Genome Engineering

CORPORATE PRESENTATION 2007

 SUMMARY

4 Key events in 2007

6 Strengths and potential

8 Statement from the CEO

14 History

16 Activities and markets

18 Sources of revenue

Shares and financial communication

20 Scientific foundations of the company

21 Product portfolio

22 Intellectual property

23 Strategy and business model

24 Corporate governance

26 Main financial items

 KEY EVENTS IN 2007

Corporate events
• A successful IPO on Alternext at NYSE Euronext (February 7th 2007) with the issue of new shares,
raising over €24 million to increase the company’s production, sales & marketing and R&D capacities.
• Most of Cellectis’ longstanding shareholders and employees subscribed to the share offer.

Reinforced leadership
• Recruitment of 8 new R&D and Business Development staff.
• An increase in staff numbers, from 40 to 48 (including 17 PhDs).
• Reinforcement of the Scientific Advisory Board and the Board of Directors, with the nominations
of Professor Alain Fischer (Necker Children’s Hospital, Paris) as a new member of the Scientific Advisory
Board and of Mr. Alain Godard (a former President of the Executive Board at Aventis CropSciences)
and Professor Richard Mulligan (Professor of Genetics at Harvard Medical School) as independent
Members of the Board.

Commercial activity
• Signature in April of a commercial license agreement with Celonic, a German custom recombinant
protein biomanufacturing company. This deal demonstrates the successful validation of Cellectis
technology in an industrially produced cell line.
• Delivery in May of first meganuclease with custom-modified specificity to Bayer CropSciences, as part
of a collaboration initiated in 2006. This technical milestone demonstrates Cellectis’ ability to deliver
a modified-specificity meganuclease within just 9 months of the discovery of a genomic target.
• Signature in May of a research license agreement with GlaxoSmithKline in the field of homologous
recombination. This type of agreement is likely to be extended to other “big pharma” companies
in the months and years to come.
• Signature in October of a contract with Laboratoires Servier in the cell engineering field.
• Signature in October of a license agreement with the Japanese company TransGenic on the
use of homologous recombination technology.

Intellectual property (148 patents and patent applications):

Cellectis traite de sujets scientifiques Portfolio extension:
complexes et apporte des solutions • 8 new granted patents, including 3 in Europe and 5 in the United States (an increase from 27 to
simples et innovantes. 35 patents delivered in a year).
• 44 new patent applications (an increase from 69 to 113 patent applications in a year).

R&D
• Positive results with cells from patients (xeroderma pigmentosum group C) – September
• Delivery of 2 Meganuclease Recombination Systems (MRSs) for p53 to the European NetSensor
Consortium – July.
• Delivery of a meganuclease targeting the RAG1 gene (responsible for a severe immunodeficiency)
to Professor Luigi Notarangelo’s research group at Boston Children’s Hospital – November.
• Delivery of a meganuclease targeting IL2RG to Professor Alain Fischer at Necker Children’s Hospital,
Paris – August.
• Collaboration with the CNIO and CRG research institutes (Spain) – one paper submitted
and another in press.
• Collaboration with Necker Children’s Hospital (Paris) on a mouse model – paper submitted
• Scientific publications (4):
- Nucleic Acid Research (2007;35(10):3262-71)
- Current Gene Therapy (2007 Feb;7(1):49-66)
- Journal of Molecular Biology (2007 Aug 3;371(1):49-65)
Journal of Biological Chemistry (2008 Feb 15;283(7):4364-74)

l Cellectis l Corporate Presentation 2007 l Key events in 2007 l 4

 AMBITION
IT’S IN OUR DNA
To become the world leader in DNA
programming or genome engineering

l Cellectis l Corporate Presentation 2007 l Présentation de Cellectis l 5


3 different meganucleases
fixed on their targets.
Meganucleases are naturally
occurring DNA cutters that are
able to recognize and cut a large specific
sequence of DNA in a genome
l Cellectis l Corporate Presentation 2007
CELLECTIS’ STRENGTHS
• A dominant international position in rational genome engineering, underpinned by cutting-edge
technology validated through a large number of scientific publications (including 4 in 2007),
together with an optimal intellectual property strategy.
• A unique and aggressive intellectual property policy (both protecting and extending the existing
portfolio), guaranteeing Cellectis the freedom to exploit its technology and strengthening its
technological lead and know-how. As of December 31st 2007, the company held rights to 30 patent
families, corresponding to 35 granted patents and 113 pending applications in France and elsewhere
throughout the world (see the table in the “Intellectual Property” section page 19).
• Validation of Cellectis technology by partners worldwide (GlaxoSmithKline (GSK), Servier, Bayer
CropSciences, Celonic, Transgenic, etc.), raising the profile of Cellectis and increasing its credibility in
three of its target markets: healthcare, agribiotech, biomanufacturing & research.
• Collaborations with internationally renowned academic institutions (INSERM, Institut Gustave Roussy,
CNRS, Pasteur Institute, Boston Children’s Hospital, Necker Children’s Hospital, etc.) in the research
and reagents market.
• A diversified portfolio with 18 products currently in development with balanced prospects for short-,
mid- and long-term revenues.
• Prudent management of the company’s ample assets.
• An experienced management team with complementary skills, supported by a team of motivated
individuals.
POTENTIAL
One of Cellectis’ main strengths is its ability to increase its annual MRS production capacity
substantially thereby achieving steady revenue growth:
• 8 MRSs produced in 2006
• 10 MRSs produced in 2007
• A capacity of 20 in 2008
• A capacity of more than 20 by 2010
• A target of 40 MRSs in active use by partners and customers in 2010
In 2007, Cellectis achieved its annual production objective of 10 new meganucleases.
More than 18 applications have been developed since the company’s inception. The first Cellectis
meganucleases (MRSs) were produced in Q4 2005, leading to the initiation of partnerships focusing
primarily on the existing client portfolio. The first deal led to the delivery of a first MRS to a major
agrochemicals firm (Bayer CropSciences) and the delivery of three biotherapeutic MRSs – one to
Professor Alain Fisher’s INSERM research group at Necker Children’s Hospital (France), the second
to Professor Luigi Notarangelo’s group at Boston Children’s Hospital and the third to Professor Sarasin’s
CNRS unit at the Institut Gustave Roussy (France). Cellectis estimates that by 2010, around 40 MRSs
will be actively used by its strategic customers and partners.
Cellectis has signed over 48 accords with pharmaceutical companies (GlaxoSmithKline, AstraZeneca,
Merck & Co., Wyeth, Shire, Servier, etc.), agrochemical multinationals (Bayer CropSciences,
DuPont, Pioneer HiBred, BASF, Limagrain, etc.) and biotech firms (Genentech, Regeneron,
Lexicon Genetics, Celonic, Transgenic Inc., etc.). Cellectis is focusing its R&D efforts on high-potential
markets such as monogenic diseases, DNA virus and retrovirus infections (herpes, hepatitis B and HIV),
allogenic transplantation and cancer.
l Cellectis‘ Strengths l 6
 DIVERSITY
IT’S IN OUR DNA
F
Four high-potential
hi h t ti l ttargett markets
k t
for meganucleases: healthcare, agronomy,
research and biomanufacturing

l Cellectis Genome Engineering l Annual Report 2006 l Présentation de Cellectis l 7


André Choulika PhD.
Chief Executive Officer
l Cellectis l Corporate Presentation 2007
STATEMENT FROM THE CEO
Researchers, life science companies and physicians now have access to a huge amount of genomic
information. Significant human and material resources have been devoted to understanding how genes
and genomes work, with a view to improving human health, quality of life and environment. However,
adequate therapeutic solutions are still lacking for many diseases and the world is still looking for new,
environmentally friendly sources of energy and renewable materials. An understanding of the way in
which genomes operate and of way of repairing and modifying them with a high degree of precision
will enable us to address many of these needs. Cellectis’ technology makes use of scientific knowledge
generated over more than 20 years at the Pasteur Institute. It lies at the interface between three
now mature disciplines: genetic engineering (recombinant DNA), structural biology and robotics.
The products that Cellectis designs and produces herald a new revolution in biotechnology – rational
genome reprogramming and therapeutically focused genome surgery.
2007 has been a year of change for Cellectis, with the transition from privately held to listed company
status and the achievement of a number of significant technological milestones.
• On February 7th 2007, Cellectis made a successful IPO on Alternext, a NYSE Euronext market.
This operation enabled us to increase our gross share capital to €24.4 million, thereby increasing
our ability to produce novel meganucleases, to amplify our R&D efforts and to strengthen our
commercial activity.
• We have obtained the first evidence of gene repair (in the human XPC gene) in a human cell line.
Mutations in the XPC gene cause a very severe skin disease in humans, the victims of which are often
referred to as “moon children”. This work (in collaboration with the Institut Gustave Roussy) showed
that a meganuclease programmed by Cellectis to target the defective XPC gene can induce gene repair
in a skin cell line in culture.
• We have reached a significant milestone in our research collaboration with Bayer Biosciences,
with the on-schedule delivery of a meganuclease with modified specificity for use in a plant species.
This achievement opens us new opportunities for broadening our collaboration and new horizons
in the agricultural biotech sector.
Building and improving our meganuclease production platform
Since the creation Cellectis in 2000, we have concentrated our efforts on the discovery
and implementation of a technology platform for the design and selection of new molecules
inducing the targeted recombination of DNA in living cells. To this end, we have made use of and
improved technologies discovered and patented by researchers at the Pasteur Institute. By investing
significant human and material resources in these technologies, we have improved our understanding
of how meganucleases work and have broadened their application. By the end of 2007, our production
capacity for meganucleases with a custom DNA target had doubled. In parallel, we have improved
our production process, leading to significant productivity gains. The time-line for the production
of custom meganucleases remains the same (9 months), but we have obtained spectacular results
in terms of improved product specificity and efficacy. The molecules that we are now producing open
the way to applications in the treatment of patients by high-precision genome surgery.
Cellectis is a world leader in meganuclease R&D and the use these tools in genome reprogramming,
as demonstrated by the high quality and frequency of our scientific publications and the impressive
number of patent applications filed over the last year. However, the impact of a technology can also be
measured by the spread and success of its use within the scientific community. More than 60 scientific
l Statement from the CEO l 8
 articles citing the use of meganucleases for the induction of DNA recombination were published in 2006,
and this figure rose to more than 100 in 2007, with a diverse range of organisms targeted: tomato, frog,
mosquito (malaria vector), fungi, mycobacteria and human cell lines. The success of a technology as a
benchmark in genome reprogramming depends not only on its designers, but also on its users.

Building strong industrial collaborations

In recent years, the demand for rational genome engineering technologies has been increasing,
as demonstrated by strong industrial interest in the Cellectis approach. Since the creation of the
company, we have signed 48 licensing and collaboration agreements with companies from the biotech,
pharmaceutical and agrochemistry sectors. These firms have used or are using our technologies
to generate innovative products based on rational genome modification. This year, we engaged
in 5 new collaborations with Celonic (Germany), Glaxo SmithKline (the USA and the UK), Bayer
Biosciences (Germany and France), Servier (France) and TransGenic (Japan). These agreements reflect
the importance of our technology worldwide and the opportunities that it offers for value creation.

In some cases, these agreements correspond to technology licenses for use in the validation of genomic
targets, with a view to understanding the role of certain genes and developing novel therapeutic
molecules. In other cases, certain partners use our technologies to manufacture industrial and commercial
quantities of proteins and to create new protein drugs. Finally, in some collaborations, our technologies
are also used to improve species in a controlled, clean manner by avoiding the need for random gene
modification and the transfer of foreign DNA. Cellectis is not a service company and all our partners
work with us in collaborative alliances, rather than short-term contracts. In 2007, Cellectis engaged in
no new industrial alliance concerning the production of meganucleases for therapeutic use. This
promising technology remains prospective and is being developed through a number of academic
and clinical collaborations.

Genome surgery with meganucleases – a revolution in tomorrow’s medicine

Meganucleases for therapeutic use constitute a major strategic development axis for Cellectis.
These high-precision “DNA scissors” are programmed to cut only at a specific target site. In theory,
if a cell does not contain the meganuclease’s target sequence (even among the 3 billion pairs of G, A, T,
and C bases forming the DNA double helix in humans), the meganuclease will remain inactive.
By contrast, if the target is present, the meganuclease will cut the sequence with a high degree of
precision. Today, Cellectis is developing meganucleases for four different types of therapeutic application:
(i) the repair of mutations involved in genetic diseases, (ii) destruction of the DNA of certain viruses
in infected cells, (iii) the inactivation of genes responsible for graft rejection in cells or organs before
transplantation and (iv) the weakening of cancer cells or the induction of their death through effects
on certain genes involved in carcinogenesis.

We have published several scientific articles demonstrating our ability to produce therapeutic
meganucleases and setting out certain principles of genome surgery in international, peer-reviewed
journals, such as Nucleic Acid Research, Current Gene Therapy and the Journal of Molecular Biology.
We have have delivered more than six different meganucleases in research collaborations targeting
genes involved in cancer, severe combined immunodeficiency syndrome (SCID or “bubble boy” disease),
xeroderma pigmentosum (XP, the disease suffered by moon children) sickle-cell anemia and for use
as R&D tools.

For the first time, and as part of Cellectis’ collaboration with the CNRS-FRE2939 research unit directec by
Dr Alain Sarasin at the Institut Gustave Roussy, a mutation in a cell line isolated from an XP patient has

l Cellectis l Présentation Corporate 2007 l Lettre du Directeur Général l 9

 been corrected by meganuclease-based genome surgery. Meganuclease-induced gene correction now
appears to be a viable alternative to standard gene therapy approaches, which are often based on gene
transfer with a viral vector. These data are still very preliminary and replication and more detailed study
are required. Nonetheless, this work constitutes a first step towards the use of meganuclease-mediated
gene targeting in the treatment of inherited monogenic diseases.

Implementing a balanced business model with an ambitious outlook

Cellectis’ business model stands out in terms of its long-term nature. Modern biotechnology results from
man’s ability to modify the genetic program and the trend within the industry is to move toward ever
greater control over genome engineering, in ever-broadening fields of application. Cellectis occupies a
key position in this trend and has considerable potential for value creation. It generates short-term
revenue from the granting of patent licenses to partners and collaborators working on the development
of research and production tools and in agribiotech. The revenue raised from these licensing and
collaboration activities generates turnover and makes it possible to preserve the inherent long-term value
of our technology. Our customers and collaborative partners are increasing in number. Furthermore,
the spectrum of certain collaborations has broadened. In 2007, we were involved in collaborations
in the fields of biomanufacturing, research and agribiotech. Over the year, we initiated the development
of a first kit for use in biological research, and other products in the same range are also in preparation.
A significant proportion of our resources have been invested in the development of products for
potential use in treatment, and this will continue to be the case in the coming years. We intend to
develop and validate these products, right up to use in patients in collaboration with the pharmaceutical
industry. This portfolio of therapeutic products will constitute a major asset for Cellectis in the future.

On February 7th 2007, our IPO raised €24.4 million in equity. At the end of the 2007 fiscal year, our cash
reserves stood at €25 million. The IPO stimulated considerable enthusiasm among investors, and most of
our employees also subscribed to the equity issue, bearing witness to their long-term confidence in the
company’s prospects. Since its creation, Cellectis has prudently managed its cash base, keeping its burn
rate (a feature of biotech companies) under tight control. We expect to have to increase our short-term
capital consumption to achieve our stated goals, but we intend to maintain cash reserves at sufficiently
high levels to construct highly valuable assets and to meet our short- and mid-term objectives.

As a trailblazer with breakthrough technology, Cellectis is extremely active in the intellectual property
arena. As of late 2006, our portfolio featured 96 patents and patent applications, either fully owned
or exclusively licensed from the Pasteur Institute. In the space of a year, we have succeeded in gaining
8 granted patents and have filed 44 new applications – taking our IP portfolio to 148 patents and
patent applications. This intense inventive activity by our researchers is the product of their creativity
and rigorous, technologically advanced science. We are also defending our freedom to exploit our
discoveries by protecting our portfolio against potential opponents and successfully contesting patents
held by our competitors that we consider to be unjustified.

In 2007, the governance of Cellectis progressed with the arrival of several new expert Supervisory
Board and Scientific Advisory Board members. In July, Professor Richard C. Mulligan – an internationally
recognized pioneer in the development of new gene transfer technologies with longstanding experience
in biotech – joined the Board to strength our strategy in terms of therapeutic orientation. In September
following the resignation of Edmond de Rothschild Investment Partners from our Board, Alain Godard
(a former President of the Executive Board at Aventis) joined us to strengthen our strategy for the
agribiotech sector. We would like to thank Gilles Nobécourt from Edmond de Rothschild Investment
Partners for his membership of the Board membership and hard work over the last five years.

l Cellectis l Corporate Presentation 2007 l Statement from the CEO l 10

 VISION
IT’S IN OUR DNA
A naturally occurring “cut & paste” system
for DNA, discovered by researchers at the
Pasteur Institute in the 1980s

l Cellectis Genome Engineering l Annual Report 2006 l Présentation de Cellectis l 11

 His professionalism, exceptional network of contacts and farsighted vision of the biotech industry have
been of great benefit to Cellectis. Finally, Professor Alain Fisher (with whom we have collaborated for a
number of years) joined our Scientific Advisory Board strengthening it by his scientific and medical skills
in the field of the inherited genetic diseases and gene therapy approaches.

At the origin of a paradigm change in the biotech industry

First and foremost, Cellectis is about the people who work for it. At the end of the 2007 fiscal year,
the company had 48 salaried employees, most of whom have been with the company for a long time
(including some who joined Cellectis in the year it was set up!). Thanks to their inventiveness, hard
work, strong team spirit and unflagging commitment to a shared project and a common vision, we have
succeeded in creating major technological breakthroughs in biotechnology. Following in the footsteps of
the Pasteur Institute researchers who discovered these technologies, we founded this company eight
years ago in the firm belief that meganucleases had therapeutic and commercial potential for genome
engineering. Many challenges lie ahead before this approach can be applied to patients suffering from
diseases for which no adequate treatment currently exists or new biological products generated by
rational genome engineering released onto the market. However, in 2007, we made a significant step
forward in the new approach to molecular medicine – genome surgery – opening the way to a huge
number of applications for the genetic programming of living organisms in a wide range of high-
potential markets.

Finally, we would like to thank our shareholders for their support and trust in Cellectis.

With my best wishes,

André Choulika
CEO

l Cellectis l Corporate Presentation 2007 l Statement from the CEO l 12

 INNOVATION
IT’S IN OUR DNA
Genome engineering: to cure genetic
disorders fight infections and improve
transplantation.

l Cellectis Genome Engineering l Annual Report 2006 l Présentation de Cellectis l 13


High tech laboratories
located in a biotech campus:
the Biocitech Park
l Cellectis l Corporate Presentation 2007
HISTORY
Cellectis’ innovative approach is based on a true technological breakthrough and opens up new
perspectives in high-precision genome engineering and modification of the DNA of living organisms.
The business idea behind Cellectis developed from the combination of two technologies developed
from research carried out at the Pasteur Institute in Paris: homologous recombination and intron
endonuclease. During his postdoctoral studies in Professor Richard Mulligan’s laboratory at Harvard
Medical School, André Choulika came up with a business idea based on the development and
exploitation of artificial systems for repairing or modifying DNA based on a combination of two
technologies: meganucleases (natural proteins that cut DNA at precisely defined sites in vivo) and
homologous recombination (the targeting of one genome sequence by another, absed on the presence
of similar sequences upstream and downstream from the target gene).
In 1999, André Choulika moved back to France and presented his project to the Director and
technology transfer staff of the Pasteur Institute, which held the key patents. After winning the 1999
National Business Plan Competition run by the French government, André Choulika teamed up with
another young researcher (David Sourdive) to found Cellectis as a Pasteur Institute spin-off.
Cellectis is a true biotech company with a very innovative technological approach and business model.
The company – which aims to become a world leader in DNA programming – designs, produces
and sells a new class of products (meganuclease recombination systems, MRSs) for high-precision
in vivo genome engineering.
Cellectis’ MRS (for the “copying and pasting” of DNA) represents a true technological breakthrough in
the world of biotech.
Most of the industrial biotech applications introduced since the 1970s (e.g. therapeutic
proteins and cell and gene therapy) have involved random gene insertion. Cellectis technology is more
accurate, efficient and powerful: it involves the design and development of a meganuclease specific for
a given gene, making it possible to modify the sequence of that gene in a precise manner, to modulate
its expression or to repair it in any living organism or cell.
Cellectis can modify genomes with meganucleases alone – destroying infectious DNA or inactivating
cancer genes. Cellectis also develops meganuclease recombination systems or MRSs, composed of two
elements: meganuclease “DNA scissors” and a DNA matrix, for the transmission of genetic information
to a chromosome in any living organism (humans, animals, plants, microorganisms). The MRS enters
the cell and targets the DNA of chromosomes, replacing all or part of a gene with another gene,
correcting defects in an accurate and controlled manner or simply inserting or destroying a DNA
sequence.
Cellectis’ specific know-how and the market launch of its new technology will open up new fields
of application for the scientific knowledge acquired over the last 30 years in biology, particularly
in genomics.
l Historicl 14
 THE FUTURE
IIT’S IN OUR DNA
A mature portfolio of wide
wide-ranging
ranging patents providing
opportunities for collaboration and revenue for today
and maintaining competitiveness for tomorrow

l Cellectis Genome Engineering l Annual Report 2006 l Présentation de Cellectis l 15

 ACTIVITIES & MARKETS

From its foundation until 2006, Cellectis sublicensed technology originally developed at the Pasteur
Institute, signing over 48 agreements with pharmaceutical companies (GlaxoSmithKline, AstraZeneca,
Merck & Co., Wyeth, Shire, Servier, etc.), agrochemical multinationals (Bayer CropSciences, DuPont
Pioneer Hi-Bred, BASF, Limagrain, etc.) and biotech firms (Genentech, Regeneron, Lexicon Genetics,
Celonic, Transgenic Inc., etc.). Over this same period, Cellectis developed its own technology (based on
the engineering of meganucleases to modify their specificity). It has been moving towards a direct MRS
sales model since 2006. The MRSs manufactured by Cellectis are currently sold (and will continue to be
sold) to industrial customers who make use of these tools in the company’s four main target markets:

Health • Healthcare/therapeutics – this is Cellectis’ broadest field of application, in which meganucleases

act on a defective gene, tackling the cause of the disease rather than simply treating its effects. This
approach can be used to treat diseases not treatable by standard approaches. Furthermore,
meganucleases can be used to induce a strand break in a target DNA sequence and to alter the
genetic information present at this site in a precise manner, thereby eliminating the defective genetic
element. Cellectis’ “surgical” approach – targeting the underlying genetic cause of disease – is a truly
revolutionary, innovative approach. The company is currently developing MRSs targeting severe
combined immunodeficiency (SCID). This work includes a collaborative project with Professor Alain
Fischer (Necker Children’s Hospital), underway since 2005, for the treatment of “bubble children”
(X-SCID). Finally, we are also developing a range of innovative products, such as antiviral drugs
Agribiotech against hepatitis B or products for use in cell and organ transplantation.

• Agribiotech – a market estimated at $8 billion in 2007 – meganucleases avoiding the need to insert
a foreign gene into plants and/or eliminating an allergenic component by gene deletion are of major
interest. As a result, Cellectis is opening up very significant opportunities in both the food sector and
the emerging bioenergy field.

• Biomanufacturing – a global market estimated at $1.7 billion in 2007 – the accuracy of targeting
and ease of use of Cellectis technology are major assets for industrial applications. This is a very
competitive market and some of the steps involved are costly. Cellectis MRSs will help to improve
these processes by improving performance, predictability and stability. Here, MRSs are integrated
Biomanufacturing into industrial processes (the IT model) and may even lead to improvements in the intrinsic quality
of the end product.

• Research tools – a market demanding constant innovation and setting the standards for tomorrow’s
industry. This market is modest in size (estimated at $8 billion in 2007), but its short-term profitability
is good and it also opens up possibilities for populizing MRS technology in academic and industrial
laboratories, thus laying the foundations for Cellectis technology to become the worldwide standard
for DNA programming.

Research

l Cellectis l Corporate Presentation 2007 l Activities & Markets l 16

 EXCELLENCE
IT’S IN OUR DNA
Investing in our product quality
and performance and reinforcing
our technological lead by accelerating
our collaborative research on diverse
types of application

l Cellectis Genome Engineering l Annual Report 2006 l Présentation de Cellectis l 17

 SOURCES OF REVENUE

Today, Cellectis sells its own products, which should generate most of its revenues in the mid-term.
The company has a portfolio of 18 products at various stages of development and
is focusing its R&D efforts on high-potential markets, such as new-generation antivirals drugs, genetic
diseases, cancer and products for allogeneic transplantation.

MRS revenues consist of fees for access to the technology (“upfront” payments), annual intellectual
property fees, payments associated with the achievement of technical/development milestones and
royalties on sales of finished products.

SHARES & FINANCIAL COMMUNICATION

One of the key events of 2007 was Cellectis’ successful IPO on the NYSE Euronext Alternext market.
Cellectis has already set up a financial PR program, based on the regular provision
of clear information via:

• Press releases in French and English.

• Individual and group meetings (financial/analyst seminars, road shows, business breakfasts, webcasts
and conference calls) in France and abroad with analysts, fund managers and individual shareholders
(notably during the Actionaria show in Paris) and journalists from the business and financial press.

• A web site in French and English, with in-depth corporate information and a dedicated Investor
Relations section.

• A corporate presentation in French and English.

Quality, traceability, and demand are

the foundation of Cellectis’ research

Capital structure in 2007

Odysee Venture 6%

Fondateurs, Personnel & Dirigeants 19% 8%

LCF Rothschild 6%

AGF Private Equity 12% Institut Pasteur 5,5%

Bankinvest 16,5%
Kaminvest 12%

Flottant 23%

l Cellectis l Corporate Presentation 2007 l Revenue Sources & Financial Communication l 18

 VALUES
IT’S IN OUR DNA
Cellectis aims to develop a new generation
of antiviral drugs that destroy the DNA of
certain viruses by highly specific cleavage

l Cellectis Genome Engineering l Annual Report 2006 l Présentation de Cellectis l 19


Excellence in team spirit and
support to the company project
are Cellectis’ strengths
l Cellectis l Corporate Presentation 2007
THE SCIENTIFIC FOUNDATIONS OF THE COMPANY
The business idea behind Cellectis arose from the following observation: the information encoded in the
genome of living organisms is only fully accessible and exploitable if genomic DNA can be rationally and
accurately reprogrammed. Cellectis designs artificial systems for inducing natural DNA repair and
“copying and pasting” fo any defined gene.
Cellectis is the first company in the world to commercially exploit a technology for high-precision,
in vivo DNA surgery in a broad range of genomes commercially. Thanks to Cellectis technology,
we can now correct a defective gene in situ without damaging the rest of the genome and without
adding imprecise and poorly tolerated foreign genes. DNA is the blueprint for the functions of all living
organisms. The first work on reprogramming living cells (in the 1970s) launched the biotech revolution.
However, the major applications of this early work are still based on the random genomic insertion
of DNA sequences in vivo. This is true for gene therapy and the production of therapeutic proteins
such as insulin (the first biotech drug, approved in 1982), growth hormone and erythropoietin
(EPO – the most commercially successful therapeutic protein worldwide, with sales of nearly $10 billion
in 2005 (source: Arthur D. Little)).
The random insertion of genetic material is currently the main barrier to the development of gene
therapy as it may have a certain number of detrimental consequences. The full sequence of the human
genome has been known since 2000. Following the achievement of this significant milestone in modern
science, the sequencing of an increasingly large range of genomes has provided researchers with a huge
volume of data on the genetic programs of many species and has contributed to our understanding
of many diseases. However, access to this information – particularly for its correction or exploitation –
remains very limited.
In 2000, the business idea behind Cellectis was based on the design and development of an artificial
system for repairing DNA or modifying the DNA composition by combining two fundamental
technologies developed at the Pasteur Institute: meganucleases (natural proteins that cut DNA precisely
at defined sites in vivo) and homologous recombination (the targeting of one genome sequence by
another through the presence of similar sequences upstream and downstream from the gene in question).
Individually, these two technologies have limited numbers of applications. On the one hand, the low
targeting efficiency of homologous recombination restricted its use to a small number of species (the
mouse, yeast, moulds) and to academic research. On the other, the small number of natural
meganucleases available could cut DNA at only a few DNA sequences so the chances of finding a useful
target were close to zero. This led to the development, by Cellectis, of the first ever technology for
industrial-scale, rational, in vivo genome engineering (the meganuclease recombination system, MRS),
making it possible to cut DNA at any desired, predefined site in a given genome.
Over the last 6 years, Cellectis has moved from product design to the sale of its products and is
developing its own proprietary technology platform.
Today, Cellectis is the world leader in rational genome engineering, with a growing, diversified product
portfolio, cutting-edge technology (validated by many scientific publications, including 4 in 2007) and an
optimal intellectual property strategy: 8 new patents granted and 44 patent applications filed in 2007
alone, for a portfolio of 30 patent families.
l Cellectis‘ Scientific Foundations l 20
 PRODUCT PORTFOLIO

The therapeutic meganuclease porfolio includes proof-of-concept products for the treatment of rare
diseases. These products were selected because they are may provide therapeutic solutions for
disorders for which there is currently no appropriate treatment. They also make it possible to treat
target cells outside the patient’s body (ex vivo treatment), to facilitate MRS access to the gene and to
check the accuracy of DNA repair after genome surgery. These products should lead the way to the
application of meganucleases in the treatment of diseases affecting a larger number of patients.
Cellectis is developing products for the treatment of certain hereditary types of anemia (sickle-cell
anemia and thalassemia), latent infections caused by persistent DNA viruses (hepatitis B), products
against certain forms of cancer and products for reprogramming the DNA of a graft to reduce its
incompatibility with the recipient.

In agricultural biotechnology, meganucleases can be used to eliminate the random element of

transgenesis and to respect the integrity of genomes. Many specific meganucleases may be designed
and marketed for a single plant species. Each of these products, through its application, may help to
improve a specific agronomic feature of the plant: digestibility, potential for use in the manufacture of
biofuel and degradation of the resulting biomass, decreasing sensitivity to various industrial treatments
for transformation into a food product, the manufacture of new biofibers and compliance with
constraints linked to the depletion of natural resources and pollution.

Meganucleases make it possible to reprogramme a genome in a controlled and rational way.

They are therefore useful tools for researchers seeking to understand how genes and genomes
function. Cellectis is developing for ready-to-use kits for precise genetic modification in biological
research.

The industrial production of some therapeutic proteins is based on the use of Celectis meganucleases
for the development of certain bioproducts lines. The use of these enzymes saves time and reduces
costs in setting up of a production process for a therapeutic protein. Cellectis sells these products to
pharmaceutical and biotech companies.

Manque la traduction

DÉVÉLOPPEMENT THÉRAPEUTIQUE 2007 2008 2009 2010

Maladies Génétiques
Antiviraux
Autres affections
Cancer de la Peau
Immunodéficience
Anémie Falciforme
Hépatite B
Transplantation Allogenique
Cancer
Conception du MRS Test In Vitro Phase Pré Clinique Phase Clinique I/II

AUTRES DÉVÉLOPPEMENTS 2007 2008 2009 2010

Kits de Recherches Ciblage CHO
Constitutif Souris
Constitutif CHO
Constitutif Humain
BioProduction Métabolisme CHO
Plantes Cibles confidentielles
Conception du MRS Test In Vitro Ventes de Licences

ll Cellectis l Présentation
CellectisGenome CorporateAnnual
Engineering l Product
l 2007 Report 2006 portfolio l
l Présentation de Cellectis l 21 21
 INTELLECTUAL PROPERTY

As of December 31st 2007, the company held rights to 30 patent families, corresponding to 35 granted
patents (33 of which belong to the Pasteur Institute) and 113 pending applications (of which 64 were
filed by the Pasteur Institute and 49 were filed by Cellectis) in France and elsewhere throughout the
world. The table below details the number of granted patents and patent applications pending by
country/geographic zone.

Families of patents Patents Patent

and patent applications Applications

Zone 31 December 2007 ∆ 2006 31 December 2007 ∆ 2006

Homologous recombination Europe 34 +2 2 =

USA 3 = 3 +1
2
Other 5 = 0 =
1
Meganucleases Europe 1 +1 10(25) +2
1
USA 18 +5 18(26) +9

Other3 0 = 57 +23

Other Europe 24 = 5 +2

USA 1 = 11 +7
4
Other 2 = 7 =
1
Total pour 30 patent families 35 +8 113(51) +44

1: this figure includes PCT international applications, covering Europe and the USA in particular.
2: patents in Japan and Singapore.
3: patent applications in Canada, Australia, Japan, China and PCT international applications.
4: this figure includes European and French patents resulting from French priority applications.

In June 2007, the European Patent Office (EPO) refused an appeal concerning a European Patent
owned by Johns Hopkins University and licensed to Sangamo Biosciences, Inc. (“Sangamo”) revoked
in May 2005 by the EPO’s Opposition Division. Patent EP 0682699, entitled “Functional Domains In
Flavobacterium Okeanokoites (FOKI) Restriction Endonuclease”, had been granted on May 7th 2003
and constituted the basis of regional phase patents in France, Germany, the United Kingdom, Ireland
and Switzerland. The granted (and now revoked) claims covered technologies used in Sangamo’s
targeted recombination and gene correction programs.

Cellectis ensures the protection of its technology, products, know-how and data through non
disclosure agreements with its employees, consultants, partners, licensees and certain subcontractors.

l Cellectis l Corporate Presentation 2007 l Intellectual Property l 22

 STRATEGY & BUSINESS MODEL

To achieve its ambition of becoming the world leader in genome engineering and the global standard
for genome surgery, Cellectis has defined and initiated a clear strategy in which efforts are focused
on its core excellence: the design and the manufacture of genome programming systems.

Cellectis implements this strategy by

• Signing commercial agreements in its four target fields of application:

healthcare, biomanufacturing, agribiotech and research.

• The active diffusion of its technology as a research tool in leading academic and industrial laboratories.

• The high-priority commercialization of therapeutic products for the treatment of rare genetic diseases
and some types of viral infections, the development of new products to fight cancer and of products
for use in allogeneic transplantation.

• The development and sale of off-the-shelf research products (products designed and produced by
Cellectis and then sold extensively to public and private research laboratories to generate short-term
revenues).

• The strengthening of alliances with major industrial players in agribiotech.

• The underpinning of its competitive advantage by further enrichment of its patent portfolio
and knowledge-based extension of its technological lead.

The funds raised in Cellectis’ February 2007 IPO are being used (and will continue to be used) for

• Increasing the company’s current production capacity to reach a target of 20 MRSs per year by 2008.

• Strengthening its sales, marketing and communication teams.

• Intensifying its R&D efforts in the areas of meganuclease engineering, homologous recombination
and MRS production processes.

GOALS FOR 2007 & MILESTONES ACHIEVED AS OF DECEMBER 31ST 2007

Goal set at IPO Delivered as of December 2007

Contract 5 to 7 in agribiotech and biomanufacturing 5 - Celonic (April), GSK (May), Servier
(October), Transgenic (October) and Bayer
MRS delivery Delivery of 1 to 3 MRSs 1 MRS delivered to Bayer CropSciences
Delivery of 1 biotherapeutic MRS 3 - a first biotherapeutic MRS delivered to
Professor Fisher’s group (INSERM/Necker
Hospital, France), a second to Professor Sarasin’s
group (Institut Gustave Roussy/CNRS, France)
and a third to Professor Notarangelo’s group
(Boston Children’s Hospital)
Results Results for gene repair in patient cells Positive results obtained from the cells of a
patient with XP
MRSs designed 10 MRSs 18 MRS au total en portefeuille

l Cellectis l Présentation Corporate 2007 l Strategy & Business Model l 23

 Management team CORPORATE GOVERNANCE AS OF DECEMBER 31ST 2007
André Choulika, PhD, company founder, is one
of the pioneers in the analysis of meganucleases
and their applications in the modification of
complex genomes. He obtained his PhD in
Molecular Virology from the Pierre and Marie
Curie University – Paris VI before undertaking
postdoctoral research in genetics at Harvard
André Choulika, PhD.
Chief Executive Officer
David Sourdive, PhD, company cofounder.
After obtaining a doctorate in Molecular Virology
at the Pasteur Institute, David Sourdive joined one
of the leading laboratories in anti-viral immunology
at the University of Emory (Atlanta) to work
on immune memory. Before cofounding Cellectis,
David Sourdive, PhD.
Vice President Corporate Development
Marc Le Bozec, was Chief Operations Officer
at Alfact Innovation (Paris, France) until September
2006. He has over 10 years’ experience in
the biotech sector, first as a consultant (Arthur
D. Little, Paris office) and then as founder,
Marc Le Bozec
Chief Finance Officer
Frédéric Pâques, PhD, joined the company
in October 2001 as R&D Director and was
appointed CSO in June 2002. He has
internationally recognized expertise in DNA
recombination mechanisms. After graduating from
the Ecole Normale Supérieure (Paris), he gained a
Frédéric Pâques, PhD.
Chief Scientific Officer
BOARD OF DIRECTORS
Christian Policard, PhD, Chairman
Martin Bitsch, MD, (representing KamInvest)
André Choulika, PhD, Member
Alain Godard, Independent Member
Raffy Kazandjian, Independent Member
Thierry Laugel, PhD, (representing AGF)
Richard C. Mulligan, PhD, Independent Member
David Sourdive, PhD, Member
Thomas Tscherning, MD, (representing BankInvest)
Alain Guédon, censor (representing the Pasteur Institute)
l Cellectis l Corporate Presentation 2007 l Governance l 24
Medical School. At the Molecular Medicine
Department of Boston Children’s Hospital he
developed the initial basis for the therapeutic
applications of meganucleases in humans.
André Choulika also graduated from the
“Challenge+” business administration program
(HEC School of Management, Paris).
he managed the Biotechnology Laboratory
at the French Ministry of Defense’s Boucher
Research Centre from 1998 and 1999. He is
a graduate of the Ecole Polytechnique (Paris)
and the “Challenge+” business administration
program (HEC School of Management, Paris).
Chairman and CEO of BioProtein Technologies
(France), a company specializing in the production
of recombinant proteins in the milk of transgenic
animals. He is a graduate of the HEC School
of Management in Paris.
PhD at the University of Paris XI in 1994 before
taking up a postdoctotal post at Brandeis
University (Waltham, MA) where he performed
seminal work on DNA recombination in yeast. On
returning to France, he worked as a researcher at
the National Center for Scientific Research (CNRS).
SCIENTIFIC ADVISORY BOARD
François Jacob, MD,
Honorary Chairman and Nobel Prize winner
Rodney J. Rothstein, PhD,
Chairman
Frederick W. Alt, PhD
Bernard Dujon, PhD
Alain Fischer, MD
James E. Haber, PhD
Denis Pompon, PhD
Luis Serrano, PhD
 CREATIVITY
IIT’S IN OUR DNA
48 committed, expert staff,
including 17 PhDs
An experienced and complementary
management team providing strong
support for the company‘s projects

l l Présentation
Cellectis Genome Engineering l Présentation
Corporate 2007 l Présentation
Corporate 2006 l Présentation
de Cellectis l de Cellectis l 25
 MAIN FINANCIAL ITEMS

An icrease in running costs (+ 27%) Profit & Loss

In IFRS format for the fiscal year 2007, plus a comparison with the fiscal year 2006:
similar to the one in sales (+ 22%)
2007 2006
Figures in thousands of euros 12 months 12 months Deviation

Chiffre d‘affaires 1 448 1 188 22%

Other revenue 1 365 1 291 6%
Total revenue 2 813 2 480 13%
Purchases consumed (1 013) (577) 76%
Personnel costs (2 934) (2 226) 32%
Other operating expenses (3 433) (2 975) 15%
Tax (185) (197) -6%
Amortization (383) (390) -2%
Provisions (202) (28) 616%
Total operating expenses (80150) (6 393) 27%
Current operating income (5 337) (3 914) 36%
Other non-current income and expenses 5 (0)
Operating loss (5 332) (3 914) 36%
Cash & cash equivalents income 573 174 229%
Cost of financing, gross (20) (213) -91%
Cost of financing, net 553 (38)
Other financial income and expenses (2) (2) -12%
Income tax 1793 1 531 17%
Net loss for the year (2 988) (2 423) 23%
Résultat net (2 988) (2 423) 23%

Operating Revenue
Sales grew by 22% between 2006 and 2007, thanks to:
• The first contract for the delivery of a meganuclease with modified specificity (Bayer Biosciences),
followed by a second order.
• The signing of four additional contracts (Celonic, GSK, Servier and TransGenic).

Other revenue is mostly linked to public funding, which rose by more than 5% for the same period (thanks
notably to two European Commission grants). In 2007, Cellectis obtained another new grant from
the ANR (the French National Research Agency), the effects of which should start to appear in 2008.

Year-on-year operating revenue rose by 13% (from €2.48 million in 2006 to €2.81 million in 2007).

l Cellectis l Corporate Presentation 2007 l Main Financial Items l 26

 Operating Expenses
Purchases consumed are essentially consumables for research activities, which increased dramatically
from 2006 to 2007 – mostly due to a 127% increase in the purchase of reagents (up from €196,000
in 2006 to €445,000 in 2007). The number of staff (headcount) increased significantly over the period
and the company is performing additional activities downstream from the meganuclease platform (e.g.
cell biology to validate the potency and safety of meganucleases in cells), accounting for the €464,000
increase in purchases consumed from 2006 to 2007.

Personnel costs increased by more than 30%, due to the increase in headcount from 36 to 47 FTEs
(mostly in R&D) between the end of 2006 and the end of 2007.

Other expenses rose by over 15% between 2006 and 2007 (up from €2.975 million in 2006
to €3.433 million in 2007). The major changes are related to:

1. Leasing, covering equipment worth about €1.5 million.

2. A 96% increase in laboratory space rental costs (up from €287,000 in 2006 to €567,000 in 2007)
mainly due to the application of a full (unsubsidized) rental rate and the rental of additional space.

3. An increase in outsourcing, due to greater research activity (+€21,000 to Millegen, up from €348,000
in 2006 to €369,000 in 2007; €29,000 to APPLERA, a new subcontractor in 2007).

4. Royalties to the Institut Pasteur grew less rapidly than operating revenue (+7% vs. +22%),
as the rate payable by Cellectis on its sales is much lower than the that gained by the company from the
out-licensing of Pasteur Institute technology.

5. Travel expenses rose by about €45,000 between 2006 and 2007, due to intense business development
activity.

In parallel, one item (advertising) decreased significantly (-€100,000 between 2006 and 2007), as the IPO
advertising budget was included entirely in 2006 figures.

Provisions rose by €175,000 – mostly due to the depreciation of tangible assets related to the fitting out of
new laboratory space (€200,000). These provisions will no longer be incurred once the company’s move to
the Fleming building (under an agreement signed in early December 2007) has been completed.

l Cellectis l Présentation Corporate 2007 l Main Financial Items l 27

 Balance Sheet
In IFRS format for the fiscal year 2007, plus a comparison with the fiscal year 2006:

Figures in thousands of euros Decemberst 2007 Decemberst 2006 Deviation

ASSETS
Net intangible assets 9 17 -47%
Gross values 2 622 3 047 -14%
Depreciation, amortization and impairment losses (1 607) (1 260) 28%
Net tangible assets 1 015 1 787 -43%
Non-current financial assets 68 68 -0%
Deferred tax assets 6 550 4 985 31%
Total non-current assets 7 642 6 857 11%
Inventories 119 155 -23%
Trade receivables 434 685 37%
Current tax assets 2 314 2 132 9%
Other current assets 1 244 920 35%
Cash & cash equivalents 25 197 4 971 407%
Total current assets 29 308 8 864 231%
TOTAL ASSETS 36 950 15 721 135%
LIABILITIES v
Share capital 461 254
Share premiums and reserves 32 392 6 240 419%
Net loss for the year (2 988) (2 423) 23%
Equity 29 865 4 071 634%
Retirement benefit obligation 26 20
Other financial liabilities 1 446 6 460 -78%
Total non-current liabilities 1 472 6 480 -77%
Short-term provisions 69 69 0%
Trade payables 4 558 4 412 3%
Other current liabilities 986 690 43%
Total current liabilitiess 5 613 5 171 99%
TOTAL EQUITY & LIABILITIES 36 950 15 721 135%

Assets
Tangible assets felt by over 40%, mainly because of (i) lease-back on fixed assets (laboratory equipment)
amounting to over €300,000 and (ii) depreciation in the value of fitting-out work (see above) amounting
to over €200,000.

Deferred tax assets grew by €1.5 million between the end of 2006 and the end of 2007. Deferred
tax assets essentially include accumulated losses (growing constantly, since the company has generated
losses ever since its creation).

Cash & cash equivalents jumped from €5 million at the end of 2006 to €25 million at the end of 2007,
due to the equity increase at IPO (€22.2 million in net proceeds).

Liabilities
Equity at the end of 2007 mostly reflects Cellectis’ IPO on the NYSE-Euronext Alternext market
in February 2007 (€22.2 million in net proceeds).

Other financial liabilities fell by €5 million – essentially because of €5.6 million in bonds issued
in May 2005, which were reimbursed in shares at the IPO price (€10.25 per share).

l Cellectis l Corporate Presentation 2007 l Main Financial Items l 28

 Cash Flow Statement
In IFRS format for the fiscal year 2007, plus a comparison with the fiscal year 2006:

Figures in thousands of euros 2007 2006

Net loss for the year (2 988) (2 423)

Depreciation; amortization and impairement losses 585 419
Change in fair value of financial instruments (11) 203
Net income from sale of tangible assets (319)
Change in deferred taxes (1 593) (1 318)
Share-based payment expense 241 51
Cash flow from operating activities before change in working capital (4 086) (3 068)
(Increase) / decrease in accounts receivables 252 687
(Decrease) / increase in accounts payables 145 965
Change in taxes payables (182) (732)
Change in other operating assets and liabilities 14 (243)
Change in working capital 230 677
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (3 857) (2 391)
Acquisition of intangible assets (6)
Acquisition of tangible asset (95) v (479)
Net income from sale issuance of common stock 319
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 217 (479)
Additional long-term borrowings 550 200
Repayment of long-term borrowings (5 410) (36)
Proceeds from issuance of common stock 28 724 26
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 23 864 191

CHANGE IN CASH & CASH EQUIVALENTS 20 225 (2 679)

Opening cash ans cash aquivalents 4 971 7 650
Closing cash ans cash aquivalents 25 197 4 971
CHANGE IN CASH & CASH EQUIVALENTS 20 225 (2 679)

The net increase in cash and cash equivalents over the fiscal year 2007 was around €20 million,
corresponding to the balance between the cash used in operations (about €4 million, including
the net loss for the year of about €3 million) and just over €24 million provided by financing activities
(essentially the gross proceeds of the IPO).

l Cellectis l Présentation Corporate 2007 l Main Financial Items l 29

 © Cellectis SA, 2008

Rédaction :
Caroline Carmagnol (AlizeRP) et Céline Toral

Couverture :
Ramon Martinez (Compression et photographie)

Photos :
Karim Daher / Cédric Porchez (portraits page 24)

Conception Graphique :
Valentina Herrmann / Reto Zollinger

Impression :
STIPA, Montreuil Cedex

Cellectis SA, Parc Biocitech,

102 Avenue Gaston Roussel, F-93230 Romainville
Tél. +33 1 41 83 99 00, Fax +33 1 41 83 99 03

investors@cellectis.com, www.cellectis.com
www.cellectis.com