Dpreview explained it pretty well on crop
" There is a caveat here, which is that the LX100 isn't actually using the entire sensor, instead cropping it to allow for multi-aspect shooting (just as its predecessor did). Thus, the effective sensor area on the LX100 is really 1.5X larger than 1" and 4.3X the size of 1/1.7". In our experience, the added creative encouragement offered by the multi-aspect approach, combined with a conveniently-placed aspect ratio switch is more valuable than the extra couple of megapixels and larger lens that a full-sensor design would require."
Source here http://www.dpreview.com/previews/panasonic-lumix-dmc-lx100
i see, thanks LP!