MESSAGE TO SHAREHOLDERS Dear Fellow Shareholders: We maximized performance by enhancing the cash fl ow  potential of our businesses Our Priorities We executed our growth strategy by acquiring  Renewable Energy Developers Inc. (ReD) Grow Engage 4 CAPSTONE INFRASTRUCTURE CORPORATION Create shareholder value by adding infrastructure businesses that increase  scale, expand future opportunities and potentially off er synergies. Provide a work environment that attracts and retains skilled employees. Our Corporate Objectives Our portfolio today features a lower risk profile and higher growth  potential than it did a few years ago. We expect our portfolio’s value  to increase as our new wind power projects move into commercial  operations and as Bristol Water’s regulated capital value grows.  In 2013, Capstone delivered strong fi nancial performance.  We also advanced our strategy to transform our business,  lower our risk profile and build for tomorrow.  We achieved Adjusted EBITDA of $128.4 million, at the higher  end of our range of expectations, reflecting strong operations  across our businesses as well as three months of contribution  from the operating wind power facilities we added to our  portfolio in October 2013.  We also realized two of the three priorities we set for ourselves  in 2013 while making significant progress on the third. projects reach commercial operations, delivering accretive growth  and value for shareholders. Two of our new development  projects started construction in November 2013 with a third  expected to get underway in 2014. The acquisition of ReD, a proven wind power developer, expands  our complement of operating wind power facilities to a total of  194 net megawatts in Ontario and Nova Scotia, and establishes a new foothold in the wind power development arena. With a  contracted development pipeline totalling an expected net  79 megawatts, we are now cultivating a higher return niche  within our portfolio that will begin to contribute new cash fl ow  to Capstone starting in 2014 and beyond as our development  We constantly challenge ourselves to find new ways to enhance  the effi ciency and quality of our operations. These initiatives  include predictive and preventive maintenance, detailed planning  for capital expenditures that boost value, and the deployment of  innovative tools to generate additional cash flow from our  businesses. In 2013, these tools included the sale of renewable  energy credits by Whitecourt, which contributed approximately  $1 million in revenue, and the installation of WindBOOST at  Erie Shores, a software tool that we expect to increase the  facility’s annual production by about 1% to 3%. At Bristol Water,  we continued to work closely with management to execute the  company’s approximately C$520 million capital expenditure  program for the current regulatory period that began in April 2010  and concludes in March 2015. This program, which is aimed at  improving and expanding the company’s network of reservoirs,  treatment facilities, water mains and pipes, will drive growth in  Bristol Water’s regulated capital value, and accordingly, value for  Capstone and our shareholders.