Note 11 - Financial instruments

Financial assets, Group
	Financial assets measured at fair value in profit and loss
SEK million, 31 December 2013	Holdings for trading	Classified on the initial recognition date	Investments held to maturity	Loan and trade receivables	Available- for-sale financial assets	Total fair value
Inflation-indexed bonds	—	1,417	—	—	—	1,417
Treasury bonds	—	168	—	—	—	168
Zero-coupon bonds, commercial paper and deposits	—	—	800	—	—	800
Trade and other current receivables	—	—	—	750	—	750
Set off, National Debt Office	—	—	—	1,200	—	1,200
Cash and cash equivalents	—	—	—	3,039	—	3,039
Total						7,374

	Financial assets measured at fair value in profit and loss
SEK million, 31 December 2012	Holdings for trading	Classified on the initial recognition date	Investments held to maturity	Loan and trade receivables	Available- for-sale financial assets	Total fair value
Inflation-indexed bonds	—	1,657	—	—	—	1,657
Treasury bonds	—	22	—	—	—	22
Zero-coupon bonds, commercial paper and deposits	—	—	2,180	—	—	2,180
Trade and other current receivables	—	—	—	608	—	608
Set off, National Debt Office	—	—	—	1,200	—	1,200
Cash and cash equivalents	—	—	—	1,692	—	1,692
Total						7,358

	2013				2012
Fair value hierarchy, SEK million	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Financial assets recognised at fair value
Inflation-indexed bonds	1,417	—	—	1,417	1,657	—	—	1,657
Treasury bonds	168	—	—	168	22	—	—	22
Financial assets recognised at accrued cost
Trade and other current receivables	—	750	—	750	—	608	—	608
Set off, National Debt Office	—	1200	—	1,200	—	1,200	—	1,200
Cash and cash equivalents	—	3,039	—	3,039	—	1,692	—	1,692

For financial investments in the categories investments held to maturity, loan receivables and trade receivables, as well as available-for-sale financial assets, the fair value is deemed to match the carrying amount. The calculation of fair value based on discounted future cash flows, where a discount rate reflecting the counterparty’s credit risk comprises the key input data, is not assessed as giving rise to any material difference compared with the carrying amount for financial assets included in level 2.

Svenska Spel measures its inflation-indexed bonds and treasury bonds at fair value in profit and loss. Inflation-indexed and treasury bonds are classified under value hierarchy 1 since they are measured at market prices.

The Group’s security holdings in inflation-indexed bonds and treasury bonds pertaining to investments for the Triss Månadsklöver lottery, amounted to SEK 1,585 million (1,678), of which SEK 1,489 million (1,592) comprises the non-current portion and SEK 96 million (86) the current portion. Investments and sales totalled an expense of SEK 25 million (expense: 30) and change in value was a negative amount of SEK 68 million (pos: 23).

Interest-rate risk, SEK million	Nominal value	Maturity date	Coupon rate, %

Swedish inflation-indexed treasury bonds
1575	3	2014-06-18	6.00
3001	62	2014-04-01	0.00
3105	190	2015-12-01	3.50
3107	315	2017-06-01	0.50
3102	165	2020-12-01	4.00
3108	268	2022-06-01	0.25
3104	144	2028-12-01	3.50
Total	1,148

Swedish treasury bonds
1041	11	2014-05-05	6.75
1049	12	2015-08-12	4.50
1050	13	2016-07-12	3.00
1051	19	2017-08-12	3.75
1052	24	2019-03-12	4.25
1047	24	2020-06-01	5.00
1054	24	2022-06-01	3.50
1057	22	2023-11-13	1.50
1056	7	2032-06-01	2.25
1053	1	2039-03-30	3.50
Total	155

	Nominal value	Maturity date	Effective interest rate, %
Investments in zero-coupon bonds, commercial paper and deposits
Zero-coupon bonds	44	2014-02-18	2.40
Commercial paper	100	2014-03-06	1.47
Commercial paper	100	2014-04-22	1.46
Zero-coupon bonds	57	2015-10-12	2.63
Zero-coupon bonds	200	2016-09-19	Stibor + 0.50
Zero-coupon bonds	200	2016-09-19	Stibor + 0.50
Zero-coupon bonds	100	2017-02-17	Stibor + 0.50
Total	801

Cash and cash equivalents	3,039		1.50

Financial liabilities, Group
	Financial liabilities measured at fair value in profit and loss
SEK million, 31 December 2013	Holdings for trading	Classified on the initial recognition date	Other financial liabilities	Total fair value
Unpaid winnings	—	1,472	397	1,869
of which Triss Månadsklöver	—	1,472	—	1,472
Trade payables and other current liabilities	—	—	474	474
Settlement funds	—	—	198	198
Funded winnings	—	—	442	442
Other non-current liabilities	—	—	15	15
Total				3,000

	Financial liabilities measured at fair value in profit and loss
SEK million, 31 December 2012	Holdings for trading	Classified on the initial recognition date	Other financial liabilities	Total fair value
Unpaid winnings	—	1,572	359	1,931
of which Triss Månadsklöver	—	1,572	—	1,572
Trade payables and other current liabilities	—	—	504	504
Settlement funds	—	—	243	243
Funded winnings	—	—	441	441
Other non-current liabilities	—	—	32	32
Total				3,151

	2013				2012
Fair value hierarchy, SEK million	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Financial liabilities recognised at fair value
Unpaid winnings, Triss Månadsklöver	—	1,472	—	1,472	—	1,572	—	1,572
Financial liabilities recognised at accrued cost
Trade payables and other current liabilities	—	474	—	474	—	504	—	504
Unpaid winnings	—	397	—	397	—	359	—	359
Settlement funds	—	198	—	198	—	243	—	243
Funded winnings	—	442	—	442	—	441	—	441
Other non-current liabilities	—	15	—	15	—	32	—	32

For financial investments in the other financial liabilities category, the fair value is deemed to match the carrying amount. The calculation of fair value based on discounted future cash flows, where a discount rate reflecting the counterparty’s credit risk comprises the key input data, is not assessed as giving rise to any material difference compared with the carrying amount for financial liabilities included in level 2.

The Group’s unpaid winnings pertaining to Triss Månadsklöver are valued under value hierarchy 2 since they are measured using observable market data. Unpaid winnings pertain to liabilities to winners in the Triss Månadsklöver lottery for future payments that Svenska Spel is obliged to perform. Cash flow is discounted with a yield curve that is calculated based on existing liquid, market-valued nominal Swedish treasury bonds.

Where Svenska Spel has guaranteed winners in the Triss Månadsklöver lottery inflation-indexed payments, the future cash flow is indexed up with the actual consumer price index (CPI) and the discount curve used is an inflation-indexed curve calculated based on existing liquid, market-valued inflation-indexed Swedish treasury bonds.

Interest-rate risk, SEK million	Nominal value, SEK million	Present value weighted real discount rate, %
Unpaid winnings, Triss Månadsklöver, debt portfolio1
Within 1 year	149	0.060
Within 1–5 years	533	0.080
More than 5 years	689	0.380
Unpaid winnings, Triss Månadsklöver, debt portfolio2
Within 1 year	17	0.069
Within 1–5 years	67	0.451
More than 5 years	97	1.252
Total	1,552