Note 11 - Financial instruments

Financial assets, Group    
  Financial assets measured at fair value in profit and loss      
SEK million, 31 Dec. 2015 Holdings for trading Classified on the initial recognition date Investments held to maturity Loan and trade receivables Total fair value
Inflation-indexed bonds — 1,208 — — 1,208
Treasury bonds — 399 — — 399
Zero-coupon bonds, commercial paper and deposits — — 754 — 754
Trade and other current receivables — — — 656 656
Set off, National Debt Office — — — 1,150 1,150
Cash and cash equivalents — — — 3,042 3,042
Total         7,209
           
  Financial assets measured at fair value in profit and loss      
SEK million, 31 Dec. 2014 Holdings for trading Classified on the initial recognition date Investments held to maturity Loan and trade receivables Total fair value
Inflation-indexed bonds — 1,338 — — 1,338
Treasury bonds — 294 — — 294
Zero-coupon bonds, commercial paper and deposits — — 558 — 558
Trade and other current receivables — — — 611 611
Set off, National Debt Office — — — 1,150 1,150
Cash and cash equivalents — — — 3,116 3,116
Total         7,068
           
  2015   2014
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 1,208 — — 1,208   1,338 — — 1,338
Treasury bonds 399 — — 399   294 — — 294
Financial assets recognised at accrued cost                  
Trade and other current receivables — 656 — 656   — 611 — 611
Set off, National Debt Office — 1,150 — 1,150   — 1,150 — 1,150
Cash and cash equivalents — 3,042 — 3,042   — 3,116 — 3,116
                   

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 1,607 million (1,632), of which SEK 1,509 million (1,433) comprises the non-current portion and SEK 97 million (200) the current portion. Investments and sales totalled an expense of SEK 47 million (expense: 55) and the change in value was SEK 21 million (103).

Interest-rate risk, SEK million Nominal value Maturity date Coupon rate, %
       
Swedish inflation-indexed treasury bonds      
1578 60 21 Sept. 2016 6.00
3107 243 1 June 2017 0.50
3110 186 1 June 2019 0.13
3102 99 1 Dec. 2020 4.00
3108 163 1 June 2022 0.25
3109 152 1 June 2025 1.00
3104 78 1 Dec. 2028 3.50
3111 40 1 June 2032 0.13
Total 1,021    
       
Swedish treasury bonds      
1050 30 12 July 2016 3.00
1051 40 12 Aug. 2017 3.75
1052 50 12 Mar. 2019 4.25
1047 51 1 Dec. 2020 5.00
1054 52 1 June 2022 3.50
1057 35 13 Nov. 2023 1.50
1058 23 12 May 2025 2.50
1059 36 1 June 2032 1.00
1056 25 1 June 2032 2.25
1053 11 30 Mar. 2039 3.50
Total 353    
       
  Nominal value Maturity date Effective interest rate, %
Investments in zero-coupon bonds, commercial paper and deposits      
Zero-coupon bonds 100 17 Feb. 2017 Stibor 3M + 0.50
Commercial paper 250 14 Dec 2017 0.26
Zero-coupon bonds 200 15 Oct. 2018 Stibor 3M + 0.50
Zero-coupon bonds 200 19 Nov. 2018 Stibor 3M + 0.75
Total 750    
       
Cash and cash equivalents 3,042   0.19
       
Financial liabilities, Group      
  Financial liabilities measured at fair value in profit and loss    
SEK million, 31 Dec. 2015 Holdings for trading Classified on the initial recognition date Other financial liabilities Total fair value
Unpaid winnings — 1,478 509 1,987
   of which Triss Månadsklöver — 1,478 — 1,478
Trade payables and other current liabilities — — 458 458
Settlement fund — — 240 240
Funded winnings — — 576 576
Other non-current liabilities — — 11 11
Total       3,272
         
  Financial liabilities measured at fair value in profit and loss    
SEK million, 31 Dec. 2014 Holdings for trading Classified on the initial recognition date Other financial liabilities Total fair value
Unpaid winnings — 1,505 462 1,967
   of which Triss Månadsklöver — 1,505 — 1,505
Trade payables and other current liabilities — — 456 456
Settlement fund — — 227 227
Funded winnings — — 611 611
Other non-current liabilities — — 13 13
Total       3,274
         
  2015   2014
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  — 1,478 — 1,478   — 1,505 — 1,505
Financial liabilities recognised at accrued cost                  
Trade payables and other current liabilities — 458 — 458   — 456 — 456
Unpaid winnings — 509 — 509   — 462 — 462
Settlement fund — 240 — 240   — 227 — 227
Funded winnings — 576 — 576   — 611 — 611
Other non-current liabilities   11   11   — 13 — 13
                   

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 pertains to liabilities to winners in the Triss Månadsklöver game 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 by 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 portfolio 1    
Within 1 year 136 –0.070
Within 1–5 years 442 –0.450
More than 5 years 483 –0.240
Unpaid winnings, Triss Månadsklöver, debt portfolio 2    
Within 1 year 38 –0.043
Within 1–5 years 151 –0.062
More than 5 years 220 0.500
Total 1,469