic.
Dialogue with our community
“We are proud to be part of a vibrant community. As a company, we are embedded in the local
environment and make our contribution as a corporate citizen.”
Social responsibility and sustainability are of crucial importance at Sensirion. Our sensors contribute to
improving energy efficiency, increasing health, as well as ensuring safety and comfort in various appli-
cations and markets. Our aim is to make an active contribution to a smarter world. To carry the respon-
sibility beyond the boundaries of the company and to directly promote social commitment in social,
Sustainability Sensirion Annual Report 2020
45
cultural or ecological areas, Sensirion is particularly involved regionally and in education. For this reason,
in November 2020, Sensirion announced that its internally developed CO2 monitoring system will be
installed for free in 2,500 classrooms in the canton of Zurich. The system will reduce the viral transmis-
sion risk by supporting regular, effective ventilation. Because pupils sit in classrooms for hours, they are
exposed to potentially infectious COVID-19 aerosols. In winter, this is particularly problematic as class-
rooms cannot be continually ventilated; the pupils would have to keep on their winter coats all day. A
CO2 monitor can make the school day easier by indicating the right time for opening windows to venti-
late the room. This time can vary according to the size of the room, the number of people in it and its
natural ventilation rate. Our CO2 sensor helps teachers ventilate effectively and regularly, thereby reduc-
ing the risk of infection and increasing classroom well-being and safety.
The Sensirion Alumni Group and our Student Ambassadors are two more examples that enrich our
community. The Alumni Group allows former employees to stay up to date on the latest chapters of
Sensirion’s success story by subscribing to regular newsletters, keep in touch with former and current
Sensirion employees at events, and expand their network. So, regardless of where our employees decide to
continue their careers, they remain part of the Sensirion story. Our Student Ambassadors are former
Sensirion interns who spent some time in our organization and know our company and culture. They are
now back at university, e.g. for a Master’s degree, and happy to share first-hand impressions, experiences,
and information with their peers. For questions or a personal meeting, the Student Ambassadors can be
contacted directly.
Dialogue with our suppliers
“We view our suppliers as partners who share our core values of fairness and honesty, teamwork
and delivering top performance.”
The products and services provided by suppliers form an essential and integral part of the supply chain
and are a crucial factor in Sensirion's competitiveness. We regard adherence to sustainability standards
within the supply chain as a fundamental success factor ensuring endured competitiveness across the
full value chain. By acting responsibly in collaboration with our partners, we aim to minimize risks and
create stable long-term business relationships to the mutual benefit of both parties. The principles exer-
cised within our Supplier Management Program also apply throughout the entire company. Suppliers
are required to comply with the Responsible Business Alliance (RBA) Code of Conduct. The Responsible
Business Alliance is the world’s largest industry coalition dedicated to corporate social responsibility in
global supply chains. Sensirion suppliers are actively encouraged to apply the same standards ensuring
code of conduct compliance among their own suppliers. Key suppliers are audited by Sensirion on a
regular basis. In 2020, 10 audits were conducted. Due to the pandemic and the related travel restrictions,
fewer audits could be realized than in the previous year. The audits performed focus on various criteria
including sustainability aspects. To achieve our goals, we must select and participatively work together
with the best suppliers available on a worldwide basis. Many case-specific criteria are used for guiding
the selection of new suppliers, but special attention is also given to the following points:
• Proven excellent technical expertise.
• Excellent reputation and good reference.
• Positive evaluation of a supplier’s environmental engagement.
•
Implemented and proven efficiency of the quality management system of a supplier.
• Successful evaluation of the first delivered samples.
• Competitive price for the product or service.
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Sensirion Annual Report 2020 Sustainability
Social commitment
“We have the future in mind. And as this future starts today, we have integrated diverse measures
and activities into our daily business routine to support a sustainable corporate management. Our
engagement focuses on our stakeholders and the social, economic, and environmental dimension
of sustainability.”
Writing success stories together
Only people who know what is required and are prepared to strive for excellence can produce top results.
And we are not referring to overtime, but rather a joint effort to strive for new, extraordinary visions and
solutions well beyond the mediocre. To achieve this, we need outstandingly talented staff at every level
who fully support this target and are prepared to take responsibility early on. Staff who are not satisfied
with average and for whom learning new things and out-of-the-box thinking are a matter of course. We
do a lot to offer our talented employees an inspiring and safe working environment and optimal condi-
tions for personal and professional development. Important pillars of this commitment are:
Equal opportunity – diversity – non-discrimination
Sensirion has recognized the advantage of diverse teams. As a company, we live and promote equal
opportunities and an interdisciplinary approach. Diversity promotes creativity and innovation, as
employees bring different backgrounds, perspectives, and experiences to the table. In line with our
"fair & honest" value, all employees at Sensirion are equal and are not discriminated against in hiring and
employment practices, such as compensation, promotions, awards, and access to training opportunities.
All our workforce can meet as equals regardless of their function, gender, age, sexual orientation,
religious background or origin, for example. We respect and appreciate all our team members at
Sensirion and are committed to creating a community. We have anchored this diversity approach in our
corporate values and in our Code of Conduct. This Code of Conduct addresses relevant information on
important topics such as child labor, freedom of association, health, and safety, etc., and can be found on
our homepage.
At Sensirion, all employees are given equal opportunities in the recruiting process and for promotion or
for filling management positions. Regular equal pay analyses, flexible working time models for
employees to reconcile family and career, extended maternity leave, which goes beyond legal require-
ments, and 15 days paternity leave support our culture that is based on appreciation and mutual respect.
Health and safety
We care about the physical and mental health of our employees. For this reason, Sensirion offers a wide
range of indoor and outdoor sports activities free of charge and regeneration-supporting offers such as
massages or yoga for an attractive price. Furthermore, employees benefit from free access to our own
fitness center, from free fruit as well as from water, apple juice, and hot beverages every day. The two
canteens offer fresh and balanced dishes every day at fair prices. Every employee can choose whether
he or she would like the meat or vegetarian menu or would prefer to help himself to the extensive salad
buffet. Apprentices have the same choice but pay only half price for the chosen menu. Menus that are
left over at lunchtime are later distributed to employees free of charge. A nice gesture that helps to
reduce food waste at headquarters.
Sustainibility Sensirion Annual Report 2020
47
Various development opportunities for young apprentices and all employees
We also attach importance to workplace ergonomics. From time to time, an external expert comes by to
realign workplaces according to ergonomic aspects (e.g. alignment of the screen, height of the chair)
and offers training on the topic of "Economic Sitting Posture". Many employees also have a combined
desk, which can be converted into a standing desk allowing them to sit or stand at work. In times of
home office, we have started to create short videos showing employees working from home how they
can optimize their remote workplace.
Sensirion offers all its employees department-specific education and safety training. For employees in
production, Sensirion offers various training courses on work instructions, handling of chemicals, elec-
trostatic discharge (ESD) protection, behavior in the clean room, but also health-related training courses
such as "Health in shift work" or special courses focusing on ergonomic workflows for cleaning staff.
Furthermore, evacuation exercises without prior notice help to review and improve our safety concept.
Our internal first aid team is trained on how to handle medical emergencies. The number of occupational
accidents at the headquarters in Stäfa amounted to four in 2020, which is below the industry average
according to SUVA (Swiss National Accident Insurance Fund) statistics.
In our Social Responsibility Statement 2020, we underline our responsibility for labor, environment,
health & safety and ethics. All these aspects are integrated into our management system and clearly go
beyond our legal responsibility. In doing so, we are guided by the Code of Conduct of the Responsible
Business Alliance (RBA). In February 2020, Sensirion was audited on the RBA requirements and passed
with recognition “Platinum Status”. Furthermore, we commit ourselves to upholding the employees’
human rights and treat them with dignity and respect.
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Sensirion Annual Report 2020 Sustainability
“
We want employees who can see the
overriding objective and accept tasks and
responsibility, even if they have not been
assigned to them.
Training and education
Our long-term success is reliant on talent. At every level and everywhere. If you are striving for excel-
lence, you need excellent team members. We support talented staff and give them responsibility in their
specialist field or in management. We want to provide them with prospects so that they will stay with us
in the long term. Another important concern, which the management actively supports, is that Sensirion
fills management tasks and executive positions internally wherever possible. In this way, Sensirion
wants to promote its own junior staff and give young people the chance to develop. That is why Sensirion
places great value on a wide range of training and development opportunities for all employees. In
addition to our in-house SensiAcademy that currently offers more than 120 different courses in areas
such Finance, Sales, R&D, Culture, IT, etc., we also support employees with external training in the form
of contributions to training costs and/or by making paid working time available.
One of the most important tasks of our managers is to promote and develop talent among their em-
ployees. Appreciative but also critical feedback is very important, especially for particularly talented
employees. Therefore, twice a year, all employees review their performance and development oppor-
tunities with their direct supervisor. The annual career development discussion during summer and the
corresponding year-end discussion are an integral part of our talent development. We aim to make our
employees better and to help them progress. This can include preparing a talented employee for a task
outside of the current job or even for an international assignment.
For newly selected supervisors, Sensirion offers a personal mentoring program that comprises coaching
by the line manager or another executive, internal SensiAcademy management courses, external courses
on leadership topics, and the participation in management days and tailored management meetings.
Of course, we also challenge and encourage our young apprentices. Sensirion offers professional appren-
ticeships with federal certification in seven different fields. Our aim is to share our knowledge and our
corporate culture in a pleasant learning environment. Sensirion organizes an annual apprentice excur-
sion, an apprentice camp and a monthly apprentice exchange. We also pay for school and course sup-
plies, and we even contribute to the cost of learning a language abroad for vocational school students.
Sensirion offers apprenticeships with competitive employment conditions in a modern workplace.
Sustainibility Sensirion Annual Report 2020
49
Corporate volunteering
Since spring 2020, the Swiss economy has been facing an unprecedented challenge. Due to the current
coronavirus crisis, people in Switzerland and abroad are suffering the social, economic and health
consequences of the pandemic. For this reason, Sensirion decided to organize a one-day collective run
under the motto “Moving Matters".
Our employees in Switzerland covered as many kilometers as possible in one day – on foot, by bicycle,
with inline skates or with the stand-up paddle (SUP) on the water, in compliance with the COVID-19
hygiene regulations. For every kilometer completed, a sum of money was donated so that a total of 8166
kilometers resulted in the proud sum of CHF 35,000 which was handed over to Swiss Solidarity.
In addition to Sensirion's donation, many employees made private donations. With this sporting and
community campaign, Sensirion did not simply want to collect money for the people affected, but rather
send a signal of solidarity and cohesion in society and the economy in the difficult times of the corona-
virus. Because the SensiSpirit for charity goes beyond borders, 66 employees in our subsidiaries also
contributed by covering 618 km and thus sponsoring CHF 6,000 to local charities.
Work-life balance
Sensirion owes its “life force” to team members who put their hearts and souls into their work for Sensirion,
making the impossible possible. This also includes heavy workloads and long hours for some projects.
Alongside this, lots of sports and leisure activities and events like our famous “Friday beer” where
employees meet for a beer to start the weekend have become established. They are important for the
“feel-good factor”, but also take up time. “Giving and taking” should be in balance.
To promote and improve the compatibility of family and career, Sensirion offers various flexible part-
time models. Currently, 34 % of our employees with a permanent employment contract work part-time.
19 % of these employees are working between 25 % and 80 % and the other 15 % have a part-time work-
load between 85 % and 95 %. New mothers or fathers in particular take advantage of the opportunity to
work part-time after maternity or paternity leave. Whenever possible, Sensirion tries to find the best
part-time solution together with the employee – even in management positions.
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Sensirion Annual Report 2020 Sustainability
“
Thanks to our corporate culture,
work is always fun even in very stressful
situations.
Bruno Meier, Senior Technician, R&D Gas Flow Sensors
Sustainibility Sensirion Annual Report 2020
51
Corporate culture: ownership, responsibility and feedback
Ownership in this sense means the responsibility that every employee must accept to ensure that
problems are identified and worked through, and countermeasures can be implemented as efficiently,
sustainably, and successfully as possible. Those who accept ownership and think for themselves also
attempt to identify and solve problems and challenges and consciously take responsibility. Since
Sensirion is a company undergoing rapid development, there are always new tasks, challenges, and
opportunities – even outside people’s personal job description.
We want employees who can see the overriding objective and accept tasks and responsibility, even if
they have not been assigned to them. We explicitly encourage employees who have an entrepreneurial
spirit, tackle challenges in a sporting manner and have the courage to explore beyond well-trodden
territory. Of course, this means that mistakes can be made. That is no problem as long as employees
who make a mistake are honest about it. In doing so, they are not only showing integrity, but they are
also helping to find a solution. This attitude towards mistakes enables the company to recover more
quickly from setbacks and to react agilely to changing conditions.
In regular and anonymous employee surveys, Sensirion aims to identify potential for improvements.
They are part of our distinctive feedback culture and help us to be and remain an attractive employer.
This kind of employee engagement pays off for both sides: in 2019, Sensirion was ranked the best Swiss
employer in the category “Large Company” (more than 250 employees) by Great Place to Work®.
Global cooperation
Our understanding of “Together” is not restricted to our Swiss site. We strive for international collabo-
ration every day beyond borders and time zones. The important requirements for this include mutual
respect and the intercultural skills of every single employee, which are particularly enhanced by
business trips and/or overseas deployments.
But even those people who travel little or not at all owing to their function have opportunities to get to
know their colleagues from all over the world at social occasions such as the annual SensiWeekend.
In any event, valuing others is an absolute priority as it is the only way our SensiSpirit can become a
standard all over the world.
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Sensirion Annual Report 2020 Sustainability
Environmental commitment
“We have the future in mind and do everything we can to lower our impact on the environment. On
the one hand, our efforts focus on an environmentally friendly production that avoids waste, increases
material efficiency, and uses natural resources thoughtfully and as sustainably as possible. On the
other hand, our innovative sensor products significantly contribute to more energy-efficient
processes and applications in many areas. We have calculated that our sensors help to avoid around
two million tons of CO2 per year.”
Intelligent products
Sensirion's sensors are used in different applications and a wide range of markets. Millions of sensors in
the field and our broad expertise significantly contribute to smart products and technologies. These in turn
help to save energy and increase comfort or safety. The following examples illustrate our contribution.
Automotive industry
Sensirion’s proven sensor solutions help automotive manufacturers meet stringent emission standards
in the automotive industry.
An example: our humidity and temperature sensors in cars ensure that cabin air is always opti-
mally regulated inside the vehicle for the driver by means of air-conditioning or climate-controlled
seats. Furthermore, by determining the dew point, the vehicle’s air-conditioning can be controlled
to eliminate fogging of the windshields and ensure a clear view of the road ahead. Without these
sensors, the air would have to be dried constantly, wasting a lot of energy. Thanks to our sensors,
drying only takes place in a dosed manner when there is a risk of fogging.
Industrial market
Thanks to the many years of use of our established sensor solutions, we help family homes, industrial
facilities, and entire building complexes to operate energy efficiently and at the same time increase
comfort for a pleasant indoor climate.
An example: buildings are responsible for approximately 40 percent of global energy consumption.
Using the appropriate building control system, energy consumption can be significantly reduced.
Our knowledge concerning the optimum use of sensors in buildings makes a decisive contribu-
tion towards the more efficient operation of buildings while also achieving greater comfort for the
occupants.
Green design: Sustainable product development – an example
Following our “future in mind” philosophy, Sensirion holistically takes on its corporate social responsi-
bility. Why? Because, on the one hand, this results in an agile, safe, and inspiring working environment
for our employees and, on the other hand, in innovative high-quality, reliable, and sustainable products
for our customers. For businesses in general, it becomes more and more of a competitive advantage to
consider sustainability aspects early on in the product development process. However, Sustainable
Product Development (SPD) is not limited to the actual product development itself, but also focuses on
the product design. The so-called Green Design has two main goals: the prevention of waste and the
minimization of environmental impact.
Sustainibility Sensirion Annual Report 2020
53
“
Quality of life is a key driver behind
Sensirion’s products.
54
Sensirion Annual Report 2020 Sustainability
Daniel Rueffer, Business Development Manager at Sensirion,
explains how the development of sustainable and reliable sensor
solutions is driven by current as well as future trends and demands.
Many people around the world are exposed to
The system can thus help decision makers to find ways
air pollution. What exactly is Sensirion’s contribution to
to improve our society’s footprint on the environment and
sustainably improve their quality of life?
public health. Could you address sustainability directly
“Quality of life is a key driver behind Sensirion’s products.
with the design of the product?
If we take the example of air pollution, it is seen as one of
“This is a very good question. Another sustainability chal-
humanities’ biggest challenges to human health and well-
lenge for product design is electronic waste. Fewer and
being. It is, however, neither visible by eye nor detectable
fewer products can be repaired and thus generate so called
by the human nose, apart from extreme situations in a few
e-waste. Sensirion’s products high reliability leads to longer
regions.
overall product lifetime. Long lifetime translates to less
e-waste. For Nubo Air, the challenge was more complex:
The first step to minimize air pollution, and thus to establish
the sensing technology to monitor air quality in cities is still
more sustainable societies and economies, is to measure
rapidly evolving. On top, depending on the location, the
and thus visualize the impact of activities and policies on
environmental conditions can be very challenging. These
the environment with sensors such as Sensirion’s pilot
two realities lead to the desire to replace air sensors in
project called “Nubo Air”. We truly hope that this innovative
Smart Cities at a higher rate than other city infrastructure.
system will set new standards in many cities in the long run.
We thus designed a cartridge system for Nubo Air that
At Sensirion, we know that genuine innovation requires
allows for easy replacement and upgrade of the sensing
long-term thinking and a readiness to take risks. Even if this
elements while keeping the rest of the system in use,
sometimes means that we have to take two steps back to
significantly reducing the amount of waste produced.”
finally take one step forward.”
A sustainable solution, but probably more difficult to
Nubo Air is used in a first reference project in Basel,
design. Does sustainability always come at an extra cost?
Switzerland. In this "Smart Climate" project, air data are
“No, not at all. Innovative solutions can lead to higher
measured with microsensors at ten locations in the
sustainability without making a product less practical or
Basel region. Can you explain in more detail how Nubo
costlier. In this case here, the cartridge not only reduces
Air works?
waste but also enables easier servicing and more advanced
“Nubo Air is a sensor system that gives policy makers,
calibration methodology. Overall, the total cost of ownership
communities or cities like Basel a very easy tool to monitor
is actually lower. However, it is very important to integrate
the air quality in various locations. The sensors can be
sustainability very early in development. Once product de-
installed quickly in any location, for example on a street-
velopment is advanced, it is very difficult or costly to adapt
light pole. They then collect data such as the fine dust
the product.”
concentration or temperature. This data is delivered live via
a cloud system to the researchers, decisions makers or
even the public. The city of Basel follows, for example, an
open data approach and makes all data publicly available.
This data can then be used to understand what causes air
pollution and how to tackle it most efficiently. It can also be
used to make simulations about how policies or environ-
mental changes affect our daily lives.”
Sustainability Sensirion Annual Report 2020
55
Environmental responsibility in operations
As a manufacturing company, we aim to minimize our environmental impact from operations and
business travel. For this reason, we evaluate our processes on a regular basis to identify further
opportunities to reduce our ecological footprint.
• Our production sites in Switzerland, China and South Korea are certified according to ISO 14001:2015 –
an international environmental management standard – and according to IATF 16949:2016, which is
the automotive industry’s addition to the ISO 9001 quality standard.
• The increasing miniaturization of our sensor components reduces energy consumption during
production and transport costs and emissions.
• Material efficiency: Yield Engineering teams regularly check how material scrap can be avoided or
further reduced.
• Sensirion has committed itself to compensate all CO2 emissions from business flights with
MyClimate. In 2020, we offset almost 148 tons of CO2 from business travel. Of course, the pandemic
helped to reduce the CO2 emissions in general as travel restrictions applied.
• Since 2019, we have been promoting our new parking concept at our headquarters in Stäfa.
Sensirion charges an annual parking fee but the generated revenue is completely returned to our
employees via an annual eco-bonus, which in turn can be used to purchase a Half-Fare Card for
public transport. In this context, we are very proud that 38 employees have decided to switch from
car to public transport. At first sight, this figure might seem small, but considering how difficult it is
to change one’s individual routines and behaviors, this number is worth mentioning. Employees who
do not need a parking space but instead use public transport to get to work can purchase
subsidized season tickets at very attractive prices.
• Hazardous substances in our products are reduced to a minimum. All products also meet the legal
stipulations of RoHS and REACH, and Sensirion is happy to comply with even stricter criteria at
clients’ request.
•
In 2020, we invested 18% of our turnover in Research and Development. We are convinced that
the foundation for sustainable properties in the use phase of a product is already laid during product
development. Therefore, our financial efforts and our know-how are of decisive importance at an
early stage.
• Again, in 2020, the environmental impact at our prodution site in Stäfa, Switzerland could be further reduced:
-17%
Reduction in water consumption
per sensor produced
-32%
Reduction in energy consumption
per sensor produced
-11%
Reduction in CO2 emissions
per sensor produced
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Sensirion Annual Report 2020 Sustainability
Construction site in Debrecen, Hungary, and topping out ceremony
Green building
Currently, our building at our new site in Debrecen, Hungary is under construction. Sensirion selected
Debrecen to handle the growing demand for sensors after a comprehensive evaluation of potential
locations throughout Central and Eastern Europe. Decisive factors in selecting a location were proximity
to our customers in Europe, the education level of potential employees and support from local business
development companies like the Debrecen Urban and Economic Development Center (EDC) and the
Hungarian Investment Promotion Agency (HIPA). Following the groundbreaking event at the end of June
2020, everything is progressing well. Completion of construction and the subsequent start of production
are anticipated by the third quarter of 2021.
For Patrick Good, Director Maintenance & Infrastructure at Sensirion headquarters, the new building is
both a challenge and an obligation at the same time when it comes to ecological aspects.
It goes without saying that sustainable construction is more expensive than conventional construction
that places little or no emphasis on environmental aspects. In Hungary, Sensirion has clearly opted for
the realization of a sustainable building that will have a positive impact in the long term thanks to the
following features and advantages:
• Two-story construction instead of the normally prevailing one-story standard construction with
high ceilings. As a consequence, a smaller building plot is needed. The lower story height requires
less air treatment that finally will result in a lower energy consumption for cooling, heating and
humidification or de-humidification.
• Operation free of fossil energy sources (natural gas/petroleum).
• Heating/cooling with reversible heat pumps; in summer supported by free cooling.
• Heat recovery and storage in big storage tanks of 60m³ each.
• Efficient cooling and distribution.
• Adiabatic spray humidification.
• State-of-the-art insulation / windows.
Once completed, we hope that our new production building will inspire others and encourage them to
also invest in sustainable construction.
Sustainability Sensirion Annual Report 2020
57
We also invested in the reduction of our ecological footprint at our headquarters in Stäfa. In November,
we started the replacement of our monoblocs in our main office building. In ventilation systems, the
various air treatment components such as filters, heat recovery, fans, air heaters, etc., are usually com-
bined in a central unit. In large systems, this central unit is called a monobloc. The mentioned building is
equipped with two such monoblocs. The second will be exchanged in spring 2021. The new monoblocs
fulfil the specifications for energy class A+ according to EUROVENT RS 4/C/001-2019 and the adiabatic air
supply humidification system is the first choice for environmentally friendly air humidification and cooling.
Ultra-fine spray mist generated under high pressure guarantees high-performance, economical air humidifi-
cation. This fact increases the well-being of our employees as the air is never too dry. Since September 2019,
we have been operating a solar plant on the roof of one of our office buildings. Now, more than 1 year
later in full operation and thanks to a beautiful summer, we could generate more than 119 MWh. Thus, the
own consumption of our building with approximately 110 MWh could be more than covered. The yield not
only exceeds our expectations but also corresponds to a CO2 saving of 92 tons (as of the end of Decem-
ber 2020). The generated surplus was transferred into our second office building.
Change as chance
In a high-tech environment, change and dynamism form the basis for long-term corporate success.
COVID-19 turned out to be our greatest challenge in 2020. As a company, we were forced to adopt new
forms of work. We started to implement new communication methods with advanced IT tools and to
digitally lead our employees through the crisis. We shared information from our remote workplace and
realized that safety at work in all its facets is not a matter of course. We had to learn to live without social
events and the wide range of sports and health activities that decisively contribute to our corporate culture
called “SensiSpirit”. We had to find alternatives for the informal exchange with colleagues, because conver-
sations at the coffee machine or during a freshly prepared lunch in the canteen were suddenly no longer
possible. We faced the daily challenge of designing our new work-life-balance and of finding new routines.
At the same time, we felt more than ever connected to our colleagues from production, who – in the truest
sense of the word – worked day and night to meet the enormous demands for sensors. Sensirion has the
future in mind and recognized the potential to reduce its environmental impact by adhering to some
behavioral changes even after the current crisis. For example, the insight that not every business trip
makes sense if an on-site meeting lasts one hour but the journey to and from the meeting takes a total of
four hours. The fact that home office can be a very productive source of new ideas and health as
employees can use their time that is normally consumed by commuting to and from work for sports
activities instead. Furthermore, the strong cohesion across team, divisional and corporate boundaries,
and the genuine willingness to work together experienced an incomparable “boost”. In short: we have
learned that a crisis can make us stronger: as a company, but also individually.
Sustainable Corporate Governance
For Sensirion, corporate governance is far more than compliance with legislation or additional voluntary
requirements. In this context, we attach great importance to various topics while at the same time
attempting to exceed expectations of our various stakeholders.
Anti-corruption & whistleblowing
Sensirion does not tolerate active or passive bribery. Our employees are encouraged to report deficiencies
and grievances. This reporting can either be done internally via a special site on our intranet or externally
via our homepage in our supplier portal. We grant the greatest discretion for such complaints and accept
them anonymously. Those who complain have no consequences to fear. In addition to our Code of Conduct,
Sensirion has an Anti-Corruption Policy in place which must be signed by every employee.
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Sensirion Annual Report 2020 Sustainability
Fair competition
Highest standards of business integrity are applied. Sensirion respects the intellectual property of its
competitors and expects the same from them. A fair competitive climate is achieved by avoiding
preferences, conflicts of interest or aggressive behavior.
Intellectual property
In our Code of Conduct, we clearly state that intellectual property rights are to be respected and that the
transfer of technology and know-how is to be done in a manner that protects intellectual property rights.
Customer and supplier information is to be safeguarded.
Quality
Sensirion endeavors to ensure that its products and services meet the most stringent quality standards.
Therefore, our quality management system is certified according to the International Standards ISO
16949 and ISO 9001. After all, reliable delivery and flawless products are a basic requirement for high
customer satisfaction. To achieve this high goal, the products are subjected to accelerated aging tests
during the development phase to ensure quality and longevity. With a final product qualification, the
products are put to the acid test again based on current standards before being released for mass
production. With this strategy, Sensirion makes sure that no end device must be disposed of due to a
broken Sensirion sensor. Our Quality Policy focuses on the following key points:
• We are committed to achieving full customer satisfaction and strive for constant improvement of the
quality of our products and services.
• Establishment and maintenance of efficient processes and tools to pursue the zero-tolerance-for-
defects policy.
• The quality of products and services is systematically and periodically monitored, assessed, reviewed,
and constantly improved.
• Customer satisfaction is monitored, assessed, reviewed, and improved constantly.
• Low turnover rate of employees is achieved by individual responsibility, directed education, and
professional training, complemented by a sustainable human resources planning.
• An intense and open communication is fostered among all employees of Sensirion to establish a
motivating and stimulating working environment. The dialog is cooperative, honest, and fair.
• Careful evaluation and systematic review of the key suppliers ensure a solid basis for all Sensirion
products.
Financial and economic stability
In 2018 Sensirion has received a Dun & Bradstreet rating certificate with the best possible result, Rating 1.
Only 2 % of all Swiss companies receive the highest rating. This rating reflects our financial and eco-
nomicstability. We are honored to have received this rating and consider it as a confirmation for our
daily business actions.
Transparency
We value transparency in everything we do. A transparent, open internal and external communication helps
to prevent misunderstandings and supports our corporate value “fair and honest”. For detailed information
covering all aspects of Corporate Governance, we refer to the Corporate Governance Report starting on
page 60.
Sustainability Sensirion Annual Report 2020
59
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 2020.
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 Regu-
lations”), 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 register 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 109.
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 119 and 120.
Significant shareholders
As of 31 December 2020, 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:
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Sensirion Annual Report 2020 Corporate Governance
Shareholder
% 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
32.7 %
4.9 %
3.8 %
3.5 %
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 32.2 % of the voting rights. Percentages are based on the shareholdings known by the Company as of
31 December 2020.
2 The beneficial owner of Davent Holding AG is Dr. Thomas Knecht, Zug, Switzerland.
Moritz Lechner, 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 nominated 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 undertakings 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 33 1⁄3 % of the Company’s voting rights)
or shares corresponding to 33 1⁄3 % 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.
The announcements related to the disclosure notifications made by shareholders during 2020 can be found
via the search facility on the platform of the Disclosure Office of the SIX Swiss Exchange: https://www.
ser-ag.com/en/resources/notifications-market-participants/significant-shareholders.html#/. For the pur-
poses of this section, percentages are based on the issued share capital of Sensirion Holding AG recorded
in the commercial register as of 31 December 2020.
Cross shareholdings
The Group has no cross-shareholdings that exceed 5 % of the holdings of capital or voting rights on both sides.
Capital structure
Capital
As of 31 December 2020, the share capital of Sensirion Holding AG amounts to CHF 1,557,335.00 divided
into 15’573’350 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 9.3 % of the
share capital). Further, Sensirion Holding AG has conditional share capital for employee participations in
Corporate Governance Sensirion Annual Report 2020
61
the amount of CHF 143,162.00 (corresponding to 9.2 % of the share capital) and conditional share capital
for financing, acquisitions, and other purposes in the amount of CHF 145,581.70 (corresponding to 9.3 %
of the share capital). The following table summarizes the capital structure of Sensirion Holding AG.
Share capital
As per 31 December 2020
% of capital
Shares
In CHF
Share capital
Authorized share capital1
Conditional share capital
Reserved for employee participation plans
Reserved for financing, acquisitions, and other purposes
100.0 %
9.3 %
9.2 %
9.3 %
15,573,350
1,557,335.00
1,455,817
145,581.70
1,431,620
143,162.00
1,455,817
145,581.70
1 Expiring on 11 May 2022
Authorized capital
The annual general meeting of shareholders of Sensirion Holding AG (the “Annual General Meeting”)
resolved on 11 May 2020, among other things, to create authorized share capital and authorized the Board
of Directors to increase the share capital any time until 11 May 2022 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 Association). Increases in partial amounts are allowed. The
subscription and acquisition of the new shares 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”). 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 entitle-
ment. 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
expiry of unexercised pre-emptive 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 Direc-
tors 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 participa-
tions, 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.
Conditional capital
As of 31 December 2020, the Articles of Association provide for two categories of conditional capital.
First, the share capital of Sensirion Holding AG may be increased by an amount not to exceed
CHF 143,162.00 by issuing up to 1,431,620 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 regula-
tions issued by the Board of Directors and taking into account the compensation 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
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Sensirion Annual Report 2020 Corporate Governance
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 (see Article 3c of the Articles of Association).
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 instru-
ments 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, 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.
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”).
Changes in capital
The share capital of Sensirion Holding AG increased by CHF 28,036.60 from CHF 1,529,298.40 to
CHF 1,557,335.00 between 1 January 2020 and 30 May 2020. A total of 280,366 fully paid-in registered
shares with a par value of CHF 0.10 each were issued out of conditional capital to members of the
Executive Committee and other employees under Sensirion’s employee participation plans (see the
Compensation Report on pages 84 to 96 as well as Note 16 of the Consolidated Financial Statements on
pages 127 to 128).
As a result, the conditional capital for employee participations (Article 3b of the Articles of Association)
was reduced by CHF 2,060.90 (20’609 shares) from CHF 145,222.90 (1,452,229 shares) to CHF 143,162.00
(1,431,620 shares). The conditional capital for employee participations in connection with the IPO Loyalty
Share Program was reduced by CHF 25,975.70 (259,757 shares), and the remaining conditional capital in
connection with the IPO Loyalty Share Program of CHF 15,163.60 (151,636 shares) has been cancelled due
to the expiry of conversion and options rights thereunder and can therefore no longer be used. These
capital increases out of conditional capital were registered in the commercial register on 22 June 2020
and published in the Swiss Official Gazette of Commerce on 25 June 2020. Except for this capital increase,
the share capital of Sensirion Holding AG did not change in 2020.
For information on changes of share and participation capital during 2019 and 2018, see our Annual
Report 2019 on page 45 and our Annual Report 2018 on pages 33 and 34, respectively.
Corporate Governance Sensirion Annual Report 2020
63
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. 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.
As of 31 December 2020, Sensirion Holding AG has not issued any participation certificates.
Profit sharing certificates
As of 31 December 2020, Sensirion Holding AG has not issued any profit sharing certificates (Genuss-
scheine).
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 aggre-
gate, 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 Percentage 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 % of the shares recorded in the commercial register before completion of the IPO, (ii) if such incum-
bent 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 2020, the Board of Directors granted no exceptions from the Percentage Limit
pursuant to Article 5 para. 3 of the Articles of Association.
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 share-
holder 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
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Sensirion Annual Report 2020 Corporate Governance
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 cancellation 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 out-
standing as of 31 December 2020. For information on Sensirion’s employee participation plans, see the
Compensation Report on pages 84 to 96 as well as Note 16 of the Consolidated Financial Statements on
pages 127 to 128.
Corporate Governance Sensirion Annual Report 2020
65
From left: Franz Studer, Ricarda Demarmels, Moritz Lechner, Felix Mayer, Heinrich Fischer
and François Gabella
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Sensirion Annual Report 2020 Corporate Governance
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 2020, the Board of Directors consisted of six members. All
members of the Board of Directors are non-executive directors. None of the members of the Board of
Directors held an executive position with Sensirion during the last three financial years preceding the
financial year 2020. 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 2020.
Name
Function
Committee membership
First elected
Elected until AGM
Dr. Moritz Lechner 1 Co-Chairman Member of the Nomination and
Dr. Felix Mayer 1
Co-Chairman
Compensation Committee
Chairman of the Nomination and
Compensation Committee
1998
(formation)
1998
(formation)
Ricarda Demarmels2 Member
Chairwoman of the Audit Committee
2018
2021
2021
2021
Heinrich Fischer2
Member
Member of the Audit Committee
2011
2021
Member of the Independent
Directors’ Committee
Member of the Nomination and
Compensation Committee
Chairman of the Independent
Directors’ Committee and Lead
Independent Director
François Gabella2
Member
Member of the Independent
Directors’ Committee
2019
Dr. Franz Studer2
Member
Member of the Audit Committee
2019
2021
2021
1 Dr. Moritz Lechner and Dr. Felix Mayer act for Sensirion AG, each on a 50 % basis, where they are responsible for sensor inno-
vation and strategic tasks.
2 Independent in the sense of the Swiss Code.
Corporate Governance Sensirion Annual Report 2020
67
Board of Directors
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. Moritz Lechner has received
numerous entrepreneurial awards. Currently, he serves on the Board of Directors of
Dectris AG, as well as 3db Access AG and IRsweep AG. Moritz 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. Felix 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, Felix Mayer serves on the Board of Directors of Avantama AG , Luma
Beef AG, Lumiphase AG, Nextlens AG and Optotune AG. He studied Physics at ETH
Zurich, from which he also received his PhD in Physics.
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. Since June 2019, she has served as Group CFO
and a member of the Group Management of the Emmi Group. Between 2015 and 2018,
Ricarda Demarmels served as Group 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, Ricarda Demarmels led
various strategy, M&A, and integration projects for Oliver Wyman, a global management
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).
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Sensirion Annual Report 2020 Corporate Governance
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, he 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. Heinrich Fischer is the Co-Founder of ISE AG, where he was
Chairman of the Board of Directors from 1993 to 2005. Currently, he 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.
François Gabella Non-Executive Director, Swiss national, born in 1958
François Gabella has been a non-executive member of the Board of Directors of
Sensirion Holding since 2019. He serves as member of the Independent Directors’
Committee. Prior to joining the Board of Directors, he served as CEO of LEM Holding AG
for eight years until 2018. Between 2006 and 2010, he was a member of the Metrology
Executive Board and CEO of TESA AG at Hexagon Metrology, Sweden. Prior to that,
François Gabella served as Senior Vice President, Power Transmission & Distribution
Division, at ARVEDA T&D for three years. From 1999 until 2001, he served as Group CEO
of a portfolio company at Texas Pacific Group, USA. Prior to that, he held various posi-
tions in the ABB Group. Currently, François Gabella serves on the Board of Directors of
Fischer Connectors AG, LEM Holding AG, Optotune AG, Nextlens AG and Sonceboz AG.
He is Vice President of Swissmem and a member of the Advisory Board of Switzerland
Global Enterprise. He received a Master’s degree in Microengineering from Ecole
Polytechnique Fédérale de Lausanne (EPFL) and an MBA from IMD Lausanne.
Dr. Franz Studer Non-Executive Director, Swiss national, born in 1965
Franz Studer has been a non-executive member of the Board of Directors of Sensirion
Holding since 2019. He serves as member of the Audit Committee. Since 2012, he has
served as Investment Director and Member of the Executive Committee of EGS
Beteiligungen AG. In 2010 and 2011, he was CEO/COO of aizo group. Prior to that, for
more than ten years, Franz Studer held various management positions at Bühler AG,
including Commercial Director, Vice President, Engineered Products. From 1994 until
1999, he served as attorney at a law firm in Zurich. Currently, he serves on the Board
of Directors of FAES AG (Chairman of the Board), Kantonsspital Winterthur (Chairman
of the Board), and HUBER + SUHNER AG. Franz Studer received both a Master’s and
PhD degree from the Faculty of Law, University of Zurich, bar admission from the
Canton of Zurich, and an Executive MBA from the University of St. Gallen.
69
69
Composition of the Board of Directors
At the Annual General Meeting on 11 May 2020, all members of the Board of Directors were re-elected for
another term of office until completion of the next Annual General Meeting to be held in 2021. As
announced on 14 December 2020, the Board of Directors intends to propose the election of Anja König as
an additional member of the Board of Directors at the upcoming Annual General Meeting 2021. As part of
its long-term succession planning, the Board of Directors decided that a temporary extension to seven
members for one year will ensure a sustainable transition until Heinrich Fischer will reach the extended
age limit for members of the Board of Directors in 2022.
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 com-
pletion 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 2020, the Board of Directors held nine meetings, four
of which were telephone conferences. The meetings lasted on average approximately eight hours each
and the telephone conferences approximately one hour. All meetings were attended by all members of
the Board of Directors. 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.
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.
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Sensirion Annual Report 2020 Corporate Governance
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 dele-
gated to another corporate body by law, the Articles of Association, the Organizational Regulations, or
other internal regulations.
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, 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 transactions, including the purchase and sale of real estate, the raising of financial indebt-
edness outside of the ordinary course of business, the granting of unsecured loans and guarantees
exceeding CHF 2 million, and any unbudgeted non-recurring investment exceeding CHF 2 million and any
recurring expenses exceeding CHF 500,000 per year, (iii) to adopt or amend the Company’s compensa-
tion 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
supervise their business operations. Further, the Board of Directors approves the individual fixed and
variable compensation 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.
Corporate Governance Sensirion Annual Report 2020
71
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 2020 Moritz Lechner),
and the other Co-Chairman is to chair the annual general meeting of shareholders (as of 31 December
2020 Felix Mayer). The Co-Chairman who is to chair the meetings of the Board of Directors has the
casting vote at meetings of the Board of Directors. 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 functions, 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.
Board Committees
The Board of Directors has established 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 committees 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 independent as defined by the Swiss Code of Best Practice for Corporate Gover-
nance 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 2020, the Audit Committee consisted of Ricarda Demarmels (Chairwoman), Heinrich
Fischer, and Franz Studer.
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 statements 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;
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Sensirion Annual Report 2020 Corporate Governance
•
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 proposing 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. In 2020, the Audit Committee held four meetings, which lasted on
average approximately four hours each. All members of the Audit Committee, the CEO as well as the CFO
in an advisory capacity, attended all meetings. External statutory auditors also participated in the
meetings on specific topics.
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 Directors, 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 Compensation
Committee shall be independent as defined by the Swiss Code. As of 31 December 2020, the Nomination
and Compensation Committee consisted of Felix Mayer (Chairman), Moritz Lechner, and Heinrich Fischer,
who were re-elected by the Annual General Meeting on 11 May 2020. Moritz Lechner and Felix Mayer,
Co-CEOs until June 2016, have been proposed as members of the Nomination and Compensation
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
Regulations, the Nomination and Compensation Committee’s responsibilities include:
•
reviewing and submitting proposals to the Board of Directors regarding the Company’s compensation
and benefits strategy and the basic elements of the compensation for members of the Board of
Directors and the Executive 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 of the individual compensation
by the Board of Directors and of the aggregate compensation by the Annual General Meeting;
•
determining selection criteria for the succession of the members of the Board of Directors and its
Corporate Governance Sensirion Annual Report 2020
73
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 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. In 2020, the Nomination and Compensation
Committee held five meetings, which lasted on average approximately two hours each. All members, as
well as in one instance the CEO in an advisory capacity, attended all meetings.
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 com-
paratively minor business relations 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
2020, the Independent Directors’ Committee consisted of Heinrich Fischer (Chairman and Lead Indepen-
dent Director), Ricarda Demarmels, and François Gabella.
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. The Independent Director’s Committee held no meeting in 2020 since no matter to be reviewed
or approved by the Independent Director’s Committee was pending.
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 planning 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:
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Sensirion Annual Report 2020 Corporate Governance
•
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 extraordi-
nary matters must be reported by the CEO to the members of the Board of Directors without delay.
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. Furthermore, clear delimitations of responsibilities and process-integrated controls such as the
use of the dual control principle constitute additional control measures. During the financial year, specific
control activities have been performed at subsidiary level to ensure a proper and reliable accounting
from a stand-alone but also from a group view. The correctness and effectiveness of the internal control
system is ensured on an annual basis by process-independent auditing activities by internal audit team
members and is regularly reported to the Executive Committee and the Audit Committee. The internal
audit reports are made available to the external statutory auditors.
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 Sensirion Automotive Solutions AG receives a separate financial and business
update from its business on a monthly basis.
Corporate Governance Sensirion Annual Report 2020
75
From left: Johannes Schumm, Johannes Bleuel, Marc von Waldkirch,
Matthias Gantner, Heiko Lambach and Andrea Orzati
76
Sensirion Annual Report 2020 Corporate Governance
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 2020, 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
Other functions and activities
CEO
VP Operations
CFO
VP Human Resources
VP Sales & Marketing
VP Research & Development
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 indi-
viduals) not belonging to the Group.
Corporate Governance Sensirion Annual Report 2020
77
Executive Committee
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, Marc 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 Technical University Darmstadt (Dipl.Phys.) and holds a PhD in Physics
from the Technical University Munich.
Matthias Gantner CFO, German national, born in 1964
Matthias Gantner has been serving as the Company’s CFO since 2012. He 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 Jungfalk for one year, where he
was a member of the Executive Committee for the same period. 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).
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Sensirion Annual Report 2020 Corporate Governance
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, Andrea 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 Poly-
technique Fédérale de Lausanne (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, Johannes
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.
79
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 84.
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 asso-
ciated therewith to the extent that such shareholder has been recorded in the share register as a share-
holder 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 collectively 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 page 46), or (ii) to the independent proxy 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 amendment 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 at a general meeting of shareholders
by the independent proxy, by their legal representative, or, by means of a written proxy, by any other
proxy, who need not be a shareholder. On 11 May 2020, the Annual General Meeting re-elected Law
Office Keller Partnership, Zurich, as the independent proxy 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 privileged voting rights; (iii) restrictions on the
transferability of registered shares and the cancelation of such a restriction; (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;
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 conver-
sions 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 Association, with the exception of editorial or technical
80
Sensirion Annual Report 2020 Corporate Governance
amendments: (w) the provisions regarding the share register, restrictions on the registration of share-
holders therein, and nominees (Article 5), (x) the provisions regarding shareholders’ 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 specifies 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 pub-
lishing a notice of the meeting in the Swiss Official Gazette of Commerce (Schweizerisches Handelsamts-
blatt). 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 33 1/3 % 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
Sensirion Holding AG granted restricted share units (“RSUs”) outstanding as of 31 December 2020 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 84 to 96). 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, replace, or roll over unvested RSUs, and (iii) in the
event of a conversion, sell the shares resulting from such conversion.
Corporate Governance Sensirion Annual Report 2020
81
Auditors
Duration of the mandate and term of office of the lead auditor
KPMG AG (“KPMG”), Räffelstrasse 28, 8036 Zurich, Switzerland has acted as statutory external auditor of
Sensirion Holding AG since 2008. The Annual General Meeting re-elected KPMG as external auditors
on 11 May 2020. Silvan Jurt (Partner) has been acting as the responsible lead auditor since 2019. In
accordance with Swiss law, the lead auditor will rotate at least every seven years.
Auditing fees and additional fees
In the financial year 2020, 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 230,000.
For additional services performed by KPMG in the financial year 2020, Sensirion was charged total
non-auditing fees as follows.
Additional fees, in thousand of CHF
Tax advice
Transfer pricing advice
Total
Information instruments
Amount
49
10
59
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 a 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 management 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 state-
ments of Sensirion Holding AG, the external auditors prepare a comprehensive report for the Board of
Directors pursuant to Article 727a CO. The Audit Committee discusses the comprehensive report and the
results of the external audit in detail with the external auditors.
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 indepen-
dence for the audit mandate.
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Sensirion Annual Report 2020 Corporate Governance
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. Further information for shareholders is available at https://www.
sensirion.com/ad-hoc-notices.
Contact
Sensirion Holding AG · Andrea Wüest · Director Investor Relations and M&A
Laubisrütistrasse 50 · 8712 Stäfa · Switzerland
Phone +41 44 927 11 40 · andrea.wueest@sensirion.com
Financial calendar
16 March 2021
2020 full-year results and annual report
25 March 2021
Capital markets day
18 May 2021
Annual general meeting
25 August 2021
2021 half-year results and interim report
Corporate Governance Sensirion Annual Report 2020
83
Compensation Report
This Compensation Report describes Sensirion’s principles of compensation and provides information on
the compensation awarded to the members of the Board of Directors and the Executive Committee in the
financial year 2020. The Compensation Report has been prepared in accordance with the Ordinance
against Excessive Remuneration in Listed Companies Limited by Shares (the “Compensation Ordinance”),
item 5 of the Directive on Information relating 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 18 May 2021 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 compensation 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”).
In order to implement the above-mentioned principles, we treat all employees, including the Executive
Committee, in the same manner regarding remuneration. In addition, as a result of Sensirion’s long-term
business perspective based on the fact that the majority of projects worked on in a given year only
generate relevant revenues within a timeframe of two to four years, Sensirion does not believe that a very
short-term view reflects all considerations pertaining to an annual bonus. As a consequence, our guiding
principles for the annual bonus 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 by key performance
indicators only and that looking at quantitative targets only may create wrong incentives. Therefore,
(i) 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, and (ii) the bonus takes into account
the overall assessment of an employee’s individual performance by their direct supervisor. The annual
bonus typically amounts to up to 10 % of fixed compensation for employees and up to 20 % of fixed
compensation for members of the Executive Committee.
•
For the members of the Executive Committee, the aggregate variable compensation proposed to the
Annual General Meeting by the Board of Directors is subject to approval by the Annual General Meeting
before being executed.
84
Sensirion Annual Report 2020 Compensation Report
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 compensation system for the members of the Board of Directors and of the
Executive Committee. The Board of Directors 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 2020, the Nomination and
Compensation Committee consisted of Felix Mayer (Chairman), Moritz Lechner, and Heinrich Fischer,
who were re-elected by the Annual General Meeting on 11 May 2020. According to the Charter of the
Nomination and Compensation 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 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 of the individual compensation
by the Board of Directors and of the maximum aggregate compensation by the Annual General
Meeting.
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. In 2020, the Nomination and Compensation
Committee held five meetings, 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 73 and 74.
Compensation Report Sensirion Annual Report 2020
85
Authorities in compensation-related matters
AGM
Board
NCC
CEO
Compensation and benefits strategy;
basic elements of compensation system
Approves
Proposes
Maximum aggregate compensation of Board
Approves
Proposes
Proposes
Individual compensation of Board members
Approves
Proposes
Maximum aggregate fixed compensation
of EC (prospective)
Aggregate variable compensation of EC
(retrospective)
Approves
Proposes
Proposes
Approves
Proposes
Proposes
Individual compensation of CEO
Approves
Proposes
Individual compensation of other EC members
Approves
Proposes
Proposes
Performance criteria and target values
of compensation of EC members
Approves
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
Shareholders’ approval of compensation (Say on Pay)
In accordance with Article 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 18 May 2021.
AGM 2021
(18 May 2021)
AGM 2022
1 Board of Directors
Max. aggregate compensation of Board
of Directors until completion of Annual
General Meeting 2022 (prospective)
2 Executive Committee fixed
Max. aggregate fixed compensation
of Executive Committee for financial
year 2022 (prospective)
3 Executive Committee variable
Aggregate variable compensation
of Executive Committee for financial
year 2020 (retrospective)
Financial year 2020
Financial year 2021
Financial year 2022
86
Sensirion Annual Report 2020 Compensation Report
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.
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 compensa-
tion 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 compensation of its members based on their position and level of responsibil-
ity 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 manage-
ment of Sensirion. For their work, each Co-Chairman receives a fixed compensation of CHF 250,000 p.a.,
consisting of CHF 100,000 for their role as Co-Chairman and CHF 150,000 for sensor innovation and stra-
tegic tasks. In addition, they participate in the occupational pension plans of Sensirion. The Co-Chairmen
are neither entitled to a performance-related compensation 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.
Compensation Report Sensirion Annual Report 2020
87
Elements of Board compensation (in CHF per year)
Chairperson
Member
Board of Directors
Audit Committee (AC)
Nomination and Compensation Committee (NCC)
Independent Directors’ Committee (IDC)
250,0001
30,000
n/a2
10,000
50,000
20,000
10,0003
10,000
1 Each Co-Chairman receives a fixed compensation of CHF 250,000 p.a. by Sensirion AG, each on a 50 % basis, CHF 100,000 for
their role as Co-Chairman and CHF 150,000 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.
In 2018, prior to the IPO, Sensirion performed 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 manufac-
turing 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 circumstances 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.
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
in arrears. 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 Board of Directors on an annual basis. The Co-Chairmen and the other members
of the Nomination and Compensation Committee participate in meetings of the Nomination and
Compensation Committee where their compensation 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 the 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
As of 31 December 2020, the Board of Directors consisted of six members. At the Annual General Meeting
on 11 May 2020, all current members of the Board of Directors were re-elected for another period. For the
financial years 2020 and 2019, the compensation of the members of the Board of Directors is set out in
the table below.
The compensation awarded to the members of the Board of Directors for the term up to the Annual
General Meeting 2020 was within the maximum aggregate amount of compensation approved by the
Annual General Meeting 2019 as set forth below. The compensation awarded to the members of the
Board of Directors for the current term will be approved at the Annual General Meeting on 18 May 2021.
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Sensirion Annual Report 2020 Compensation Report
Compensation period
Approved (CHF)
Effective (CHF
AGM 2019 – AGM 2020
AGM 2020 – AGM 2021
930,000
930,000
915,360
to be determined1
AGM: Annual General Meeting
1 The effective amount will be disclosed in the 2021 Compensation Report.
Compensation of the Board of Directors in 2020 (audited)
In CHF
Dr. Moritz Lechner, Co-Chairman
Dr. Felix Mayer, Co-Chairman
Ricarda Demarmels
Heinrich Fischer
François Gabella
Dr. Franz Studer
Total
Basic
compensation
Additional compensation
(committees,
special tasks)
Pension benefits
and social
security
contributions
Total
compensation
250,0001
250,0001
50,000
50,000
50,000
50,000
–
–
40,000
40,000
10,000
20,000
40,405
44,188
6,6542
4,6072
4,4362
5,0702
290,405
294,188
96,654
94,607
64,436
75,070
700,000
110,000
105,360
915,360
1 Each Co-Chairman receives a fixed compensation of CHF 250,000 p.a. by Sensirion AG, each on a 50 % basis, consisting of
CHF 100,000 for their role as Co-Chairman and CHF 150,000 for sensor innovation and strategic tasks. The Co-Chairmen do
not receive any additional compensation as Co-Chairmen of the Board of Directors.
2 Social security contributions required by Swiss Law.
Compensation of the Board of Directors in 2019 (audited)
In CHF
Dr. Moritz Lechner, Co-Chairman
Dr. Felix Mayer, Co-Chairman
Ricarda Demarmels
Heinrich Fischer
François Gabella2
Dr. Franz Studer2
Markus Glauser3
Total
Basic
compensation
Additional compensation
(committees, special
tasks)
Pension benefits
and social
security
contributions
Total
compensation
250,0001
250,0001
50,000
50,000
33,333
33,333
12,500
–
–
40,000
40,000
6,667
13,333
7,500
40,371
36,620
6,5194
4,4974
2,8974
3,3804
290,371
286,620
96,519
94,497
42,897
50,046
9714
20,971
679,166
107,500
95,255
881,921
1 Each Co-Chairman received a fixed compensation of CHF 250,000 p.a. by Sensirion AG, each on a 50 % basis, CHF 100,000
for their role as Co-Chairman and CHF 150,000 for sensor innovation and strategic tasks. The Co-Chairmen did not receive any
additional compensation as Co-Chairmen of the Board of Directors.
2 Member of the Board of Directors since 14 May 2019.
3 Member of the Board of Directors until 14 May 2019.
4 Social security contributions required by Swiss Law.
Compensation Report Sensirion Annual Report 2020
89
Loans or Credits to members of the Board of Directors (audited)
As of 31 December 2020, 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 2020, no compensation was paid to former members of the Board of Directors. As of 31 December
2020, 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 2020, no compensation was paid to parties closely related to current or former members of the Board
of Directors. As of 31 December 2020, 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, benefits, and a bonus awarded in the form of restricted shares and restricted share units (“RSUs”).
Compensation components
Instrument
Purpose
Influenced by
Annual base salary
Bonus
(share-based compensation)
Benefits
Base salary
Basic fixed
compensation
Paid in cash on a
monthly basis
Annual variable
bonus
Paid in restricted
shares and RSUs
Attract and retain
talented and highly
qualified executives
Position
Experience
Competitive market
Reward individual and
company performance
Align to shareholders’
interest
Foster entrepreneurial
mindset
Contribution to
short-, mid- and long-
term goals of the
company
Personal initiative
Individual extra efforts
Pension benefits
and social security
contributions
Allowances in kind
Risk protection for
participants and their
dependents
Market practice and
position
Legal requirements
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 responsibility 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.
In 2018, prior to the IPO, Sensirion performed a comparison of the compensation for the members of the
Executive Committee with peers listed on the SIX Swiss Exchange from the technology and manufactur-
ing sectors with revenues in the range of CHF 50-600 million.
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Sensirion Annual Report 2020 Compensation Report
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 approval of the variable
compensation for 2020 by the Annual General Meeting on 18 May 2021.
The Nomination and Compensation Committee determines the annual bonus of the CEO, and upon recom-
mendation of the CEO, the annual bonus of each other member of the Executive Committee in its sole
discretion on an annual basis.
In determining variable compensation, Sensirion takes an encompassing approach that considers both
meeting measurable targets and qualitative factors. 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 2020, 10 (ten) trading days), rounded up 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 recom-
mendation of the Nomination and Compensation Committee. In 2020, the RSUs awarded for the 2020
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
Compensation Committee submits the individual annual bonuses to be awarded to the members of the
Executive Committee to the full Board of Directors 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 by key
performance indicators only and that looking at quantitative targets only may create wrong incentives.
Therefore, the major part of the compensation consists of a fixed base 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; 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 employees is assessed against those objectives and
considered when determining 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 perfor-
mance 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
Compensation Report Sensirion Annual Report 2020
91
•
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
As a result of this method to determine the annual bonus for the Executive Committee, Article 25 of the
Articles of Association requires retrospective shareholder approval of the variable compensation. There-
fore, the Company will not deliver the restricted shares and the RSUs granted with the annual bonus in 2020
to the members of the Executive Committee prior to the approval by the Annual General Meeting 2021.
As a consequence of a strong performance in 2020, first and foremost extra efforts to meet the heavily
increased demand for gas flow sensors employed in ventilators and achieving growth in the regular busi-
ness in spite of challenging market conditions in connection with the COVID-19 pandemic, the Board of
Directors, based on a suggestion of the Nomination and Compensation Committee, increased the bonus
for all employees, including the Executive Committee, by 50 % compared to a reference level (for
comparison: in 2019, the bonus was halved compared to the reference level). As a result, in 2020, the
variable compensation in the form of the annual bonus, including RSUs, awarded to members of the
Executive Committee represented around 28 % (in 2019 around 10 %) of the base salary for the CEO and
between 18 % and 29 % (in 2019 5 % to 10 %) 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 termina-
tion of employment to the extent permitted 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, provided that the relevant participant has not given or received notice of termination of his or her
employment as set forth below by the vesting date, and has not sold or otherwise transferred the eco-
nomic 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
92
Sensirion Annual Report 2020 Compensation Report
RSUs will be forfeited without any compensation. The Co-Chairmen, acting jointly, may provide for excep-
tions 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 substan-
tially 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.
RSUs granted to the members of the Executive Committee as a one-time award in connection with the IPO
in 2018 under a special employee participation plan (the “IPO Loyalty Share Program”) vested and were
converted into shares on 15 January 2020 issued out of the Company's conditional capital. For further
information, please refer to our Annual Report 2019 on page 74.
Benefits
Benefits consist mainly of retirement and insurance plans that are designed to provide a reasonable level
of protection for the employees and their dependents with respect to retirement, risk of disability, death
and illness or accident. 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 employ-
ees in Switzerland, whereby the base salary is insured up to the maximum amount permitted by law.
Sensirion’s pension benefits exceed the legal requirements 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 representa-
tion allowance and benefits in kind and, 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 share-
holdings 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 2020, the Executive Committee consisted of six members. For the financial years
2020 and 2019, the compensation of the members of the Executive Committee is set out in the tables
below. Compared to 2019, the 2020 base salaries of the members of the Executive Committee remained
stable, except for two members whose salaries were increased to reflect their extended experience and
seniority. The bonuses in 2020 take into account the strong performance in 2020 and the comparison with
peers prepared in 2018 prior to the IPO.
The fixed compensation awarded to the members of the Executive Committee for the financial year 2020
is within the maximum aggregate amount of fixed compensation of CHF 2,300,000 approved by the
Annual General Meeting 2019.
Compensation Report Sensirion Annual Report 2020
93
Fixed compensation for the financial year
Approved (CHF)
Effective (CHF
2020 (approved by AGM 2019)
2,300,000
1,914,913
AGM: Annual General Meeting
Compensation of the Executive Committee in 2020 (audited)
Compensation Components (in CHF)
Marc von Waldkirch
(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 compensation
430,868
71,099
501,967
122,645
9,812
634,424
1,193,544
1,624,412
195,640
266,739
1,389,184
1,891,151
278,680
22,294
401,325
32,106
1,690,158
2,324,582
1 Variable bonus is based on the average of the share prices over 10 (ten) trading days prior to the date of allocation
(CHF 53.51) 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 18 May 2021. Following such
approval, a revised fair value will be determined for accounting purposes only.
Compensation of the Executive Committee in 2019 (audited)
Compensation Components (in CHF)
Marc von
Waldkirch (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 compensation
441,012
73,533
514,545
39,688
3,175
557,408
1,205,011
1,646,023
197,258
270,791
1,402,269
1,916,814
89,504
7,160
129,192
10,335
1,498,933
2,056,341
1 Variable bonus was based on the average of the share prices over 10 (ten) trading days prior to the date of allocation
(CHF 41.27) and consisted of 50 % restricted shares subject to a blocking period of three years and 50 % RSUs subject to a
vesting period of three years, and was subject to approval by the Annual General Meeting on 11 May 2020. Following such
approval, a revised fair value was determined for accounting purposes only.
94
Sensirion Annual Report 2020 Compensation Report
Loans or credits to members of the Executive Committee (audited)
As of 31 December 2020, 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 2020, no compensation was paid to former members of the Executive Committee. As of 31 December
2020, 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 2020, no compensation was paid to parties closely related to current or former members of the
Executive Committee. As of 31 December 2020, 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 2020, Sensirion maintains an employee participation plan 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 2020 (the “2020 Bonus”)
and to any future bonuses.
The remaining RSUs outstanding under the IPO Loyalty Share Program granted to Sensirion employees
in connection with the IPO in 2018 vested and were converted into shares on 15 January 2020 issued out
of the Company's conditional capital. As of 31 December 2020, no RSUs are outstanding under the IPO
Loyalty Share Program, which may not be used for any future awards.
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 the 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 discre-
tion upon recommendation of the Nomination and Compensation Committee.
As a consequence of a strong performance in 2020, first and foremost extra efforts to meet the heavily
increased demand for gas flow sensors employed in ventilators and achieving growth in the regular busi-
ness in spite of challenging market conditions in connection with the COVID-19 pandemic, the Board of
Directors, based on a suggestion of the Nomination and Compensation Committee, increased the bonus
for all employees, including the Executive Committee, by 50 % compared to a reference level (for
comparison: in 2019 the bonus has halved compared to the reference level). In 2020, Sensirion awarded
Compensation Report Sensirion Annual Report 2020
95
bonuses to 661 employees who, in accordance with the Bonus and RSU Plan, were given the opportunity
to choose between payment of their 2020 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 2020 Bonus in the form of a Cash Bonus. The election period for the 2020 Bonus ended
on 4 January 2021.
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 2020, 10
(ten) trading days), rounded up 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 2020, the RSUs awarded for the 2020 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 page 92 and 93 of
this Compensation 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 in 2018. No additional RSUs have been or will be
granted under the IPO Loyalty Share Program. The RSUs were converted into shares of Sensirion Holding AG
upon vesting as described above for the members of the Executive Committee. Each employee partici-
pating 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.
The remaining RSUs outstanding under the IPO Loyalty Share Program granted to Sensirion employees
in connection with the IPO in 2018 have been vested and were converted into shares on 15 January 2020
issued out of the Company's conditional capital. As of 31 December 2020, no RSUs are outstanding under
the IPO Loyalty Share Program, which may not be used for any future awards.
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 3.5 of the statutory financial statements of Sensirion Holding AG on page 160 of the
Annual Report.
96
Sensirion Annual Report 2020 Compensation Report
Auditor’s Report
Compensation Report Sensirion Annual Report 2020
97
KPMG AG, Räffelstrasse 28, CH-8036 Zurich © 2021 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member firm of the KPMG global organization of independent member firms affili-ated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. 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 Decem-ber 2020. 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 “au-dited” on pages 89, 90, 94 and 95 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 Com-panies (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 misstate-ments in the compensation report, whether due to fraud or error. This audit also includes evaluating the reasona-bleness of the methods applied to value components of remuneration, as well as assessing the overall presenta-tion of the compensation report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opin-ion. Opinion In our opinion, the compensation report for the year ended 31 December 2020 of Sensirion Holding AG complies with Swiss law and articles 14 – 16 of the Ordinance. KPMG AG Silvan Jurt Licensed Audit Expert Auditor in Charge Matthias Bachmann Licensed Audit Expert Zurich, 8 March 2021 98
Sensirion Annual Report 2020 Financial Report Financial Report
99
Kapiteltitel Sensirion Annual Report 2020 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 estimates and assumptions
4 Basis of consolidation
5 Significant accounting policies
6 Amendments issued but not yet effective
7 Impact of the COVID-19 pandemic
8 Segment reporting and disaggregation of revenu
9 Expenses by nature
10 Employee benefit expenses / personnel costs
11 Net finance costs
12 Earnings per registered share
13 Adjusted EBITDA
14 Employee benefits
15 Post-employment benefits
16 Share-based payment arrangement
17 Leases
18
Income taxes
19 Property, plant and equipment
100
102
102
103
104
105
106
107
107
107
108
108
110
119
119
119
120
121
121
122
122
123
123
127
129
130
134
Sensirion Annual Report 2020 Financial Report
20 Goodwill and intangible assets
21
Inventories
22 Trade and other receivables
23 Share capital
24 Capital management
25 Financial liabilities
26 Provisions
27 Financial instrument
28 Related parties
29 Subsequent events
28 Change in accounting standard
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
135
137
138
138
140
141
142
142
148
149
149
150
155
157
161
162
101
Financial Report Sensirion Annual Report 2020
Consolidated Financial Statements
Consolidated Income Statement
In thousands of CHF, for the year ended 31 December
Note
2020
in %
2019
Revenue
Cost of sales
Gross profit
– as % of revenue
Research and development expenses
Selling and distribution expenses
Administrative expenses
Operating profit (loss)
– as % of revenue
Finance income
Finance costs
Share of loss of equity-accounted investees, net of tax
Profit (loss) before tax
Income taxes
8
253,659
48.4 %
170,960
(107,491)
146,168
57.6%
(45,676)
(23,697)
(25,722)
51,073
2651.1 %
11
11
20.1%
964
(5,940)
(203)
45,894
18.1
(3,992)
Profit (loss) for the period, attributable to owners of Sensirion Holding AG
41,902
1625.9 %
– 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
16.5 %
2.71
2.70
64,082
25.3 %
68,821
27.1 %
12
12
13
13
236.7 %
The notes on pages 107 to 149 are an integrated part of these consolidated financial statements.
102
(79,165)
91,795
53.7 %
(41,530)
(27,124)
(25,143)
(2,002)
(1.2 %)
588
(2,220)
(349)
(3,983)
1,237
(2,746)
(1.6 %)
(0.18)
(0.18)
12,327
7.2 %
20,440
12.0 %
Sensirion Annual Report 2020 Financial Report Consolidated Statement of Profit or Loss and
Other Comprehensive Income (OCI)
In thousands of CHF, for the year ended 31 December
Note
2020
in %
2019
Profit (loss) for the period, attributable to owners of Sensirion Holding AG
41,902
1625.9 %
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
Items that are or may be reclassified to profit or loss
15.2
27.2
18.3
18.3
(5,514)
288
579
(4,647)
(792)
(792)
Other comprehensive income for the period, net of tax
18.3
(5,439)
(2,746)
(8,408)
74
2,051
(6,283)
(1,940)
(1,940)
(8,223)
Total comprehensive income for the period, attributable to owners
of Sensirion Holding AG
36’463
432.4 %
(10,969)
The notes on pages 107 to 149 are an integrated part of these consolidated financial statements.
103
Financial Report Sensirion Annual Report 2020 Consolidated Statement of Financial Position
In thousands of CHF
Note 31 December
2020
in %
31 December
2019
in %
Assets
Cash and cash equivalents
Financial assets (short term deposit)
Trade receivables
Prepaid expenses
Other receivables
Inventories
Total current assets
Property, plant and equipment
Right-of-use assets
Financial assets
Equity-accounted investees
Intangible assets
Goodwill
Deferred tax asset
Total non-current assets
Total assets
Liabilities
Trade payables
Accrued expenses
Employee benefits
Lease liabilities
Provisions
Other liabilities
Total current liabilities
Employee benefits
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Equity
Share capital
Capital reserve
Treasury shares reserve
Translation reserve
Revaluation reserve
Retained earnings
27.1
22
22
21
19
17
27.2
20.1
20.2
18.4
14
25/27.1
26
14
25/27.1
26
61,933
30,000
26,402
1,325
7,455
26,469
60,321
–
21,576
1,520
3,442
21,978
153,584
57.1 %
108,837
50.5 %
62,992
13,050
7,389
6,587
16,669
5,195
3,722
64,176
11,934
3,519
2,865
17,240
5,360
1,566
115,604
42.9 %
106,660
49.5 %
269,188
100.0 %
215,497
100.0 %
7,032
9,544
7,791
2,322
1,876
5,916
34,481
12.8 %
14.4 %
27.2 %
23,276
11,419
3,959
38,654
73,135
1,557
151,211
(1,735)
(1,710)
2,251
44,479
5,472
3,979
5,017
1,801
–
1,562
17,831
30,887
10,540
–
41,427
59,258
1,529
147,888
(1,735)
(918)
2,394
7,081
8.3 %
19.2 %
27.5 %
Total equity, attributable to owners of Sensirion Holding AG
23
196,053
72.8 %
156,239
72.5 %
Total liabilities and equity
269,188
100.0 %
215,497
100.0 %
The notes on pages 107 to 149 are an integrated part of these consolidated financial statements.
104
Sensirion Annual Report 2020 Financial 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 2019
Profit (loss) for the period
Other comprehensive income for the period
18.3
Total comprehensive income for the period
Capital increases
Sale of treasury shares
Equity-settled share-based payment transactions
16.1
Transactions with owners – contributions and
distributions
1,514
144,530
(5,137)
1,022
1,856
16,648
160,433
–
–
–
15
–
–
–
–
–
–
–
–
–
–
(3,402)
3,402
6,760
–
15
3,358
3,402
–
–
(2,746)
(2,746)
(1,940)
(1,940)
538
538
(6,821)
(8,223)
(9,567)
(10,969)
–
–
–
–
–
–
–
–
–
–
–
15
–
6,760
–
6,775
Balance at 31 December 2019
1,529
147,888
(1,735)
(918) 2,394
7,081
156,239
1’529
147’888
(1’735)
(918) 2,394
7’081
156,239
Balance at 1 January 2020
Profit for the period
Other comprehensive income for the period
18.3
Total comprehensive income for the period
Capital increases
–
–
–
–
–
–
28
(125)
Equity-settled share-based payment transactions
16.1
–
3,448
Transactions with owners – contributions and
distributions
28
3,323
–
–
–
–
–
–
–
–
41,902
41,902
(792)
(143)
(4,504)
(5,439)
(792)
(143) 37,398
36,463
–
–
–
–
–
–
–
–
(97)
3,448
–
3’351
Balance at 31 December 2020
1’557
151,211
(1,735)
(1,710) 2,251
44,479
196,053
The notes on pages 107 to 149 are an integrated part of these consolidated financial statements.
105
Financial Report Sensirion Annual Report 2020 Consolidated Statement of Cash Flows
In thousands of CHF, for the year ended 31 December
Note
2020
2019
Cash flows from operating activities
Profit (loss) for the period
Adjustments for:
– Depreciation and amortization
– Loss (gain) on sale of intangible assets, property, plant and equipment and
asset held for sale
– Other non-cash income
– Financial result without foreign exchange (gain)/loss
– 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 (except voluntary prepayments of employer contributions)
– Voluntary prepayments of employer contributions
– Provisions
Interest and bank charges paid
Income taxes paid
Net cash from operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment
Proceeds from sale of property, plant and equipment
Investment in financial assets (short term deposit)
Acquisition of financial assets (equity securities)
Acquisition of equity-accounted investees
Acquisition of intangible assets
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
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
41,902
(2,746)
17/19/20
17,748
15,893
18
(32)
(270)
1,783
203
3,121
3,992
(8,839)
195
(4,491)
2,814
785
4,049
(14,400)
5,835
(401)
(686)
(11)
(470)
644
349
6,554
(1,237)
965
725
8,198
(3,966)
(454)
1,787
–
–
(471)
(42)
53,308
25,718
19
(8,784)
(10,249)
32
(30,000)
(3,000)
(1,900)
(1,861)
(3,568)
11
–
–
–
(4,122)
(2,798)
(49,081)
(17,158)
20
20
17
(1,842)
(1,774)
28
(125)
(1,939)
2,288
60,321
(676)
15
(67)
(1,826)
6,734
53,938
(351)
61,933
60,321
The notes on pages 107 to 149 are an integral part of these consolidated financial statements.
106
Sensirion Annual Report 2020 Financial 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 customers 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) and the additional provisions of Swiss Commercial law. The consolidated financial statements were authorized for
issue by the Board of Directors on 8 March 2021. Details of the Group’s accounting policies are included in Notes 3 to 6.
Amendments to the IFRS, effective as of 1 January 2020, did not have a material impact on the consolidated financial state-
ments. The Group has not early adopted any other standard or amendment that has been issued but is not yet effective.
2.1 Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for the following items, which
are measured on an alternative basis on each reporting date.
Items
Financial assets at FVPL (IFRS 9)
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
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.
107
Financial Report Sensirion Annual Report 2020 3 Use of estimates and assumptions
In preparing these consolidated financial statements, management has made 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.
As a response to the COVID-19 pandemic, the Group has reassessed the underlying assumptions and estimates affecting
these consolidated financial statements.
Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities to prepare
the financial statements in conformity with IFRS. Actual results may differ from these estimates under different assump-
tions or conditions. Information about assumptions and estimation uncertainties at 31 December 2020 that have a signifi-
cant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities is included in the following
notes:
• Note 15 – Post-employment benefits;
• Note 20 – Intangible assets (recoverability of development costs);
• Note 21 – Inventories (recoverability);
• Note 26 – Provisions (measurement);
• Note 27 – Determining the fair value of financial instruments on the basis of significant unobservable inputs.
4 Basis of consolidation
4.1 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.
108
Sensirion Annual Report 2020 Financial Report The Company has direct or indirect control over the following subsidiaries or significant influence over the following
associates.
For the year ended 31 December
2020
2019
Company, principal place of business
Share capital
in %
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)
CHF
RMB
USD
JPY
2,000,000
1,260,000
660,000
25,000,000
KRW
100,000,000
Sensirion Taiwan Co. Ltd., Hsinchu (Taiwan)
TWD 25,000,000
Sensirion Hungary Kft., Budapest (Hungary)
HUF 3,000,000
100
100
100
100
100
100
100
Voting rights
in %
100
100
100
100
100
100
100
in %
100
100
100
100
100
100
–
Sensirion Automotive Solutions AG,
Stäfa (Switzerland)
Sensirion Automotive Solutions Inc.,
Eaton Rapids (USA)
Sensirion Automotive Solutions Korea Co. Ltd.,
Seoul (South Korea)
CHF
100,000
100
100
100
USD
250,000
100
100
100
KRW 15,000,000,000
100
100
100
Sensirion Automotive Solutions (Shanghai) Co. Ltd.,
Shanghai (China)
RMB
28,450,000
IRsweep AG, Stäfa (Switzerland)
CHF
166,667
Lumiphase AG, Zürich (Switzerland)
CHF 133,323
100
33
25
100
100
33
20
33
–
Voting rights
in %
100
100
100
100
100
100
–
100
100
100
100
33
–
4.2 Interests in equity-accounted investees
The Group’s interests in equity-accounted investees comprise interests in associates. An associated company is a company
in which Sensirion Group has significant influence. Significant influence is the ability to participate in the financial and
business policy decisions of the investee, but not control or joint control of these decisions. Interests in associated compa-
nies are accounted using the equity method. Equity investments are initially recognized at cost, which includes transaction
costs. Any goodwill identified is included in the carrying amount of the investment and is not recognized as separate good-
will. Subsequent to the initial recognition, the result of associated companies is absorbed into the Group pro rata and
allocated to the carrying amount of the investment. Profit distribution by these companies reduces their carrying amount.
4.3 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.
4.4 Foreign currency
4.4.1 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.
109
Financial Report Sensirion Annual Report 2020 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.
4.4.2 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 trans-
lated 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, which leads to a loss of control, 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.
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 Equity-settled share-based payment transactions
The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recog-
nized 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.
110
Sensirion Annual Report 2020 Financial Report 5.2.3 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 that 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 corre-
sponding 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.
5.2.4 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.
5.2.5 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. The actuarial assumptions on which the calculations are based are determined by market expectations, at the end
of the reporting period, for the period over which the obligations are to be settled.
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 that
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.
5.2.6 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.
111
Financial Report Sensirion Annual Report 2020 5.3 Finance income and finance costs
The Group’s finance income and finance costs include:
•
•
interest income;
interest expense on borrowings / lease liabilities;
• net interest costs on the defined benefit liability and other long-term employee benefits;
• changes in the fair value of financial assets at fair value through profit or loss;
• the foreign currency gain or loss on financial assets and financial liabilities.
Interest income or expense is recognized using the effective interest method.
5.4 Income tax
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 adjust-
ment 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.
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 can be assumed with sufficient probability that the respective company will have sufficient taxable income
against which temporary differences and unutilized loss carryforwards 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 when the income taxes are levied by the same taxation authority and when
there is a legally enforceable right to offset them.
112
Sensirion Annual Report 2020 Financial Report
5.5 Inventories
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. Inventory allowances are recognized for slow- and non-moving
stock. Technically obsolete items are written off.
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 impair-
ment losses. If significant parts of an item of property, plant and equipment have different useful life, 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 life, and is generally recognized in profit or loss. Land is
not depreciated.
The estimated useful life of property, plant and equipment for current and comparative periods is as follows:
Class
Land
Buildings
Production facilities
Other property, plant and equipment
Years
No depreciation
20 -40
2 - 8
4 -8
Depreciation methods, useful life, and residual values are reviewed at each reporting date and adjusted if appropriate.
5.7 Goodwill and intangible assets
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 techni-
cally and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient
resources to complete development 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.
113
Financial Report Sensirion Annual Report 2020 Patents and trademarks
Patents, trademarks and capitalized customer relationships that are acquired by the Group have finite useful life 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 life and is generally recognized in profit or loss. Goodwill is not amortized.
The estimated useful life for current and comparative periods is as follows:
Class
Patents and trademarks
Development costs
Software
Other intangible assets
Years
10
5
4
4 - 10
Amortization methods, useful life and residual values are reviewed at each reporting date and adjusted if appropriate.
5.8 Financial instruments
5.8.1 Recognition and initial measurement
Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are
initially recognized 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 fair value, 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.
5.8.2 Financial assets – Classification and subsequent measurement
The Group classifies non-derivative financial assets into the following categories: “amortized cost”, “fair value through
profit or loss (FVPL)” and “fair value through other comprehensive income (FVOCI)” and subsequent measurement at
“amortized cost”.
A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold assets to
collect contractual 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 subse-
quent changes in the investment’s fair value in OCI. Financial assets that are neither measured at amortized cost nor
measured at FVOCI are measured at FVPL.
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Sensirion Annual Report 2020 Financial Report Financial assets at amortized cost
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 impair-
ment are recognized in profit or loss. Any gain or loss on derecognition is recog-
nized in profit or loss.
Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognized
Financial assets at fair value through
profit or loss (FVPL)
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.
These are financial assets whose performance is evaluated on a fair value basis.
A gain or loss on a financial asset that is subsequently measured at fair value
through profit or loss and presented within other financial income (expense) in
the period in which it arises.
5.8.3 Financial liabilities
Financial liabilities are measured at amortized cost. 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.
5.8.4 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.
5.8.5 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.
5.9 Impairment
5.9.1 Non-derivative financial assets
Financial instruments
The Group recognizes loss allowances for expected credit losses (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
115
Financial Report Sensirion Annual Report 2020
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 scenar-
ios. 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 finan-
cial 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. The Group recognized loss allowances for expected credit losses for trade receivables
only. The impairment has been recorded in “Selling and distribution expenses” in the consolidated income statement.
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.
5.9.2 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
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Sensirion Annual Report 2020 Financial Report
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.
5.10 Equity
5.10.1 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 deduc-
tion from equity.
5.10.2 Repurchase and reissue of shares (treasury shares)
When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attribut-
able costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury
shares and are presented 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.
5.11 Leases
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.
Assets and liabilities arising from a lease are initially measured on a present value basis, 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 trans-
ferred 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.
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Financial Report Sensirion Annual Report 2020
5.12 Provisions
Provisions are recognized when the Group has a present obligation as a result of a past event, and it is probable that an
outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. The amount recognized as a provision is the best estimate of the expenditure required to settle the present
obligation at the balance sheet date. Where the effect of time value of money is material, the amount recognized is the
present value of the estimated expenditures.
Provisions for warranty commitments are recognized as a consequence of the Group’s policy to cover the cost of repair of
defective products.
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 participants 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.
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 accessible to the Group on the measurement date 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 in which the change has occurred.
Further information about the assumptions made in measuring fair values is included in the following notes:
•
•
Note 16 – Share-based payment arrangement;
Note 27 – Financial instruments.
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 incor-
porates 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.
118
Sensirion Annual Report 2020 Financial Report 6 Amendments issued but not yet effective
The following revised standards 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.
Revision or amendments of standards and interpretations
Interest Rate Benchmark Reform – Phase 2
(Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
Effective date
Planned application by Sensirion
Holding AG in reporting year
1 January 2021
Reporting year 2021
Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37)
1 January 2022
Reporting year 2022
Annual Improvements to IFRS Standards 2018-2020
1 January 2022
Reporting year 2022
Property, Plant and Equipment: Proceeds before Intended Use (Amendments
to IAS 16)
1 January 2022
Reporting year 2022
Reference to the Conceptual Framework (Amendments to IFRS 3)
1 January 2022
Reporting year 2022
Classification of liabilities as current or non-current (Amendments to IAS 1)
1 January 2023
Reporting year 2023
Based on a preliminary assessment, the new requirements will not have a significant impact on the consolidated financial statements.
7 Impact of the COVID-19 pandemic
The COVID-19 pandemic had a significant impact on the Group’s revenues due to increased sales in the medical market.
The pandemic has not significantly impacted the supply chain. Further, there were no significant bad debts that could be
directly attributed to COVID-19 factors. However, inventory allowances increased due to uncertainty of the pandemic in
future market demand. No other significant impacts resulted and no significant payments from governmental measures as
a response to the pandemic have been received throughout the period. In order to minimize the risk of expected credit
losses, individual payment terms have been agreed with customers.
8 Segment reporting and disaggregation
of revenue
8.1 Basis for segmentation
The Group operates in one industry segment that 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.
8.2 Entity-wide disclosures and disaggregation of revenue
In thousands of CHF, for the year ended 31 December, and as % of revenue
2020
2019
Revenue – Geographic information by countries
Switzerland
USA
China
Germany
South Korea
Australia
Other foreign countries
Total
8,751
3.4 %
3,734
2.2 %
65,455
25.8 %
30,699
18.0 %
44,747
17.6 %
20,817
12.2 %
34,944
13.8 %
31,890
18.7 %
29,367
11.6 %
21,377
12.5 %
14,402
5.7 %
15,032
8.8 %
55,993
22.1 %
47,411
27.6 %
253,659 100.0 %
170,960 100.0 %
119
Financial Report Sensirion Annual Report 2020 In thousands of CHF, for the year ended 31 December, and as % of revenue
2020
2019
Revenue – Geographic information by regions
APAC
EMEA
Americas
Total
In thousands of CHF
Non-current assets – Geographic information
Switzerland
South Korea
China
USA
Other foreign countries
Total
110,759
43.7 %
78,026
45.6 %
70,614
27.8 %
58,831
34.4 %
72,286
28.5 %
34,103
20.0 %
253,659 100.0 %
170,960 100.0 %
31 Dec
2020
31 Dec
2019
82,975
79.4 %
79,575
78.3 %
14,979
14.3 %
15,944
15.7 %
6,291
6.0 %
5,585
210
0.2 %
38 <0.1 %
367
104
5.5 %
0.4 %
<0.1 %
104,493 100.0 %
101,575 100.0 %
The geographic information on revenues in the table above is based on the customers’ location.
In total, the Group generated more than 10 % of its total sales with one customer (previous year’s period: 10 % revenue
generated with two costumers).
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
2020
2019
Revenue – per customer market
Automotive
Medical
Industrial
Consumer
Total
55,221
21.7 %
51,345
30.0 %
112,334
44.3 %
35,139
20.6 %
71,214
28.1 %
70,342
41.1 %
14,890
5.9 %
14,134
8.3 %
253,659 100.0 % 170,960 100.0 %
9 Expenses by nature
In thousands of CHF
Note
2020
2019
Changes in inventories
Raw materials and consumables
Employee benefits
Depreciation and amortization
Other
Total expenses
120
10
17/19/20
4,491
(70,208)
(98,934)
(17,748)
(20,187)
(8,198)
(38,305)
(94,399)
(15,893)
(16,167)
(202,586)
(172,962)
Sensirion Annual Report 2020 Financial Report 10 Employee benefit expenses / personnel costs
In thousands of CHF
Note
2020
2019
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
15.2
74,408
4,867
753
4,977
158
3,246
10,525
98,934
71,771
5,433
1,088
4,570
342
6,554
4,641
94,399
The increase in other employee benefit expenses is mainly due to the increase in temporary employees due to the increased
utilisation of production.
11 Net finance costs
In thousands of CHF
Note
2020
2019
Finance income
Interest income
Net foreign exchange gains
Other financial income
Finance income
56
818
90
964
–
508
80
588
In thousands of CHF
Note
2020
2019
Finance costs
Interest expense
Interest expense on lease liabilities
Net foreign exchange losses
Bank charges
Net interest costs of defined benefit plans
15.2
Other financial costs
Finance costs
(83)
(357)
(4,687)
(59)
(51)
(703)
(5,940)
(13)
(404)
(1,496)
(54)
(162)
(91)
(2,220)
Net finance costs recognized in profit and loss
(4,976)
(1,632)
121
Financial Report Sensirion Annual Report 2020 12 Earnings per registered share
12.1 Basic earnings per share
The weighted-average number of registered shares for the period ended 31 December 2020 for the purpose of calculating
basic earnings per registered share amounts to 15,486,851 (2019: 15,186,385).
12.2 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 15,491,081 (2019: 15,186,385).
13 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 management 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 equity accounted investees, net of tax, and the non-recurring expense from the IPO Loyalty Share Program
(including social security expenses) that management believes is not indicative of operational performance. All expenses
out of the IPO Loyalty Share Program were recognized and settled by the end of 2019.
In thousands of CHF, for the year ended 31 December
Note
2020
2019
Reconciliation of profit (loss) to Adjusted EBITDA for the period
Profit (loss) for the period
Net interest expenses
Income taxes
Depreciation
Amortization
41,902
(2,746)
11
18
440
3,992
19/20
11,813
20
5,935
417
(1,237)
11,889
4,004
12,327
1,215
349
6,549
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
– IPO Loyalty Share Program, including social security expenses
16.1
64,082
4,536
203
–
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)
68’821
20,440
122
Sensirion Annual Report 2020 Financial Report 14 Employee benefits
In thousands of CHF
Note 31 December 2020 31 December 2019
Short-term employee benefits
Total employee benefit liabilities, current
Net defined benefit liability
Other long-term employee benefit liabilities
Total employee benefit liabilities, non-current
15.2
7,791
7,791
19,750
3,526
23,276
5,017
5,017
27,573
3,314
30,887
For details on the related employee benefit expenses, see Note 10.
15 Post-employment benefits
15.1 Defined benefit plans and funding
The Group has pension plans in Switzerland and South Korea that 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 stipu-
lates 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.
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 determination 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.
Plan beneficiaries, their spouses and children are insured against the financial consequences of old age, death and dis-
ability. 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 contribu-
tions are defined in the pension plan regulations. Minimum contributions and minimum interest are defined by the BVG
and the Federal Council respectively.
123
Financial Report Sensirion Annual Report 2020 Sensirion has a collective pension fund without full reinsurance of risks with effect from 1 January 2019. With this pension
fund solution, Sensirion might be required to pay restructuring contributions. 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.
In 2020, the Group’s net defined benefit liability decreased by CHF 7,823 thousand. This decrease is mainly due to the
voluntary prepayment of employer contributions of CHF 14,400 thousand that was contributed to the Swiss pension
plan in 2020. Without the voluntary prepayment of employer contributions, the net defined benefit liability would have
increased by CHF 6,577 thousand. The increase is mainly caused by another reduction of the discount rate applicable for
the calculation of the actuarial loss on financial assumptions effective as of 1 January 2021. In prior year, the net defined
benefit liability increased by CHF 9,091 thousand, mainly caused by a reduction of the discount rate applicable for the
calculation of the actuarial loss on financial assumptions effective as of 1 January 2020.
Plan assets are managed and continually monitored by the pension fund. The effective return on plan assets in 2020
amounted to a loss of CHF 2,059 thousand (2019: gain of CHF 4,639 thousand) and resulted in a deficit of CHF 19,750
thousand for the pension plan recognized as non-current liability as of 31 December 2020 (31 December 2019: CHF 27,573
thousand).
Composition of plan assets
The plan assets are divided among the individual investment categories as follows:
In thousands of CHF
31 December 2020 31 December 2019
Assets held by insurance company (Switzerland)
Others (Switzerland)
Others (South Korea)
Total
80,284
403
2,105
82,792
68,334
1,181
2,215
71,730
124
Sensirion Annual Report 2020 Financial Report 15.2 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
2020
2019
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
(99,303)
71,730
(27,573)
(80,049)
61,567
(18,482)
(4,886)
(243)
–
(5,130)
–
193
(91)
102
(4,886)
(4,479)
(51)
(91)
(798)
–
(5,028)
(5,277)
–
636
(91)
545
(4,479)
(162)
(91)
(4,732)
Included in profit or loss
Current service (cost)
Interest (cost) income
Administration expenses
Total Included in profit or loss
Included in OCI
Remeasurements loss (gain):
Actuarial loss (gain) arising from:
– changes in demographic assumptions
– changes in financial assumptions
– experience adjustments
Return on plan assets excluding interest
income
Effect of movements in exchange rates
–
(1,562)
(1,645)
–
–
–
–
(39)
(1,562)
(13,040)
(1,645)
–
97
(2,252)
(2,252)
(68)
29
668
–
207
Total Included in OCI
(3,110)
(2,320)
(5,430)
(12,204)
Other
Contributions paid by the employer
–
17,675
17,675
Contributions paid by plan participants
(2,947)
2,947
Benefits (paid) / received
7,948
(7,341)
–
606
Total Other
5,001
13,281
18,281
–
(2,860)
1,087
(1,773)
–
–
–
4,003
(137)
3,866
3,675
2,860
(783)
5,752
(39)
(13,040)
668
4,003
70
(8,338)
3,675
–
304
3,979
Closing amount
(102,542)
82,792
(19,750)
(99,303)
71,730
(27,573)
Represented by
Net defined benefit liability – Switzerland
(100,255)
80,688
(19,568)
(96,245)
69,515
(26,730)
Net defined benefit liability – South Korea
(2,288)
2,105
(182)
(3,059)
2,215
(844)
In 2020, the Group contributed a voluntary prepayment of employer contributions of CHF 14,400 thousand to the Swiss
pension plan that led to a corresponding decrease on the net defined benefit liability. The Group expects to pay
CHF 3,783 thousand in contributions to its defined benefit plans in the next financial year.
125
Financial Report Sensirion Annual Report 2020 15.3 Actuarial assumptions
The following were the principal actuarial assumptions for the Swiss pension plan at the reporting date.
Switzerland
Discount rate
Future salary increase
Employee share of cost of the pension plan
Mortality table
31 December 2020 31 December 2019
0.10 %
1.00 %
50.00 %
0.20 %
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 contribu-
tions as currently defined in the plan regulations and based on an implicit future return on plan assets equal to the dis-
count 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 contributions 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 Sen-
sirion’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 2020,
the weighted-average duration of the defined benefit obligation was 21.9 years (2019: 22 years).
15.4 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:
In thousands of CHF
31 December 2020 31 December 2019
Increase Decrease Increase Decrease
Discount rate (0.25 % movement) – Switzerland
(5,315)
5,770
(5,135)
5,578
Future salary growth (0.5 % movement) – Switzerland
2,295
(2,191)
2,252
(2,121)
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide
an approximation 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 25,706 thousand (2019: CHF 35,950 thousand). The service costs for Switzerland would
be CHF 5,003 thousand instead (2019: CHF 4,390). The actual service costs including application of risk-sharing assump-
tions for the Swiss pension plan amount to CHF 4,464 thousand (2019: CHF 4,049 thousand).
126
Sensirion Annual Report 2020 Financial Report 16 Share-based payment arrangement
16.1 Description of share-based payment arrangements
Bonus and Restricted Share Unit Plan
The Group established a recurring bonus program under which an eligible employee who has not given or received notice
of termination 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 RSU granted within the Equity Bonus will be deter-
mined by the Group in its sole discretion at the grant date, which generally corresponds to mid-December of the annual
performance period. The RSU vest over a period of three years starting from the end of the election period.
The number of shares granted to employees amounts to 51,352 (2019: 18,967) and the number of RSU granted amounts to
12,930 (2019: 4,624). The fair value of one share at grant date amounts to CHF 52.90 (2019: CHF 41.70) and the fair value of
one RSU at grant date amounts to CHF 52.90 (2019: CHF 41.70). The values correspond or are derived from 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 3,749 (2019: 1,569) and the number of RSU granted amounts to 3,749 (2019: 1,569).
The estimated fair value of one share at grant date amounts to CHF 57.20 (2019: CHF 40.95) and the estimated fair value
of one RSU at grant date amounts to CHF 57.20 (2019: CHF 40.95). The values correspond or are derived from the listed
share price of the Company’s shares at 31 December 2020. These estimated fair values will be updated to reflect the
circumstances at the date of the next annual general meeting.
For 2020, the Group granted a total annual bonus amount of CHF 7,152 thousand (2019: CHF 2,564 thousand). The amount
is split between cash bonus of CHF 3,323 thousand (2019: CHF 1,452 thousand) and equity bonus of CHF 3,829 thousand
(2019: CHF 1,112 thousand).
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 was 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 had been vested if the employee had not
resigned or if the Group had not terminated the services of the employee by 15 January 2019. The remaining 50 % of the
allocated RSU had been vested at 15 January 2020 if the employee was not under notice by that time. The RSU were
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 amounted to less than 200 RSU, a corresponding cash amount replaced
the respective RSU.
The Group granted 560,267 RSU under the IPO Loyalty Share Program in 2018. The fair value of one RSU at grant date
amounted to CHF 35.90, whereas the amount that was paid in cash has been 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
127
Financial Report Sensirion Annual Report 2020 value of one RSU was derived from the bookbuilding 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. In 2019, the Group has recognized the second part of the IPO Loyalty Share Program
in profit or loss in the amount of CHF 6,549 thousand, including social security expenses of CHF 795 thousand. These
expenses were classified under “Administrative expenses” in the consolidated income statement.
According to the terms of the plan, 50 % of the allocated amount of RSU, in total 264,125 RSU, had been vested on
15 January 2019. The remaining 50 % of the allocated RSU were vested at 15 January 2020 provided that the employment
relationship still existed at the vesting date. All expenses out of the IPO Loyalty Share Program were recognized and settled
by the end of 2019.
16.2 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 2020 31 December 2019
Restricted share units – IPO Loyalty Share Program
Restricted share units – Bonus and Restricted Share Unit Plan
–
38,995
259,973
22,316
16.3 Reconciliation of outstanding RSU
The number and weighted-average exercise prices of RSU under the share-based payment arrangements were as follows:
In options
2020
Outstanding at 1 January
Exercised during the year
Granted during the year
Forfeited during the year
Outstanding at 31 December
Exercisable at 31 December
2019
Outstanding at 1 January
Exercised during the year
Granted during the year
Forfeited during the year
Outstanding at 31 December
Exercisable at 31 December
Number of RSU
Weighted-average
exercise price
(in CHF)
282,289
(259,757)
16,679
(216)
38,995
–
544,099
(264,125)
6,193
(3,878)
282,289
–
–
–
0.10
0.10
0.10
–
–
–
0.10
0.10
0.10
–
The RSU outstanding at 31 December 2020 has an exercise price of CHF 0.10 (31 December 2019: CHF 0.10) and a weighted-
average contractual life of 2.01 years (31 December 2019: 0.13 years).
128
Sensirion Annual Report 2020 Financial Report 17 Leases
17.1 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 2020 31 December 2019
13,014
36
11,911
23
The consolidated income statement shows the following amounts related to leases:
In thousands of CHF
2020
2019
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:
2,349
1,926
8
78
20
52
In thousands of CHF
2020
2019
Total cash outflows for leases
Additions to right-of-use assets
2,199
3,591
2,178
2,814
As of 31 December 2020, there were additional future leasing obligations with a total contract value of CHF 5,380 thousand
(31 December 2019: CHF 1,968 thousand) for which the leasing period has not yet started at year end.
17.2 Short-term leases and leases of low-value assets
The Group applies the short-term lease and leases of low-value assets exemption. Payments associated with short-term
leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. 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 are not exceeding an amount of CHF 5 thousand and mainly relate to equipment and small items of
office furniture.
129
Financial Report Sensirion Annual Report 2020 18 Income taxes
18.1 Tax income (expense) in the period
In thousands of CHF
Note
2020
2019
Current tax expense
Origination and reversal of temporary differences
Changes in tax rate
Deferred tax income (expense)
Total
(5,569)
1,577
–
1,577
(3,992)
(366)
1,456
147
1,603
1,237
18.4
18.2 Effective tax rate reconciliation
Income taxes paid or owed in the individual countries and deferred taxes are recognized as taxes. The expected tax rate
of 18.4 % (2019: 20 %) relates to the tax rate applicable at the domicile of Sensirion Holding AG. As a result of the Swiss tax
reform, the holding privilege for Sensirion Holding AG will no longer be applicable in the future. To reduce disadvantages,
the Canton of Zurich (headquarters of Sensirion) introduced certain provisions in the cantonal tax laws (e.g. patent box,
additional R&D deductions) including transitional measures (step-up mechanism or dual rate approach). At Sensirion,
these transitional measures will compensate the cash effects of the entry costs into the patent box introduced by the
Swiss tax reform.
This equates to the Group underlying tax rate of 18.4 % from 2020 onwards.
In thousands of CHF
Note
2020
2019
Profit (loss) before tax
Tax using the Group’s tax rate of 18.4 % (previous year: 20 %)
Tax effect of
– Non-deductible expenses
– Effect of companies with mixed tax rates
– Current year losses not recognized
18.5
Excess taxes deduction recognized in equity
Changes in tax rate
Effect of Swiss tax reform
Other
Income taxes
45,894
(8,444)
(43)
421
(722)
(202)
–
4,880
118
(3,992)
(3,983)
797
38
555
(311)
(206)
147
–
217
1,237
130
Sensirion Annual Report 2020 Financial Report 18.3 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
2020
Remeasurement of net defined benefit obligation
Foreign operations – foreign currency translation differences
Equity investments at FVOCI – net change in fair value
Other comprehensive income
2019
Remeasurement of net defined benefit obligation
Foreign operations – foreign currency translation differences
Equity investments at FVOCI – net change in fair value
Other comprehensive income
(5,514)
(792)
288
(6,018)
(8,408)
(1,940)
74
(10,274)
1,010
–
(431)
579
1,587
–
464
2,051
(4,504)
(792)
(143)
(5,439)
(6,821)
(1,940)
538
(8,223)
131
Financial Report Sensirion Annual Report 2020 18.4 Movement in deferred tax balances
Net balance
at 1 January
Recognized
in profit or
loss
Recognized
in OCI
Deferred tax
assets
Deferred tax
liabilities
Net
Balance at 31 December
In thousands of CHF
2020
Trade receivables
Inventories
Property, plant and equipment
Right-of-use assets
Financial assets
Intangible assets
Employee benefits (current)
Provisions
Lease liabilities
(793)
(1,190)
(2,771)
(2,236)
(467)
(136)
(397)
(190)
–
–
–
–
–
–
(431)
(1,904)
(1,406)
(1,011)
2,240
1,283
1,078
(89)
217
–
–
–
–
Employee benefits (non-current)
5,890
(2,451)
1,010
Tax losses carried forward
Tax assets (liabilities) before set-off
Set-off of tax
Net tax assets (liabilities)
2019
Trade receivables
Inventories
Property, plant and equipment
Right-of-use assets
Financial assets
Intangible assets
Employee benefits (current)
Provisions
Lease liabilities
Employee benefits (non-current)
Tax losses carried forward
4,747
2,729
1,566
1,577
–
–
1,566
1,577
(850)
(1,841)
(3,043)
(2,213)
(464)
(2,012)
(1,567)
(1,004)
2,070
4,358
4,478
57
651
272
(23)
–
108
161
(7)
170
(55)
269
–
579
–
579
–
–
–
–
–
–
–
–
1,587
–
464
–
(1,260)
(1,326)
(3,168)
(2,426)
(431)
(621)
(328)
(1,100)
2,457
4,449
7,476
–
–
–
–
–
–
–
–
2,457
4,449
7,476
1,260
1,326
3,168
2,426
431
621
328
1,100
–
–
–
3,722
14,382
10,660
–
(10,660)
(10,660)
3,722
3,722
–
(793)
(1,190)
(2,771)
(2,236)
(1,904)
(1,406)
(1,011)
2,240
5,890
4,747
1,566
–
–
–
–
–
–
–
–
2,240
5,890
4,747
793
1,190
2,771
2,236
–
1,904
1,406
1,011
–
–
–
12,877
11,311
Tax assets (liabilities) before set-off
(2,088)
1,603
2,051
Set-off of tax
Net tax assets (liabilities)
–
–
–
–
(11,311)
(11,311)
(2,088)
1,603
2,051
1,566
1,566
–
Deferred tax assets and liabilities are measured at the tax rates currently applicable in the individual countries and applied
to future taxation. Deferred tax assets capitalized on intangible assets also include part of the effect of the tax reducing
measures implemented due to the tax reform of the Swiss federal tax law, effective 1 January 2020, In subsequent periods,
these tax assets will be recovered by means of amortization. Deferred tax assets consist of temporary differences and tax
loss carry-forwards from individual subsidiaries. As of 31 December 2020, deferred tax assets were capitalized on tax loss
carry forwards in the amount of CHF 7,476 thousand (2019: CHF 4,747 thousand).
132
Sensirion Annual Report 2020 Financial Report 18.5 Unrecognized deferred tax assets
The Group has CHF 6,170 thousand of unrecognized tax loss carry forwards and tax credits available (2019: CHF 3,144
thousand).
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 2020
31 December 2019
Expires in 3 years
Expires in 4 years
Expires in 5 years or beyond
Total
1,547
1,014
3,609
6,170
309
203
722
1,234
1,587
1,557
–
3,144
318
311
–
629
133
Financial Report Sensirion Annual Report 2020 19 Property, plant and equipment
In thousands of CHF
Cost
Land
and buildings
Production
facilities
Under
construction
Other
Total
Opening amount 1 January 2020
49,876
74,833
Additions
Disposals
Reclassifications
Currency translation differences
300
–
–
(208)
6,210
(2,895)
3,005
(170)
5,315
1,180
16,339
146,363
1,094
8,784
–
(1,404)
(4,299)
(4,015)
(55)
1,010
(136)
–
(569)
Closing amount 31 December 2020
49,968
80,983
2,425
16,903
150,279
Accumulated depreciation and impairment
Opening amount 1 January 2020
Depreciation
Disposals
Currency translation differences
15,197
56,920
1,898
–
(7)
5,544
(2,873)
(31)
Closing amount 31 December 2020
17,088
59,560
–
–
–
–
–
10,070
82,187
2,013
9,455
(1,398)
(4,271)
(46)
(84)
10,639
87,287
Total carrying amount
32,880
21,423
2,425
6,264
62,992
Carrying amount pledged as security for liabilities
–
–
–
–
–
Cost
Opening amount 1 January 2019
Additions
Disposals
Reclassifications
Currency translation differences
49,573
737
–
44
(478)
70,045
3,730
(1,297)
2,352
3
5,312
4,130
–
(4,060)
(67)
14,572
139,502
1,652
(1,196)
1,450
(139)
10,249
(2,493)
(213)
(681)
Closing amount 31 December 2019
49,876
74,833
5,315
16,339
146,363
Accumulated depreciation and impairment
Opening amount 1 January 2019
Depreciation
Disposals
Currency translation differences
Closing amount 31 December 2019
Total carrying amount
13,334
1,876
–
(13)
15,197
34,679
52,248
5,860
(1,282)
94
56,920
17,913
–
–
–
–
–
5,315
9,080
2,207
74,662
9,943
(1,172)
(2,454)
(45)
10,070
6,269
36
82,187
64,176
Carrying amount pledged as security for liabilities
–
–
–
–
–
134
Sensirion Annual Report 2020 Financial Report 20 Goodwill and intangible assets
20.1 Reconciliation of carrying amounts
In thousands of CHF
Total
goodwill
Patents and
trademarks
Development
costs
Software
Under
construction
Other
intangibles
Total intangible
assets
Cost
Opening amount 1 Jan 2020
10,896
12,856
13,229
2,718
1,726
1,072
31,601
–
2,541
–
1,027
–
214
1,647
(622)
–
(1,060)
1,345
–
–
(1,345)
–
–
–
(5)
(165)
(80)
–
–
–
–
–
–
3,568
1,861
(1’682)
–
(85)
Closing amount 31 Dec 2020
10,731
13,801
16,055
2,927
1,408
1,072
35,263
Accumulated amortization
and impairment
Opening amount 1 Jan 2020
5,536
–
–
–
5,536
4,492
1,661
7,011
3,621
(622)
(1,060)
1,851
653
–
(18)
5,513
–
(2)
9,572
2,502
–
–
–
–
–
1,007
14,361
–
–
–
5,935
(1,682)
(20)
1,007
18,594
5,195
8,288
6,483
425
1,408
65
16,669
Opening amount 1 Jan 2019
11,150
9,238
11,215
2,516
636
1,072
24,677
–
1,309
–
1,489
3,953
(153)
–
–
–
574
131
169
–
38
(5)
(254)
(182)
Closing amount 31 Dec 2019
10,896
12,856
13,229
2,718
Accumulated amortization
and impairment
Opening amount 1 Jan 2019
5,413
–
–
123
5,536
3,514
1,161
(149)
(34)
4,492
4,914
1,966
–
131
7,011
1,219
629
–
3
1,851
–
–
–
–
–
2,798
4,122
(153)
213
(56)
1,072
31,601
759
248
–
–
10,406
4,004
(149)
100
1,007
14,361
–
–
(399)
–
1,726
–
–
–
–
–
Additions – internally
developed
Additions – separately
acquired
Disposals
Reclassifications
Currency translation
differences
Amortization
Disposals
Currency translation
differences
Closing amount
Total carrying amount
31 Dec 2020
Cost
Additions – internally
developed
Additions – separately
acquired
Disposals
Reclassifications
Currency translation
differences
Amortization
Disposals
Currency translation
differences
Closing amount
Total carrying amount
31 Dec 2019
–
–
–
–
–
–
–
–
5,360
8,364
6,218
867
1,726
65
17,240
135
Financial Report Sensirion Annual Report 2020 The Group capitalizes development costs in relation to specific projects considering a number of criteria that are outlined
in Note 5.7. Management applies assumptions in applying those criteria to its projects, especially in assessing the proba-
bility of future economic benefits. 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.
Internal development costs in the total amount of CHF 3,568 thousand (2019: CHF 2,798 thousand) have been capitalized
in the current financial year.
20.2 Impairment testing of goodwill
Goodwill at the level of cash-generating units (GCUs) is tested for impairment at least once per year or more frequently if
there are indications of impairment. The Group carries out annual impairment testing as of 31 December of each fiscal year.
Indications of impairment include, for example, a marked drop in the fair value of an asset, significant changes in the busi-
ness environment, substantial evidence of obsolescence or a change in expected income. The basis for the impairment test
is the calculation of the recoverable amount, which is the higher of fair value less costs to sell or the carrying amount.
If the amount of impairment exceeds the goodwill assigned to the CGU, the units of other asset must be written down
proportionately in line with their carrying amounts.
Goodwill is allocated to the Group’s CGUs as follows:
In thousands of CHF
31 December 2020 31 December 2019
CGU Automotive Solutions
Total Goodwill
5,195
5,195
5,360
5,360
Impairment test on CGU Automotive Solutions
The CGU Automotive Solutions comprises the sensor and module business of AIC, which encompasses the design, manu-
facturing 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 particulate matter (PM2.5) 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.
The values assigned to the key assumptions represent management’s assessment of future trends in the relevant indus-
tries 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.
In percent
Discount rate
Terminal growth rate
31 December 2020 31 December 2019
12.11 %
1.43 %
12.55 %
1.93 %
The discount rate was a pre-tax measure based on observable weighted average cost of capital (WACC) of comparable
companies in the relevant market.
136
Sensirion Annual Report 2020 Financial Report The basis of the discounted cash flow method in the Group is future cash flows derived from a five-year earnings planning.
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 compound 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.
Goodwill was subjected to the annual impairment test as of 31 December 2020 as well as in prior year. In the actual as well
as in previous period, the recoverable amount of the CGU Automotive Solutions was higher than its carrying amount. There-
fore, no impairment loss was recognized either in 2020 or in 2019.
20.3 Amortization
The amortization of patents, trademarks and development costs is included in “Research and development expenses”.
21 Inventories
In thousands of CHF
31 December 2020 31 December 2019
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
11,541
18,739
5,012
35,292
(2,312)
(6,511)
(8,823)
9,612
11,935
3,678
25,225
(1,425)
(1,822)
(3,247)
26,469
21,978
The valuation of work in progress, semi-finished and finished goods is underlying management estimation with regards to
planned production capacities that impact standard costs. Valuation allowances are calculated based on historical experi-
ence including management’s estimation that directly affects the carrying amount of inventories.
In 2020, inventory of CHF 59,987 thousand (2019: CHF 42,660 thousand) was recognized as expenses and included in
“Cost of sales”.
In addition, inventory allowances have increased by CHF 5,576 thousand (2019: increased by CHF 511 thousand) during
2020 mainly due to the uncertainty of the COVID-19 pandemic in future market demand.
137
Financial Report Sensirion Annual Report 2020 22 Trade and other receivables
In thousands of CHF
31 December 2020 31 December 2019
Trade receivables, gross
Allowance for doubtful receivables
Total trade receivables
Non-income tax receivables
Social security
Other
Total other receivables
26,702
(300)
26,402
3,852
1
3,602
7,455
21,652
(76)
21,576
1,138
249
2,055
3,442
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 27.3.
23 Share capital
23.1 Equity
As of 31 December 2020, the fully paid-up share capital of the parent company, Sensirion Holding AG, in the total amount
of CHF 1,557,335 (2019: CHF 1,529,298) is divided into 15,573,350 registered shares (2019: 15,292,984) with a nominal value
of CHF 0.10. Holders of these shares are entitled to dividends and 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
Capital increase from conditional share capital
Total in issue at 31 December
In shares
Total in issue at 1 January
Capital increase from conditional share capital
Total in issue at 31 December
2020
Registered shares
15,292,984
280,366
15,573,350
2019
Registered shares
15,140,172
152,812
15,292,984
In 2020, a total of 259,757 employee options were exercised at an exercise price of the nominal value of CHF 0.10 through a
conditional capital increase. The costs arising from the capital increase were deducted from the capital reserve and amounted
to CHF 125 thousand. In 2019, a total of 264,125 employee options were exercised at an exercise price of the nominal value of
CHF 0.10. The options were exercised through a conditional capital increase of 149,224 shares and the issue of 114,901 treasury
shares. The costs arising from the capital increase were deducted from the capital reserve and amounted to CHF 67 thousand.
138
Sensirion Annual Report 2020 Financial Report 23.1.1 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 suspended until those shares are reissued.
23.1.2 Conditional capital
As of 31 December 2020, the Company’s conditional capital amounts to CHF 289 thousand, encompassing 2,887,437
shares each with a nominal value of CHF 0.10. In prior year, the company’s conditional capital amounted to CHF 332 thou-
sand, encompassing 3,319,439 shares with a nominal value of CHF 0.10.
The Company’s conditional capital is composed as follows:
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
23.2 Nature and purpose of reserves
23.2.1 Capital reserve
2020
2019
1,431,620
1,455,817
1,452,229
1,455,817
–
411,393
2,887,437
3,319,439
The capital reserve comprises share premiums, the gain or loss on sale of treasury shares, 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.
23.2.2 Treasury shares reserve
The reserve for the Company’s treasury shares comprises the cost of the Company’s shares directly held by the Group. As
of 31 December 2020, the Group held 75,857 of the Company’s registered shares (2019: 75,857 registered shares). The
treasury shares held at 31 December 2020 account for 0.5 % of the issued capital.
23.2.3 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.
23.2.4 Revaluation reserve
The revaluation reserve relates to the fair value revaluation of equity investments at FVOCI, including income tax effects.
23.2.5 Retained earnings
The retained earnings include the accumulated net profits of the Group and remeasurements of the net defined benefit
liability, including income tax effects.
23.3 Dividends
Holders of registered shares participate in any dividends declared by the Company. The Company has not paid any
dividends in the periods presented.
139
Financial Report Sensirion Annual Report 2020 23.4 OCI accumulated in reserves, net of tax
The following OCI accumulated in reserves are attributable to owners of Sensirion Holding AG. They are expressed net
of tax.
In thousands of CHF
31 December 2020
Note
Translation
reserve
Revaluation
reserve
Retained
earnings
Total
Remeasurements of defined benefit liability
Foreign operations – foreign currency translation differences
Equity investments at FVOCI – net change in fair value
Total
31 December 2019
Remeasurements of defined benefit liability
Foreign operations – foreign currency translation differences
Equity investments at FVOCI – net change in fair value
Total
18.3
18.3
18.3
18.3
18.3
18.3
–
(792)
(792)
–
(1,940)
(1,940)
–
–
(143)
(143)
–
–
538
538
(4,504)
(4,504)
–
–
(792)
(143)
(4,504)
(5,439)
(6,821)
–
–
(6,821)
(1,940)
538
(6,821)
(8,223)
24 Capital management
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 arrangements, management meets the primary capital risk objective.
In thousands of CHF
31 December 2020 31 December 2019
Total liabilities
Less: cash and cash equivalents
Less: financial assets (short term deposit)
Net cash (debt)
Total equity
Net cash (debt) to equity ratio
(73,135)
61,933
30,000
18,798
196,053
9.6 %
(59,258)
60,321
–
1,063
156,239
0.7 %
140
Sensirion Annual Report 2020 Financial Report 25 Financial liabilities
The table below provides reconciliation of movements of financial liabilities to cash flows arising from financing activities.
Due to the negative interest rate level, negative interests of CHF 66 thousand had to be paid in 2020 (31 December 2019:
CHF 13 thousand).
In thousands of CHF
Balance at 1 January 2020
Changes from financing cash flows
Payment of lease liabilities
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 2020
Balance at 1 January 2019
Changes from financing cash flows
Payment of lease liabilities
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 2019
Note
Lease liabilities
17
17
12,341
(1,842)
(1,842)
(349)
3,591
357
(357)
3,591
13,741
11,365
(1,774)
(1,774)
(64)
2,814
404
(404)
2,814
12,341
141
Financial Report Sensirion Annual Report 2020
26 Provisions
In thousands of CHF
Current provisions
Non-current provisions
Total provisions
Opening amount 1 January 2020
Additions
Closing amount 31 December 2020
Warranty
provisions
1,876
3,959
5,835
–
5,835
5,835
Total
1,876
3,959
5,835
–
5,835
5,835
Warranty provisions are recognized for the first time in 2020 for newly launched sales projects due to the strong increase in the
automotive sector. The warranty provisions have been estimated based on losses and warranty expenses to date and future losses.
The calculation is based on various scenarios. Sensirion expects to settle the majority of the liability over the next three years.
27 Financial instruments
27.1 Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities at the reporting
date, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and
financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
As of 31 December 2020
Carrying amount
Fair value
In thousands of CHF
Financial
assets at
amortized
cost
FVPL –
Fair value
through
P/L
FVOCI –
equity
instru-
ments
Other
financial
liabilities
Note
Total
Level 1
Level 2
Level 3
Total
Financial assets measured at fair value
Equity securities
Investment in convertible bond with
associate
27.2
22
Total financial assets measured at fair value
–
–
–
–
7,389
858
858
–
7,389
Financial assets not measured at fair value
Trade receivables
Financial asset (short term deposit)
Cash and cash equivalents
Total financial assets not measured
at fair value
22 26,402
30,000
61,933
118,335
Financial liabilities not measured at fair value
Trade payables
Accrued expenses
Lease liabilities
Total financial liabilities not measured
at fair value
25
–
–
–
–
–
–
–
–
–
–
–
–
142
–
–
–
7,389
858
8,247
– 26,402
– 30,000
– 61,933
– 118,335
7,032
7,032
9,544
9,544
13,741
13,741
–
–
–
–
–
–
–
–
30,317
30,317
–
–
–
–
–
–
–
–
–
–
–
– 7,389
7,389
–
858
858
– 8,247
8,247
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Sensirion Annual Report 2020 Financial Report As of 31 December 2019
Carrying amount
Fair value
In thousands of CHF
Financial
assets at
amortized
cost
FVPL –
Fair value
through
P/L
FVOCI –
equity
instru-
ments
Other
financial
liabilities
Note
Total
Level 1
Level 2
Level 3
Total
Financial assets measured at fair value
Equity securities
Investment in convertible bond with
associate
27.2
22
Total financial assets measured at fair value
–
–
–
–
3,519
500
500
–
3,519
–
–
–
3,519
500
4,019
Financial assets not measured at fair value
Trade receivables
Cash and cash equivalents
Total financial assets not measured
at fair value
22
21,576
60,321
81,897
Financial liabilities not measured at fair value
Trade payables
Accrued expenses
Lease liabilities
Total financial liabilities not measured
at fair value
25
–
–
–
–
27.2 Fair value measurements
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 21,576
– 60,321
– 81,897
5,472
5,472
3,979
3,979
12,341 12,341
21,792 21,792
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3,519 3,519
500
500
4,019
4,019
–
–
–
–
–
–
–
–
–
–
–
–
–
–
The fair value of equity securities classified in level 3 has been determined by discounting 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. As of
31 December 2020, the growth rates beyond the detailed planning periods have been set between 1.0 % and 2.0 % (2019:
between 1.0 % and 2.0 % ). The risk adjusted discount factor used for determination of fair value are set by 10.0 % and 11.0 %
(2019: 11.00 % and 36.29 %). The projected average EBITDA amounts to between CHF 1,125 thousand and CHF 4,243 thou-
sand (2019: CHF 2,142 thousand and CHF 4,716 thousand).
The fair value of the financial investment in MaxWell Biosystems AG was determined on the basis of the financing round
together with third parties taking place shortly before the end of the year 2020. The financing round involved a capital
increase with a total financing amount of CHF 4,000 thousand. The fair value of the financial investment is measured at
FVOCI and assigned to level 3 in the fair value hierarchy.
The fair value for other receivables measured at FVPL and assigned to level 3 has been determined by discounting the estimated
future cash flows using a risk adjusted discount factor of 11.00 % and a growth rate of 2.00 % (2019: discount factor of 11.00 %
and a growth rate of 2.00 %). Other receivables measured at FVPL include mainly a convertible loan agreement to an associated
company of the Sensirion Group. The maximum amount that may be granted amounts to CHF 1,500 thousand. As of 31 Decem-
ber 2020, a total of CHF 1,000 thousand has been granted. Interest rates for the loan have been set between 4 % and 6 %.
The estimated fair value would increase (decrease) if:
• the annual revenue growth rate was higher (lower);
• the EBITDA were higher (lower); or
• the risk-adjusted discount rate was lower (higher).
143
Financial Report Sensirion Annual Report 2020 The valuation model for financial liabilities not measured at fair value, which mainly consists of lease liabilities, considers
the present value of expected payments that have been discounted by using an incremental borrowing rate. Possible
changes at the reporting date to one of the significant unobservable inputs in the fair value measurement of equity
securities at FVOCI would have the following effects:
Effect in thousands of CHF
Annual revenue growth rate (10 % movement)
Average EBITDA (10 % movement)
OCI, net of tax
31 December 2020
31 December 2019
Increase Decrease Increase Decrease
749
392
(749)
(392)
542
347
(542)
(347)
The following table shows a reconciliation in respect of recurring level 3 fair values.
In thousands of CHF
Equity securities
Equity securities
Other receivables Other receivables
2020
2019
2020
2019
Opening amount
Acquisition of capital
Change in status of investment
Acquisition of convertible loan
Profit (loss) included in other comprehen-
sive income
Closing amount
3,519
3,000
582
–
288
7,389
3,445
–
–
–
74
3,519
500
–
–
500
(167)
833
–
–
–
500
–
500
27.3 Financial risk management
The Group has exposure to credit risk, liquidity risk and market risk arising from financial instruments that 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 manage-
ment framework. 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 have not 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, man-
agement 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, Sensirion uses average historical loss rates for the preceding
144
Sensirion Annual Report 2020 Financial Report three annual reporting periods. Loss rates are adjusted to the current economic conditions and via macroeconomic overlay
to consider forward-looking information.
As a response to the COVID-19 pandemic, the Group has reassessed the credit risks as well as the expected credit losses
of accounts receivable. Consequently, impairment allowance on accounts receivable increased by CHF 224 thousand as of
31 December 2020.
The following table provides information about the exposure to credit risk and ECLs for trade receivables as at 31 Decem-
ber 2020:
In thousands of CHF
Current (not past due)
1-30 days past due
31-60 days past due
61-90 days past due
Over 90 days past due
Total
ECL rate
Gross carrying amount
trade receivables
Impairment allowance
Credit-impaired
31 December 2020
0.72 %
2.07 %
1.53 %
65.61 %
79.42 %
21,990
4,097
568
5
42
26,702
(130)
(80)
(59)
(3)
(28)
(300)
No
No
No
No
Yes
Details of concentration of revenue are included in Note 7.
The maximum exposure to credit risk for trade receivables by geographic region was as follows:
In thousands of CHF
31 December 2020 31 December 2019
USA
Hong Kong
China
South Korea
Germany
Thailand
Japan
Switzerland
Other
Total
7,733
3,259
2,848
2,817
1,914
1,889
1,287
162
4,493
26,402
1,928
2,825
2,857
3,374
4,025
1,721
1,200
180
3,466
21,576
The Group maintains business relationships over a variety of geographical areas.
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:
Loss allowance details
In thousands of CHF
Balance at 1 January
Amounts written off
Net remeasurement of loss allowance
Balance at 31 December under IFRS 9
2020
2019
Individual impairments Individual impairments
76
–
224
300
90
–
(14)
76
145
Financial Report Sensirion Annual Report 2020 Guarantees
The Group’s policy is to provide financial guarantees to subsidiaries. At 31 December 2020, 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
(2019: CHF 40,000 thousand).
27.3.3 Liquidity risk
A liquidity risk arises if future payment obligations of the Group cannot be covered by its available liquidity or correspond-
ing credit facilities. 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 unaccept-
able losses or risking damage to the Group’s reputation. Suitable processes are in place within the Group with which cash
inflows or outflows and maturities are monitored and controlled on an ongoing basis.
Within the frame of a rolling liquidity plan, Sensirion ensures that sufficient liquidity to cover the short-term operational
needs is continuously available. Within the liquidity plan, Sensirion includes cash and cash equivalents, lines of credit and
possibilities to increase share capital. 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 2020 (31 December 2019: CHF 40,000 thousand).
No credit lines are used as of 31 December 2020 (31 December 2019: CHF 0).
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross
and undiscounted, 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 2020
Non-derivative financial liabilities
Trade payables
Lease liabilities
7,032
7,032
7,032
–
–
–
–
13,741
15,025
442
2,184
2,577
5,786
4,036
Total non-derivative financial liabilities
20,773
22,057
7,474
2,184
2,577
5,786
4,036
As of 31 December 2019
Non-derivative financial liabilities
Trade payables
Lease liabilities
5,472
5,472
5,472
12,341
13,555
364
Total non-derivative financial liabilities
17,813
19,027
5,836
–
1,746
1,746
–
3,836
3,836
–
3,069
3,069
–
4,540
4,540
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 respective functional currencies of the Group companies. The main exposure arises from sales trans-
actions denominated in USD and EUR and other currencies deviating 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.
146
Sensirion Annual Report 2020 Financial Report The summary quantitative data about the Group’s exposure to currency risk is as follows:
In thousands of CHF
USD
EUR
KRW
As of 31 December 2020
Cash and cash equivalents
Trade receivables
Trade payables
Net statement of financial position exposure
As of 31 December 2019
Cash and cash equivalents
Trade receivables
Trade payables
Net statement of financial position exposure
4,818
7,692
(1,692)
10,818
7,603
4,295
(1,721)
10,177
6,194
6,367
2,342
5,941
(860)
(1,301)
11,701
6,982
2,234
2,251
(485)
4,000
1,036
2,712
(740)
3,008
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
Strengthening
Weakening
Strengthening
Weakening
Profit or loss
Equity, net of tax
As of 31 December 2020
EUR (10 % movement)
USD (10 % movement)
KRW (10 % movement)
As of 31 December 2019
EUR (10 % movement)
USD (10 % movement)
KRW (10 % movement)
The following significant exchange rates have been applied:
In CHF
Euro (EUR) 1
US Dollar (USD) 1
South-Korean Won (KRW) 1,000
1,340
8,511
(1,340)
(8,511)
–
–
1,340
8,511
1,909
(1,340)
(8,511)
(1,909)
2,854
5,535
–
(2,854)
(5,535)
–
2,854
5,535
1,970
(2,854)
(5,535)
(1,970)
Average rate
Year-end spot rate
2020
2019
2020
2019
1.0825
0.9581
0.8077
1.1276
1.0044
0.8673
1.0822
0.8812
0.8110
1.0931
0.9836
0.8367
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, inter-
est rate risk is not considered to be significant for the Group.
147
Financial Report Sensirion Annual Report 2020 28 Related parties
As part of its normal business activities, the company maintains relations with associated companies as well as trans-
actions with key management personnel.
Transactions with key management personnel
Key management personnel compensation comprised the following:
In thousands of CHF
2020
2019
Short-term employee benefits
Post-employment benefits
Share-based payment
Total
2,434
372
433
3,239
2,441
366
140
2,947
Compensation of the Group’s key management personnel includes salaries, non-cash benefits, share-based payments and
contributions to a post-employment defined benefit plan. Apart from the payments mentioned above, no payments were
made on a private basis or via consulting companies to either an executive or a non-executive member of the Board or a
member of Group Management. As of 31 December 2020, there were no loans, advances or credits due to the Sensirion
Group or any of its subsidiaries by any of the members of the Board or the Group Management.
Other related party disclosures
In thousands of CHF
Other receivables
In thousands of CHF
Sales and other income
31 December 2020 31 December 2019
858
2020
114
500
2019
83
The Sensirion Group entered into convertible loan agreements with its associated company. The maximum amount
that may be granted to its associated company amounts to CHF 1,500 thousand. As of 31 December 2020, a total of
CHF 1,000 thousand has been granted. The loan is measured at FVPL and assigned to level 3 of the fair value hierarchy
(see Note 27.1).
148
Sensirion Annual Report 2020 Financial Report
29 Subsequent events
The consolidated financial statements were approved for publication by the Board of Directors on 8 March 2021. The
approval of the consolidated financial statements by the shareholders will take place at the Annual Shareholders’ Meeting.
On 11 February 2021, and with economic effect from the same date, Sensirion Holding AG acquired 100 % of the shares of
Qmicro B.V. based in Enschede, The Netherlands. Qmicro B.V. develops, manufactures, and supplies micro gas analyzers
based on microelectromechanical gas chromatography technology. With this acquisition, Sensirion expands its gas
sensing portfolio from components and modules to stand-alone micro gas analyzers for industrial applications.
The purchase price consists of the cash purchase price of EUR 12,500 thousand and a contingent purchase price compo-
nent (earn-out agreement). The earn-out component is calculated and determined based on the sales generated by the
Company in the earn-out period. The total earn-out amount that could become payable is set between EUR 0 and a
maximum amount of EUR 7,000 thousand. The earn-out period begins on 1 January 2023 and ends on 31 December 2023.
At the time of acquisition, the net assets of Qmicro B.V. amounted to a provisional value of EUR 1,361 thousand. The assets
acquired and liabilities assumed have not yet been subjected to a provisional purchase price allocation at the time of pub-
lication of the financial report.
No other events have occurred between 31 December 2020 and 8 March 2021 that would necessitate adjustments to the
carrying values of the Sensirion Group’s assets or liabilities, or which require additional disclosure.
30 Change in accounting standard
The Board of Directors of Sensirion Holding AG has decided to change the Group’s accounting standard as per the next
interim consolidated financial statements as at and for the six months ended 30 June 2021 from IFRS to Swiss GAAP FER
with a transition date as of 1 January 2020. Swiss GAAP FER is a recognized, comprehensive and less granular set of
accounting standards that will allow the Group to continue publishing high quality and transparent financial reports in
compliance with the requirement to present a true and fair view.
The conversion from IFRS to Swiss GAAP FER will impact the consolidated financial statements mainly in the following areas:
•
Goodwill identified in acquisitions will be offset directly with equity. Under IFRS, goodwill was capitalized and not
amortized but tested annually for impairment.
•
According to Swiss GAAP FER 16 “Pension benefit obligations”, the existing economic obligations or benefits relating to
the Swiss pension fund are measured based on the pension fund’s financial statements in accordance with Swiss GAAP
FER 26 “Accounting of pension plans”. An economic obligation is recognized as a liability if the requirements for the
recognition of a liability are met. An economic benefit is capitalized provided that it is permitted and intended to be used
for future Group pension contributions. Freely available employer contribution reserves are capitalized. Under IFRS,
defined benefit plans were measured using the projected unit credit method and recognized in accordance with IAS 19.
As a result, the employee benefits liability is generally higher under IFRS than under Swiss GAAP FER.
•
Leases that were generally on-balance for the Group as a lessee will be generally treated as operating leases under Swiss
GAAP FER and the lease payments recognised in profit or loss.
The Swiss GAAP FER restatement as of 1 January 2020 will be published in the Group’s half-year report as at 30 June 2021.
149
Financial Report Sensirion Annual Report 2020
Auditor’s Report
150
Sensirion Annual Report 2020 Financial Report 1 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 2020 and the consolidated income statement, 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 consoli-dated financial statements, including a summary of significant accounting policies. In our opinion the consolidated financial statements (pages 102 to 149) give a true and fair view of the consoli-dated financial position of the Group as at 31 December 2020, 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 Au-diting 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 International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethi-cal 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 opin-ion. Key Audit Matters REVENUE RECOGNITION INVENTORY VALUATION 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 pro-vide a separate opinion on these matters. 151
Financial Report Sensirion Annual Report 2020 2 REVENUE RECOGNITION Key Audit Matter Our response Revenue is the basis for evaluating the course of busi-ness of the Group and is thus a focus area of internal target setting and external expectations. These expec-tations 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 ac-crual principle is not correctly applied. We analysed the processes set up to ensure a correct application of the accrual principle. We identified inter-nal controls with regards to revenue recognition and tested operating effectiveness of selected controls ap-plying a sampling method. Furthermore, we performed, amongst others, the follow-ing procedures: — We evaluated the application of the accrual principle as of 31 December 2020 on a sample basis by com-paring 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 adjust-ments to revenue had been recognised in the ap-propriate financial period. — We assessed profit margins and deviation analyses, 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 accu-racy of this population. For further information on revenue recognition refer to the following: — Note 5.1 to the consolidated financial statements — Note 8 to the consolidated financial statements 152
Sensirion Annual Report 2020 Financial Report 3 INVENTORY VALUATION Key Audit Matter Our response Inventory forms a significant part of the Group’s assets, amounting to MCHF 26.5 as at 31 December 2020. The valuation of work in progress, semi-finished and finished goods is underlying management judgements with re-gards to planned production capacities which impact standard costs. The valuation allowances are set up based on historical experience and management’s judgement on projected future sales and usage of inventory items. This judge-ment directly affects the carrying amount of inventories. 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 calcu-lation to underlying actual data, and we evaluated underlying labour costs by comparing actual rates to budget rates and the deviations thereof. — 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 21 to the consolidated financial statements Other Information in the Annual Report The Board of Directors is responsible for the other information in the annual report. The other information com-prises all information included in the annual report, but does not include the consolidated financial statements, the stand-alone financial statements of the company, the compensation 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 infor-mation 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 materi-ally 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. 153
Financial Report Sensirion Annual Report 2020 4 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 in-cludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit con-ducted in accordance with Swiss law, ISAs and Swiss Auditing Standards will always detect a material misstate-ment 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 ba-sis 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 mis-statement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, for-gery, 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. — 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 ac-tivities 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 inter-nal 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 rel-evant ethical requirements regarding independence, and communicate with them all relationships and other mat-ters that may reasonably be thought to bear on our independence, and where applicable, actions taken to elimi-nate threats or safeguards applied. From the matters communicated with the Board of Directors or its relevant committee, we determine those mat-ters 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 mat-ter 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. 154
Sensirion Annual Report 2020 Financial Report 5 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 inter-nal control system exists, which has been designed for the preparation of consolidated financial statements ac-cording to the instructions of the Board of Directors. We recommend that the consolidated financial statements submitted to you be approved. KPMG AG Silvan Jurt Licensed Audit Expert Auditor in Charge Matthias Bachmann Licensed Audit Expert Zurich, 8 March 2021 KPMG AG, Räffelstrasse 28, CH-8036 Zurich © 2021 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member firm of the KPMG global organization of independent member firms affili-ated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. 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
Amortization on intangible assets
Financial income
Financial expense
Income taxes
Total expenses
Profit for the year
Note
1.6
2.5
2.5
2020
7,738
7,738
(1,024)
(1,110)
(16)
583
(1,084)
(712)
(3,363)
2019
5,281
5,281
(936)
(981)
(19)
608
(331)
(60)
(1,719)
4,375
3,562
155
Financial Report Sensirion Annual Report 2020 Balance Sheet
In thousands of CHF
Note 31 December 2020 31 December 2019
2.1
2.1
2.2
2.4
2.3
14,740
30,000
1,025
95
45,860
98,606
21,522
37
120,165
166,025
23
127
3,100
500
3,750
17,745
–
549
20
18,314
110,394
16,716
53
127,163
145,477
32
74
–
105
211
1,557
1,529
127,438
4,469
603
1,735
22,098
4,375
162,275
166,025
114,901
4,400
603
1,735
18,536
3,562
145,266
145,477
Assets
Cash and cash equivalents
Financial assets
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
Other liabilities
– to third parties
– to companies in which the entity holds an investment
Accrued expenses
Total current liabilities
Equity
Share 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 for the year
Total equity
Total liabilities and equity
156
Sensirion Annual Report 2020 Financial Report Notes to the Financial Statements
of Sensirion Holding AG
1 Principles
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 valu-
ation principles applied are described below. It should be noted that, to ensure the company’s going concern, the
company’s financial statements may be influenced 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 exchange rate at the
balance sheet date, unrealized losses are recognized immediately whereby unrealized profits are not recognized. Invest-
ments 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.
1.3 Investments
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 16 of the Consolidated Financial Statements on pages 127
to 128) 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.
1.6 Revenue from royalties
Sensirion Holding AG charges its subsidiaries royalties. The royalties are based on the revenue that is generated by the
subsidiaries using the patented technology of Sensirion Holding AG.
157
Financial Report Sensirion Annual Report 2020
1.7 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.
2 Disclosure on balance sheet and income
statement items
2.1 Financial assets
In thousands of CHF
31 December 2020
31 December 2019
Current financial assets
Time deposit
Total current financial assets
Non-current financial assets
Clarity Movement, Co.
MaxWell Biosystems AG
Loans to subsidiaries
Total non-current financial assets
30,000
30,000
524
3,300
94,782
98,606
–
–
1,075
300
109,019
110,394
Subordinated loans to the subsidiary Sensirion Automotive Solutions AG amount to CHF 44,543 thousand (31 December
2019: CHF 44,285 thousand).
2.2 Investments
In thousands of CHF
a) Direct investments
Company, location
Sensirion AG, Stäfa (Switzerland)
31 December 2020
31 December 2019
Purpose
Share capital
in % Share capital
in %
Production, sales,
development
CHF
2,000,000
100
2,000,000
Sensirion China Co. Ltd., Shenzhen
(China)
Sensirion Inc., Chicago (USA)
Sales
Sales
RMB
USD
1,260,000
660,000
100
100
1,260,000
660,000
Sensirion Japan Co. Ltd., Tokyo (Japan)
Sales
JPY
25,000,000
100
25,000,000
Sensirion Korea Co. Ltd., Anyang-Si
(South Korea)
Sensirion Taiwan Co. Ltd., Hsinchu
(Taiwan)
Sales
KRW
100,000,000
100
100,000,000
Sales
TWD
25,000,000
100
25,000,000
Sensirion Automotive Solutions AG,
Stäfa (Switzerland)
Production, sales,
development
Sensirion Hungary Kft., Budapest
(Hungary)
Production
IRsweep AG, Stäfa (Switzerland)
Development
Lumiphase AG, Zürich (Switzerland)
Development
158
CHF
100,000
100
100,000
HUF
CHF
CHF
3,000,000
100
166,667
133,323
33
25
–
166,667
–
–
100
100
100
100
100
100
100
–
33
Sensirion Annual Report 2020 Financial Report
b) Significant indirect investments
Sensirion Automotive Solutions Inc.,
Eaton Rapids (USA)
Sales
USD
250,000
100
250,000
Sensirion Automotive Solutions Korea
Co. Ltd., Seoul (South Korea)
Production, sales,
development
Sensirion Automotive Solutions
(Shanghai) Co. Ltd., Shanghai (China)
Production, sales,
development
KRW 15,000,000,000
100
–
RMB
28,450,000
100
28,450,000
100
100
100
2.3 Treasury shares and treasury participation certificates
Held by subsidiary Sensirion AG
In thousands of CHF
2020
2019
Treasury shares nom. CHF 0.10
Stock at 1 January
Book value at 1 January
Sales
Selling price
Stock at 31 December
Book value at 31 December
75,857
1,735
–
–
75,857
1,735
241,351
2,509
(165,494)
(774)
75,857
1,735
2.4 Legal capital reserves
Reserves from capital contributions in the amount of CHF 114,833 thousand have been confirmed by the Federal Tax
Authority. The additional increase of the reserves from capital contributions in the amount of CHF 12,537 thousand 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 Financial result
In thousands of CHF
Financial income
Financial expenses
Total
2020
583
(1,084)
(501)
2019
608
(331)
277
The financial income of CHF 583 thousand (prior year: CHF 608 thousand) arises mainly from interest income from loans
to subsidiaries. Financial expenses in the amount of CHF 1,084 thousand (prior year: CHF 331 thousand) mainly include
valuation differences of financial assets as of 31 December 2020.
3 Other information
3.1 Full-time equivalents
Sensirion Holding AG has no employees.
159
Financial Report Sensirion Annual Report 2020 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 guarantees 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 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
2020
Quantity
Value
Quantity
51,352
30,089
81,441
2,942
1,724
4,667
18,967
265,189
284,156
2019
Value
779
10,886
11,665
3.5 Shares held by members of the Board of Directors
and the Executive Committee
The members of the Board of Directors and the Executive Committee (including related parties) held the following number
of shares and RSUs as of 31 December:
Board of Directors
Dr. Moritz Lechner, Co-Chairman
Dr. Felix Mayer, Co-Chairman1
Ricarda Demarmels, member
Heinrich Fischer, member
François Gabella, member
Dr. Franz Studer, 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
871,900
871,900
250
117,781
–
–
1,861,831
Shares
42,052
5,827
11,006
12,490
19,031
8,338
98,744
2020
RSUs
–
–
–
–
–
–
–
2020
RSUs2
2,700
1,218
1,207
891
1,584
1,307
8,907
Shares
871,900
871,900
250
111,506
–
–
1,855,556
Shares
36,556
10,911
9,003
10,335
15,688
6,488
88,981
2019
RSUs
–
–
–
–
–
–
–
2019
RSUs2
5,904
2,654
2,250
2,294
3,649
1,919
18,670
1 Related parties: Including shares held by Fondation des Fondateurs, Zurich, Switzerland.
2 Includes RSUs from the Bonus. In 2019, it also included RSUs from the Restricted Share Plan of the IPO Loyalty Share Program that were fully
executed in 2020 (see Note 1.5).
160
Sensirion Annual Report 2020 Financial Report 3.6 Significant shareholders
As of 31 December 2020, the following shareholders held more than 3 % of the shares:
Shareholder
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 AG
Chase Nominees Ltd.2
Gottlieb Knoch, Zug, Switzerland
T. Rowe Price Associates, Inc., Baltimore, United States
Davent Holding AG, Wollerau, Switzerland3
2020
% of
voting rights
Shares
5,094,670
32.7 %
1,159,071
768,666
580,128
550,800
7.4 %
4.9 %
3.7 %
3.5 %
1 The beneficial owner of 7-Industries Holding B.V. is Mrs. Ruthi Wertheimer, Herzliya, Israel. The beneficial owner of EGS Beteiligungen AG, Zürich,
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 32.2 % (31 December 2019: 32.8 %) 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, Wollerau, Switzerland.
4 Subsequent events
Subsequent events are disclosed in note 29 on page 149 of the consolidated financial report 2020.
Proposed appropriation
of available earnings
In thousands of CHF
Retained earnings brought forward
Net profit for the year
Available earnings
2020
22,098
4,375
26,473
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
2020
26,473
161
Financial Report Sensirion Annual Report 2020 Auditor’s Report
162
Sensirion Annual Report 2020 Financial Report 1 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 2020, and the income statement for the year then ended, and notes to the financial statements, includ-ing a summary of significant accounting policies. In our opinion the financial statements (pages 155 to 161) for the year ended 31 December 2020 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 ac-cordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opin-ion. Report on Key Audit Matters based on the circular 1/2015 of the Federal Audit Oversight Authority 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. We have determined that there are no key audit matters to com-municate in our report. 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 provi-sions of Swiss law and the company’s articles of incorporation, and for such internal control as the Board of Direc-tors determines is necessary to enable the preparation of financial statements that are free from material mis-statement, whether due to fraud or error. In preparing the financial statements, the Board of Directors is responsible for assessing the entity’s ability to con-tinue 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 opin-ion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accord-ance with Swiss law and Swiss Auditing Standards will always detect a material misstatement when it exists. Mis-statements 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 state-ments. 163
Financial Report Sensirion Annual Report 2020 2 As part of an audit in accordance with Swiss law and Swiss Auditing Standards, we exercise professional judg-ment and maintain professional scepticism throughout the audit. We also: — Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or er-ror, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suffi-cient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement re-sulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, inten-tional 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 in-ternal 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 ma-terial 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 condi-tions 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 inter-nal 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 rel-evant ethical requirements regarding independence, and communicate with them all relationships and other mat-ters that may reasonably be thought to bear on our independence, and where applicable, actions taken to elimi-nate threats or safeguards applied. From the matters communicated with the Board of Directors or its relevant committee, we determine those mat-ters 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 inter-nal 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 com-pany’s articles of incorporation. We recommend that the financial statements submitted to you be approved. KPMG AG Silvan Jurt Licensed Audit Expert Auditor in Charge Matthias Bachmann Licensed Audit Expert Zurich, 8 March 2021 KPMG AG, Räffelstrasse 28, CH-8036 Zurich © 2021 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member firm of the KPMG global organization of independent member firms affili-ated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Shareholder Information
Valor symbol
Reuters symbol
Bloomberg symbol
Valor number
ISIN
End of fiscal year
Exchange
Trading currency
Listed since
SENS
SENSI.S
SENS.SW
40,670,512
CH 040 670512 6
31 December
SIX Swiss Exchange
CHF
22 March 2018
Number of issued shares
(as recorded in the commercial register)
Nominal value
15,573,350
CHF 0.10
Accounting standard
IFRS (International Financial Reporting Standard)
2020 full-year results and annual report
Capital markets day
Annual general meeting
2021 half-year results and interim report
Financial Calendar
16 March 2021
25 March 2021
18 May 2021
25 August 2021
Contact
For further information, please contact:
Andrea Wüest
Director Investor Relations and M&A
Phone +41 44 927 11 40
andrea.wueest@sensirion.com
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Sensirion Annual Report 2020 Shareholder Information
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 assump-
tions 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 for-
ward-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 conditions affecting the 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 forward-look-
ing 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 mea-
sures 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
Disclaimer Sensirion Annual Report 2020
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