Our Values Integrity Strive for Profi  tability In all we do, we act honestly, ethically and fairly, abiding by both the  spirit and letter of our commitments and by our Code of Conduct and  Ethics. We are accountable for our decisions and seek to communicate  with transparency. We are committed to managing and growing our businesses profi tably,  which supports an attractive total return for our investors. Our Strategy Growing value through acquisitions that increase our scale,  diversify our portfolio and expand future opportunities Pursuing organic growth initiatives Increasing our power development footprint Capstone’s mission is to provide investors with an attractive  total return from responsibly managed long-term investments  in core infrastructure in Canada and internationally. Our strategy  to accomplish this mission includes:  Our strategy is to develop, acquire and manage a portfolio of  high quality power, utilities and transportation infrastructure  businesses and public-private partnerships (P3s). Geographically,  we are focusing our business development efforts primarily on  North America, the United Kingdom, and Western and Northern  Europe, with Australia and New Zealand remaining markets  of interest. All are member countries of the Organization for  Economic Cooperation and Development where there is relative  political, legal, regulatory and economic stability and where we  can effectively manage risks.  When pursuing new investment opportunities, we are mindful  of the quality of future cash flow streams and risks. We carefully screen each investment opportunity to ensure long-term accretion  to cash flow and a strong strategic fit. Our goal is to realize a  total return in the range of 10% on the investments we make.  We seek to invest in: ▶ A combination of lower risk opportunities where cash fl ow is  contractually defined such as operating power facilities or P3s; ▶ Utility-like opportunities that offer the potential for  predictable cash flow and steady growth; and ▶ Higher return investments such as our new power  development projects or user-pay forms of infrastructure  such as toll roads.  We plan to remain active on the growth front in 2014, with a  particular focus on the utilities and P3s segments. And while  we focus on wholly-owned businesses, we remain open to  collaborating or co-investing with like-minded partners,  an approach that has been successful for us at Bristol Water  and Värmevärden. Bristol Water is a regulated business with a secure competitive  position in a stable country and an attractive growth profi le  that we expect to be a significant driver of value for Capstone’s  shareholders in the years ahead. In the current regulatory  period, which runs from 2010 to 2015, Bristol Water’s real  regulated rate base will grow by approximately 26% compared  with an industry average of approximately 8%. We currently  anticipate similar growth in the next regulatory period, which  spans from April 2015 to March 2020, subject to regulatory  approval of the draft business plan Bristol Water submitted to the Water Services Regulation Authority (Ofwat) in December 2013.  At Värmevärden, we are exploring the potential for the business  to complete tack-on acquisitions and to increase its footprint in  the fragmented Swedish district heating market.  Our power development arm, Capstone Power Development, is focused on developing, acquiring and re-powering clean electricity  generation projects in North America, targeting markets where  there is a defined need for new capacity and energy supply.  These early or later-stage opportunities offer the prospect of  substantially higher investment returns than operating assets  while also broadening our pipeline and creating a quality  destination for capital. We are also focused on advancing our new pipeline of wind projects on time and budget. These projects,  currently slated to enter commercial operations between  2014 and 2016, will extend our weighted average PPA term  remaining and strengthen our long-term cash fl ow profi le.  6 CAPSTONE INFRASTRUCTURE CORPORATION