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. 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. 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. 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. 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. Independence Key Governance Principles CAPSTONE INFRASTRUCTURE CORPORATION 8