CMD due in December The new CEO has as a priority the creation of a joint strategy for Fortum and Uniper, the latter now 75% owned by the Finnish utility. This is due to be finalised by year-end and presented in a CMD in December. We understand the CMD will focus on decarbonisation and portfolio refocusing within the context of maintaining a BBB credit rating. A squeeze out or domination agreement of Uniper was ruled out until the end of 2021. But is the gap to peers too big? RWE''s surprise capital increase, ENGIE''s strategic repositioning announcement at its H1 and SSE''s emphasis on exiting non-core assets and even selling minority stakes in core network assets in order to fund renewables show that the rest of the sector (including even companies that could have been considered laggards a while back), has changed gears relative to Fortum when it comes to energy transition. Fortum has a strong carbon-free footprint but its additive contribution towards net zero is rather limited compared to peers. With management ruling out a capital increase and with the dividend policy unlikely to change, we are concerned that the CMD might be the last chance and could potentially prove a missed chance, to step up green investments and catch up with the sector. H1 ''20 performance lacklustre Q2 results disappointed especially on the back of a weak Russian performance. With FX a substantial headwind in addition to the pandemic and the expiry of the attractive CSA payments coming nearer, we continue to view that division as overvalued within the current share price. Re-iterate Underperform Our price target remains unchanged at EUR15.7/share. We tweaked our estimates and are below consensus EPS for 2021e onwards on the back of a) lower achieved power prices in the Nordics, consistent with current hedging and a small premium to the forward curve, b) lower contribution from Russia, in part due to FX and c) lower contribution from Uniper.