## MESSAGE FROM THE CHAIRMAN 

Capstone’s vision is to be a Canadian leader in owning and operating diversified infrastructure businesses that benefit the communities we serve, the people we employ and our investors. 

## Dear Fellow Shareholders: 

This year, we mark the occasion of Capstone Infrastructure Corporation’s 10-year anniversary. 

From our initial public offering in 2004 with about $230 million in total assets and one power facility, Capstone today has nearly $2 billion in total assets and a diversified portfolio including power infrastructure and utilities businesses in Canada and internationally. 

We now have approximately 100 employees across Canada with about another 600 at our businesses in the United Kingdom and Sweden, and relationships and partnerships that span the globe, including corporations, infrastructure developers and fund managers, investors, financiers, municipalities and First Nations communities. 

We have also strengthened our company for shareholders by investing in long-life utilities businesses — Bristol Water and Värmevärden — that feature perpetual cash flow and an attractive organic growth profile. Indeed, Bristol Water has been in operation for 168 years, reflecting the essential nature and longevity of water utilities. 

We have broadened our power footprint beyond the Cardinal gas cogeneration plant to include wind, hydro, biomass and solar power generation. In addition, we now have a development arm engaged in building wind power development projects and sourcing growth opportunities in the power arena in Canada and the United States. This new capability puts us in an excellent position to build and develop a pipeline of accretive power projects in the years to come. 

## Key Governance Principles 

Building today for tomorrow — the underlying theme of this report — is the foundation of our approach to managing and governing Capstone. It permeates the decisions we make across our businesses. It’s why Bristol Water is executing the largest capital expenditure program in its history, to improve its network of pipes and expand its operations while driving signifi cant growth in rate base, and accordingly, value for shareholders. It’s why we carefully plan for and invest in maintenance at our power facilities. It informs our company’s strategic direction and investment focus, including the quality and risk profi le of businesses we seek to acquire in the utilities, power, transportation and public-private partnership infrastructure segments. And it speaks to the community impact of investing in infrastructure: economic growth and a better quality of life. 

With the solid foundation laid over the past 10 years, Capstone’s vision is to be a Canadian leader in owning and operating diversifi ed infrastructure businesses that benefit the communities we serve, the people we employ, and our investors. 

The Board of Directors supports this vision in a number of ways, including working with management to establish Capstone’s strategy and objectives, approving significant decisions that aff ect Capstone and its results, monitoring the company’s fi nancial performance and risk management practices, setting the dividend policy and overseeing Capstone’s stakeholder relationships and reporting obligations. 

## Independence 

At all times, a majority of directors must be independent directors (as defined under applicable securities regulations). A director is independent when he or she does not have a direct or indirect material relationship with Capstone or its subsidiaries. 

