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CPST: Global Market Strategy and Geographical Diversification

IN FOCUS: CAPSTONE TURBINE’S GLOBAL MARKET STRATEGY AND GEOGRAPHICAL DIVERSIFICATION

The alphaDIRECT Insight

We believe that the international markets will continue to present significant growth opportunities with increasing demand for cleaner energy and the distributed power generation megatrend. We expect emerging markets such as Africa, Asia, and the Middle East will be important long-term growth drivers for Capstone and the broader Energy Tech industry. We believe Capstone’s longterm growth strategy is well-placed and provides diversification as well as tapping key areas of growth. Importantly, Capstone’s global initiative includes the aftermarket service component, which we view as a critical driver to reach long-term profitability goals. Although emerging markets can be difficult to navigate, we believe the company is developing a solid local distribution network as well managing risk, including receivables. In this piece, we engage in a number of key parts of the company’s strategy and opportunity.

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