Genome Engineering

2006 CORPORATE PROFILE

INNOVATION.
IT’S IN OUR DNA.
Cellectis, genome engineering: the first
”cut & paste“ for living organisms.
 TABLE OF CONTENTS

5 Presentation of Cellectis

6 Important events in 2006

8 Letter from the CEO

12 Cellectis: origin and approach

14 Markets and products

16 Product portfolio

18 Strategy and business model

20 Sales policy

22 Governance

24 Main financial items

Cellectis, unique know-how in genome
engineering at the service of health, agronomy
and biotechnology.

CREATIVITY.
IT’S IN OUR DNA.
A revolution in the field of biotechnology,
Cellectis technology is one of the few
available means of intervening in any
living cell in any predetermined position.
 PRESENTATION OF CELLECTIS
Cellectis is a biotech company specialising in an
innovative approach to genome engineering:
rational genome engineering. This revolutionary
technology has enabled Cellectis to open up new
possibilities for astute, precise genome engineer-
ing, making it possible to rewrite the genetic code
of any living organism.
Cellectis has constructed its proprietary technology
on the basis of Institut Pasteur patent licences. This
new DNA reprogramming system, the Mega-
nuclease Recombination System or MRS, makes it
possible to ”cut & paste” DNA. It involves the ar-
tificial induction of the natural DNA repair system
present in cells. It has been patented and can be
used on any living organism.
A world leader in the design and manufacture of
the MRS, Cellectis is continuing to invest and to
innovate, to perpetuate its technological advance.
Cellectis sells its MRS to industry, in which it is
used in three highly commercial fields:
1. Human health (genetic and viral diseases,
transplantation and cell therapy)
2. Agronomy (plant improvement – seeds and
biomass)
3. Biotechnology (improvement of recombinant
protein production and quality, bio-drugs)
Cellectis actively distributes its technology to the
leading academic laboratories for use as a research
tool, and this system is rapidly becoming a world-
wide technological standard.
l Cellectis l 2006 Corporate Profile l Presentation of Cellectis l 5
From its foundation until 2005, Cellectis generated
income through sub-licensing agreements based
on the Institut Pasteur portfolio of patents for
technology protecting homologous recombination
and natural meganucleases, to which the Institut
Pasteur has acquired exclusive rights. During this
period, Cellectis developed its revolutionary tech-
nology, making it possible to modify the specificity
of meganucleases for natural genomic targets.
In 2006, this new MRS proprietary technology
enabled the Company to adopt a product-driven
business model, with the capacity to generate
innovative products. Cellectis MRS technology
has already been the subject of a first agreement
with an agricultural biotech company (Bayer
Biosciences) and should give rise to more than five
commercial agreements with international groups
in the agricultural biotech field by 2008. In 2006,
the Cellectis product portfolio included 10 mega-
nucleases, including six designed for therapeutic
purposes and one for research purposes (IGR). The
Company intends to increase its annual production
capacity from 8 to 20 MRS per year by 2008, with
the objective of having 40 MRS actively in use by
2010.
Cellectis has already entered into 45 agreements
worldwide with pharmaceutical companies (inclu-
ding AstraZeneca, Merck & Co., Wyeth and Shire
Pharmaceuticals), agrochemical groups (including
Bayer, Limagrain Biogemma, DuPont and BASF)
and biotech companies (including Genentech,
Celonic, Regeneron and Lexicon Genetics).
Cellectis’ considerable Research & Development
efforts are supported by a sustained policy of
academic and technological partnerships with the
CNRS, INSERM, CNIO (Centro Nacional de Inves-
tigaciones Oncologicas, Spain), and the European
Molecular Biology Laboratory in Germany.
Founded in 2000 by André Choulika and David
Sourdive, Cellectis has its headquarters in Romain-
ville (France) and has 40 employees, including
16 with PhDs. By December 31 2006, Cellectis
had raised a total of 17.5 M euros in two rounds
of financing with AGF Private Equity, BankIn-
vest Biomedical Venture, Edmond de Rothschild
Investment Partners, Kaminvest Holding (BA) and
Odyssée Venture.
 IMPORTANT EVENTS IN 2006

2006 Change in Cellectis’ economic model, moving from the sale of technology sublicences granted as
exclusive licences by the Institut Pasteur, to the sale of products derived from our own proprietary
technology.

June 2006 Signing of first significant contract with Bayer Biosciences, in the domain of agronomy.

July 2006 Signing of a licence swap agreement concerning homologous recombination, with Lexicon Genetics Inc.
(US), a world leader in this field.

September 2006 Delivery of a first MRS for therapeutic purposes.

October 2006 Arrival of Marc Le Bozec, founder and former CEO of BioProtéine Technologies, as Financial Manager.

November 2006 Production of 8 MRS, including five for therapeutic purposes, over a period of 12 months.

January, March and Publication of three articles in renowned international journals including:
November 2006
January 2006: Publication in the Journal of Molecular Biology of an article concerning the large-scale
production of specifically modified meganucleases (validating the Company’s commercial potential).

March 2006: Publication in the Journal of Gene Medicine of an article on the first known
attempt at meganuclease genomic surgery in vivo (in animals).

November 2006: Publication in Nucleic Acids Research of an article on the production of a

meganuclease targeting genes involved in human immunodeficiency.

November 2006 Preparation of a stock exchange flotation procedure to obtain further funds to consolidate the
Company’s growth and increase its market presence.

Q3 2006 Confirmation of Cellectis’ capacity to deliver a product within a relatively stable deadline, based
on an identified target DNA (9 months on average).

2006 First full production year for specifically modified meganucleases (MRS based on Cellectis technology).

2006 Filing of three further patents and issue of a new patent title for the Company.

February 2007 Success of its initial public offering on the Alternext market of Euronext Paris. Cellectis raised
24.4 million euros (prior to deduction of bank commissions and legal & administration fees associated
with the offering).

l Cellectis l 2006 Corporate Profile l Important events in 2006 l 6

 AMBITION.
IT’S IN OUR DNA.
2006, a transition year, was marked
by a change in gear for the economic model,
significant advances concerning products,
the delivery of 8 MRS and the preparation of
a flotation on Euronext Paris Alternext.

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

 LETTER FROM THE CEO

2006 was an eventful and decisive year in the life of Cellectis, marked by our entry into a significant
and thrilling development phase – the first full year of production of a series of 8 meganucleases with
new DNA target specificities and preparation for our subsequent IPO on the Alternext market of Euro-
next (completed in 2007).

In 2006, Cellectis changed up a gear in its business model by moving from technology licensing toward
sales of self-made products, with our proprietary product platform generating Meganuclease Recombi-
nation Systems (MRSs) to unprecedented timelines.

Dr. André Choulika We also made significant progress in (i) our novel approach to ”genome surgery“ for treating viral
CEO and genetic diseases and (ii) the MRS production process. These unique products for ultraprecise DNA
reprogramming are capable not only of improving drug discovery & manufacturing processes and
boosting varietal improvement programs for plants of agricultural or horticultural importance but are
also revolutionizing approaches to molecular medicine.

I am proud to say that we have achieved our first objective – the production of meganucleases with
new specificities for targeting genes of interest in our three strategic markets: human healthcare,
agriculture and biotechnology. Over the summer of 2006, we signed our first custom meganuclease
production contract in the agricultural sector (with Bayer BioScience). In October 2006, we delivered
our first therapeutic candidate (an MRS enabling correction of a mutation responsible for xeroderma
pigmentosum, a type of skin cancer) to our academic partner, the CNRS government research lab at
the renowned Gustave Roussy Institute. During the same period, we signed a cross-licensing agree-
ment in the field of homologous recombination with a major US player in this field, Lexicon Genetics
Inc. We equally initiated the production of 5 novel, therapeutically-focused MRSs, designed to address
several forms of monogenic severe immune deficiencies as well as broader applications in allogenic
transplantation, anemia and hepatitis. Other MRSs have been designed as biotechnological reagents
for enabling industrial or academic research centers to accelerate their drug and target discovery and
development processes. We have also created products which help rationalize or accelerate industrial
manufacturing timelines for biotherapeutics.

We have invested significant resources in order to create a solid portfolio of innovative and diversified
products, generated by a platform which constitutes a true technological breakthrough in the biotech
industry.

We have seized a world-leading position in the discovery and manufacture of meganucleases with
modified specificities, and our cutting-edge results are regularly published in international peer-reviewed
journals, such as the Journal of Molecular Biology and Nucleic Acid Research. These articles testify to
the quality of our highly innovative research. We have solved complex biological problems – giving us a
significant competitive advantage, supported by an aggressive patent policy.

Our priority markets – the pharmaceutical, biotech and agricultural industries – are increasingly oriented
towards the exploitation of discoveries generated through molecular biology, biochemistry, and geno-
mics. Hence, we integrate perfectly into this value chain and provide it with additional depth. In fact, our
molecules are able to act on (and thus correct) the genetic information itself, for a variety of therapeutic
or industrial purposes. We offer these industries a rational way of exploiting genomic data from biological
systems, in order to extract and make use of the information needed to develop tomorrow’s drugs and
bioproducts. Furthermore, our products enhance and rationalize the manufacturing processes for tomor-
row’s biotherapeutics, biofuels, biofibers and other natural extracts.

Over the last 7 years, we have heavily invested to make Cellectis the world leader in genome engineering
and meganucleases with tailor-made specificities. We are continuing to broaden our self-owned patent
portfolio and expand the intellectual property exclusively licensed to us by Institut Pasteur.

We regularly invite critical appraisal and comment from our Scientific Advisory Board – composed of
world-renowned, independent experts in our field of activity and who act as guarantors of our scientific
excellence.

l Cellectis l 2006 Corporate Profile l Letter from the CEO l 8

 Our strategy – focusing on our strengths and exploiting them fully
Cellectis is a pioneering company in the field of meganuclease-based genome engineering. We are exploit-
ing (and will continue to exploit) our privileged positioning and innovative products in order to seize sig-
nificant market share in our three target markets. We believe that the value of our company is proportio-
nal to our scientific excellence, the range of highly innovative active substances we own and our ability to
create new ones, our alliance management capacities, the size of the markets that our current and future
products are targeting, our financial strength in developing and commercializing these products and the
skills and talent of the people who are contributing to Cellectis’ success.

Our scientific research

Our R&D platform has already generated 12 novel meganucleases targeting high value genomic DNA
targets, 8 of which were created and produced in 2006. Each meganuclease makes a unique, site-specific
break in the genome of a given living species, in order to induce DNA repair and recombination. Thus, each
meganuclease has a unique application in a single organism and is covered by a specific patent. We are
exploiting our technology in order to reprogram cellular DNA in a rational and effective way. Our ability
to generate a large variety of meganucleases with novel, dedicated specificities prompts us to envisage a
broad range of business opportunities for our products. A meganuclease can act as a therapeutic product if
it enables the repair of a gene responsible for a human disease (restoring healthy cellular functions) but can
also be used as a production tool for biologicals such as recombinant therapeutic proteins and novel prod-
ucts from agricultural biotechnology (in order to reduce soil pollution or optimize biomass management,
for example). Lastly, targeted DNA recombination enables researchers to achieve a better understanding of
genetic programs and helps them develop new drugs and therapies.

Our target markets

In the mid to long-term, our objective is to develop a range of therapeutic products for (i) treating
monogenic genetic diseases, (ii) fighting persistent viral infections and (iii) reducing graft rejection (the
healthcare market). In addition, we are manufacturing products which generate revenue in the short
to mid-term as research reagents (the research market) and processing aids in protein production and
biomanufacturing (the biotechnology market). Lastly, we aim to develop products which would enable
the generation of new varieties of seeds, produce biofuels and create novel biofibers and biomaterials in
the agricultural biotechnology market. Since the company’s incorporation, Cellectis has signed over 45
international industrial agreements in these three target markets.

Our intellectual property portfolio

In seven years, we have built up a portfolio of almost a hundred patents and patent applications – some
of which are exclusively licensed to us by Institut Pasteur and others of which have been filed by our
researchers - and we shall continue to grow this portfolio by exploiting our unique know-how in protein
design and genome engineering. In fact, the portfolio is composed of 27 granted patents and 69 pending
patent applications covering commercially valuable territories such as Europe, the USA and Japan (one of
which was granted to the company and with 3 new filings in 2006). Even though the portfolio of patents
in-licensed from Institut Pasteur is maturing, the recently-filed patent applications and those wholly
owned by Cellectis are giving greater protection to our technologies and products.

Our financial status

The last few years have featured intensive investments in fitting out and furnishing our labs. In 2006,
our income statement showed an operating loss of 3.7 million. As of December 31st, 2006, the company
held 5 million in cash and cash equivalents, i.e. a decrease of 2.5 million relative to 2005. Revenues
amounted to 2.5 million and reflect the product shift in our business model – that is to say our migration
to a business model based on commercialization of MRSs generated by our platform, which thus limits
revenues from our sales of sublicenses to Institut Pasteur’s technologies. 2006 was the launch year for
our own MRS sales; we have initially focused on our custom offering of meganucleases with dedicated
specificities in the field of agricultural biotech in order to start building our product portfolio – represent-
ing the company’s current and future assets and value – and have generated our first revenues from sale
of our own MRSs.

l Cellectis l 2006 Corporate Profile l Letter from the CEO l 9

 The people behind Cellectis
We have strengthened our management team and have been able to attract Marc Le Bozec (the former
CEO and founder of BioProtein Technologies) to act as the company’s CFO. Marc’s arrival also enabled
us to initiate the IPO preparation process in October 2006. David J. D. Sourdive took up his new position
as VP Corporate Development and immediately boosted the company’s commercial activity with the
strong emergence of our dedicated-specificity meganucleases. Our Board of Directors (chaired by
Christian Policard) tragically lost one of its distinguished members – François Hyafil, Scientific Director of
Glaxo SmithKline’s research center in Les Ulis, south of Paris. Our Board of Directors, Scientific Advisory
Board and management team are all composed of highly qualified individuals capable of taking the
company to the top in this industry and who fully endorse our corporate mission through their demon-
strated day-in, day-out commitment to growing Cellectis.

Thus, 2006 was truly a year of exciting change for Cellectis, as the company triggered a new phase of
its business model based on sales of self-made products. 2006 was also the year during which we laid
the foundations for our future development and robust & enduring value creation for our shareholders.
I am convinced that 2007 will see us confirming our ability to translate our innovations into a variety of
breakthrough products. Thanks to the support of our shareholders and the commitment of our people,
I have great confidence in the pursuit of our efforts to confirm and strengthen our position as leaders in
rational genome engineering in what is a highly competitive biotechnology market. We shall also rein-
force our visibility and impact thanks to demonstrated proofs-of-concept for Cellectis technologies. Our
products will constitute the cornerstones of tomorrow’s biotechnology and will deliver improved quality
of life to millions of individuals – by respecting what makes them individuals, in fact!

I wish to thank you for your ongoing support and confidence in Cellectis.

André Choulika,
Chief Executive Officer

l Cellectis l 2006 Corporate Profile l Letter from the CEO l 10

 RESPECT.
IT’S IN OUR DNA.
The only available technology for precise
intervention in the DNA genomes of diverse
organisms, to correct a defective gene
without damaging the rest of the genome
or adding foreign genes.

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

 CELLECTIS ORIGIN AND APPROACH

DNA is the blueprint for all the functions of living organisms. The first attempts at DNA modification,
aiming to reprogramme cells, were initiated in the 1970s and fostered the biotechnological revolution.
However, the major applications of this work are still based on the random insertion of DNA sequences
in the genomes of living organisms. This is the case for gene therapy and the production of therapeutic
proteins, such as insulin (the first biotechnological drug, approved in 1982), growth hormone and
erythropoietin (EPO), the best-selling therapeutic wordwide, accounting for over 10 billion dollars of
sales in 2005 (source: Arthur D. Little).

The random insertion of genetic material is currently the main obstacle to the development of gene
therapy, as it may entail a certain number of deleterious consequences. The entire human genome has
been sequences and has been available since 2000. This important milestone in scientific progress has led
to an acceleration in the decoding of many other genomes. As a result, huge amounts of data are now
available to researchers, concerning the genetic programmes of diverse species and the underlying basis
of many diseases. However, access to this information, for its correction or exploitation, remains very
limited.

Cellectis is the first company in the world to commercialise a technology for in vivo intervention in the
genomes of various species. For the first time, thanks to Cellectis technology, a defective gene can be
corrected in situ, without damaging the rest of the genome or adding foreign genes.

The foundation of the Company was based on the following idea: we will only be able to exploit what is
encoded by the genome of living organisms once we know exactly how to reprogramme the DNA in a
rational and precise manner. Cellectis has designed an artificial system, based on induction of the natural
DNA repair system, making it possible to “cut & paste” genetic material in any specifically selected gene.

Cellectis invested seven years in the transition from the design stage to the commercialisation of its
products and development of its platform based on proprietary technology: a new type of
“molecular scissors” – meganucleases – capable of very specifically recognising, fixing and cutting
DNA. The Company designs and manufactures meganuclease recombination systems (MRS),
which associate the “molecular scissors” with a DNA matrix. The MRS can be used to modify and
correct DNA sequences in vivo, in a precise and reliable manner, without the need to add foreign
genes. An MRS consists of a protein, the meganuclease, which reliably recognises and cuts the target
DNA sequence, and a repair matrix containing the information to be inserted at the cleavage site, to
modify the gene in the desired manner.

l Cellectis l 2006 Corporate Profile l Cellectis origin and approach l 12

 DIVERSITY.
IT’S IN OUR DNA.
Applications in three target markets with
high commercial potential:
biotechnology, agronomy and health.

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


Products Pipeline
Building a diversified
pipeline. Securing
mid-term profitability
an long-term upside.
l Cellectis l 2006 Corporate Profile l Markets and products
MARKETS AND PRODUCTS
Biotechnology (a booming market estimated at several
billion dollars – source: Datamonitor, April 2005)
In the field of therapeutic protein production, Cellectis MRS applications have unique competitive
advantages in terms of production processes, decreases in cycle time and improvements in therapeutic
protein quality. The specificity of MRS ensures the safe and reliable targeting of active genome sequen-
ces. MRS are also very simple to use in the development of manufacturing processes.
Agronomy (seed market estimated at 30 billion dollars in 2005 – source: Vilmorin, July 2006)
In this field, few traditional approaches meet the need for improvements in agronomic traits and for
rapid, rational and safe intervention. MRS applications can increase productivity, limit environmental
impact and improve the biomass and qualitative nutritional qualities of seeds. The specificity of MRS
makes it possible to control the end product and reduces the time required to develop improved seeds.
This system also has the advantage of avoiding the insertion of foreign DNA (the SAGE – Sans
Adjonction de Gène Etranger, without the addition of a foreign gene – system). It can also replace a
given allele of a given gene in the plant by a different allele from the same plant and remove traits
considered undesirable by certain consumers.
Health (a booming market with enormous potential)
The main applications of ”DNA surgery“ concern genetic diseases (gene reparation), viral diseases
(virus excision) and cell therapy (tissue transplantation and engineering), for which traditional pharma-
ceutical approaches have proved ineffective.
The potential clinical benefits to patients are significant. Therapeutic meganucleases have tremendous
commercial potential and represent a totally innovative approach to medicine. Therapeutic mega-
nucleases can be used to modify the defective gene, thereby treating the cause of the disease rather than
its effects. They can be used to treat diseases resistant to conventional pharmacological approaches: they
can repair, insert or inactivate a genomic target, including certain viral DNA genomes, with surgical
precision. Finally, therapeutic meganucleases can also be used alone, in the absence of a reparation
matrix, to induce cleavage in a DNA target. The genetic information at the cleavage site can then be
modified or eliminated (inserted DNA viruses, for example) to restore normal cell functioning.
In the field of research
Finally, specifically modified meganucleases have many potential applications as research tools,
particularly for studies of gene function. Commercial prospects in this field are more limited, but the
widespread use of the Company’s innovative technology in this field could lead to its being adopted
as the global standard for rational and precise genome modification.
PRODUCT PORTFOLIO
Therapeutic Development 2006 2007 2008 2009 2010
Proof of Concept Skin Cancer
Immunodeficiency
Potential Blockbusters Sickle Cell Anemia
Hepatitis B
Allogenic transplant
MRS Design In vitro Testing Preclinical Trials Phase I/II
Commercialisation of Tools 2006 2007 2008 2009 2010
Pharmacogenomic / 10
BioProduction Mouse constitutive
CHO constitutive
Human constitutive
Plants N. D. Target
MRS Design In vitro Testing Licensing Out
l 14
 VALUES.
IT’S IN OUR DNA.
Construction of an extensive portfolio
of products to secure income generation.

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

 PRODUCT PORTFOLIO

An extensive and solid patent portfolio protecting the Company’s technology,

products, know-how and data

On October 1 2006, the Company held the rights to 20 families of patents, corresponding to 27 patents
already granted (26 belonging to the Institut Pasteur) and 69 under examination (38 filed by the Institut
Pasteur and 31 by the Company), in France and abroad. In 2006, Cellectis obtained one patent in its own
right and filed three new patent applications.

The Company has decided to protect its technology, products, know-how and data (the accumulation
of genomic sequence data for many organisms has continued since the genomic revolution in the 1990s
when the human genome sequencing programme began) not only by patents, but also through
the conclusion of confidentiality agreements with its employees, consultants, certain subcontractors, its
partners and licensees.

Granted Patent Application Being CLS

examined
Homologous Recombination Europe 1 2 0
USA 3 2 0
Others 5 0 0
Meganucleases Europe 0 8 0
USA 13 9 6
Others 0 34 12
Others Europe 2 3 1
USA 1 4 2
Others 2 7 3
Total 27 69 24

l Cellectis l 2006 Corporate Profile l Product portfolio l 16

 EXCELLENCE.
IT’S IN OUR DNA.
State-of-the-art science, unique in the
world, with no equivalent intellectual
property in rational genome engineering.

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


Within the next three to five
years, Cellectis intends to become
the world leader in genome
engineering and the worldwide
reference in genomic surgery.
l Cellectis l 2006 Corporate Profile
STRATEGY AND BUSINESS MODEL
Cellectis is following a clear, defined strategy to achieve this goal. We are focusing our efforts on our
field of excellence: the design and manufacture of genomic programming systems. This will enable the
Company to implement its strategy as follows:
• The signature of commercial agreements in its three priority fields of application: health, biotechnology
and agronomy.
• The active distribution of its technology as a research tool for leading academic and industrial
laboratories.
• The priority commercialisation of on-shelf products (products designed and manufactured
by Cellectis and sold on a large scale in a non-exclusive manner, as opposed to tailor-made products,
ordered by a customer and sold exclusively).
• The consolidation of privileged partnerships in health and agronomy concluded with certain key
accounts.
• The perpetuation of its competitive position by the ongoing expansion of its patent portfolio
and continuing technological advance through its know-how.
To date, the income of the Company has been derived from the sale of sublicences for technologies
stemming from its historical partnership with the Institut Pasteur (40% of royalties owed to the Institut
Pasteur). Since 2006, Cellectis has entered a new stage of its economic development and now genera-
tes income by the sale of products based on its own technology (3% of royalties owed to the Institut
Pasteur).
The funds that the Company intends to raise in 2007 will be used:
• To increase current production capacity to the level of 20 MRS per year by 2008.
• To strengthen the sales, marketing and communication teams.
• To intensify its research and development efforts concerning meganuclease engineering, homologous
recombination and the MRS manufacturing process.
l Strategy and business model l 18
 THE FUTURE.
IT’S IN OUR DNA.
2006: The year of the commercial launch of MRS.

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

 SALES POLICY

Each MRS concerns a single application, relating to a given gene in a given organism. Indeed, the mega-
nuclease “scissors” cut at a unique DNA sequence, existing only at the desired site in the given organism.
The meganuclease cannot cut at other sites and is therefore of no use for other applications.

Meganucleases are manufactured in two stages: meganuclease manufacture and MRS manufacture
(meganuclease recombination system). This entire process takes about nine months and requires several
highly qualified individuals and complex robotic equipment in specialised laboratories. At the end of this
process, Cellectis has an MRS that modifies the identified target genome for a customer (tailor-made
product) or for the general market (on-shelf product or therapeutic product).

There are many thousands of potential targets in human or animal genetic diseases, viruses, genes
involved in transplant rejection, plant genes for the production of ”green“ fuel or biofibres, chromosome
positions in mammal cells for the production of biotechnological drugs, and so on. Cellectis’ strategy is to
invest its efforts in targets with a very high commercial potential (on-shelf products and therapeutic pro-
ducts), and to satisfy requests from current and future customers to manufacture products in the scope of
the value chain of high-potential markets.

Cellectis’ first products were released during the third quarter of 2006 and their commercialisation was
based principally on the existing customer portfolio. A first contract was signed in spring 2006 with Bayer
Biosciences, an agrobiotech company (tailor-made product). Several other contracts of the same type
are being negotiated, five to seven of which should be signed in 2007, principally in the agronomic and
biotechnology fields (bioproduction).

MRS are commercialised in three ways:

For therapeutic products – Cellectis identifies an interesting target and develops an MRS up to the vali-
dation stage, with the possible intervention of third parties (academic partners, service providers, research
companies under contract, etc.). Once validated, the product is offered, under exclusive licence, to a
pharmaceutical group or a biotechnology company, which can then continue clinical trials in humans to
obtain an authorisation for market release.

For tools – Cellectis identifies an interesting target and develops an MRS up to the validation stage, with
the possible intervention of third parties (academic partners, service providers, research companies under
contract, etc.). It then sells the manufactured product (kit), non-exclusively, to various customers (on-
shelf product).

For tailor-made products – the customer defines its specific needs and Cellectis develops a tailor-made
MRS for its exclusive use. This type of contract involves advance financing by the customer, before the
delivery of the MRS (tailor-made product). Cellectis is paid based on the profit generated by the MRS in
the product value chain developed by the customer.

Income resulting from MRS sales:

• Lump-sum licence payment for access to the technology (“upfront”).

• Payments once technical and/or regulatory milestones have been overcome.

• Annual lump-sum payments for intellectual property maintenance (“annual fees”).

• Payment of royalties on finished product sales.

l Cellectis l 2006 Corporate Profile l Sales policy l 20

 PRECISION.
IT’S IN OUR DNA.
A team of 40 employees, including
16 with a PhD.

l Cellectis Genome Engineering l Annual Report 2006 l Présentation de Cellectis l 21

 GOVERNANCE
André Choulika (aged 42), PhD, founder of the
company. Dr. Choulika is one of the pioneers in
the field of meganuclease analysis and applications
for complex genome modification. He obtained
his PhD in molecular virology from the Pierre and
Marie Curie University - Paris VI, before moving
on to a postdoctoral position in the Genetics
Dr. André Choulika
CEO
David Sourdive (aged 40), PhD, and cofounder of
the company. After completing his PhD in
molecular virology at the Institut Pasteur, Dr. Sour-
dive joined one of the leading laboratories in the
field of anti-viral immunology, at the University
of Emory (Atlanta, USA), where he worked on
Dr. David Sourdive
Vice President
Corporate Development
Marc Le Bozec (aged 37). Until September 2006,
Marc Le Bozec was Operations Manager with
Alfact Innovation (Paris, France). He has over ten
years’ experience in biotechnologies as both a
consultant (Arthur D. Little, Paris office), and then
Marc Le Bozec
CFO
Frédéric Pâques (aged 40), PhD, joined the
Company in October 2001 as Research and Deve-
lopment Manager. Frédéric Pâques is a world-
renowned expert in the field of DNA recombina-
tion mechanisms. A former student at the Ecole
Normale Supérieure (Ulm), he obtained his
Dr. Frédéric Pâques
CSO
l Cellectis l 2006 Corporate Profile l Governance l 22
Department of the Harvard Medical School.
Subsequently, at the Molecular Medicine depart-
ment of Boston Children’s Hospital, he developed
the first approaches to the use of meganucleases
in human therapy. He also trained at the HEC
(Challenge +).
immunological memory. Before founding the
Company, he directed the Biotechnology Labo-
ratory at the Centre d’études du Bouchet / DGA
(Ministry of Defence) between 1998 and 1999.
He also trained at the prestigious Ecole Polytechni-
que and the HEC (Challenge +).
as founder and CEO of BioProtein Technologies
(France), a company dedicated to the production
of recombinant proteins in the milk of transgenic
animals. He holds an HEC degree.
PhD from University Paris XI in 1994 before under-
taking postdoctoral studies at Brandeis University
(Waltham, MA, United States of America),
where he led major projects on DNA recombination
in yeast. On his return to France, he took up
a position as a researcher at the CNRS.
 BOARD OF DIRECTORS

Scientific Committee
Pr. François Jacob
(Honorary Chairman)
Rodney J. Rothstein
(Chairman)
Bernard Dujon
James E. Haber
Luis Serrano
Denis Pompon
Frederick W. Alt
Finance Committee
Raffy Kazandjian
(Chairman)
Thomas Tscherning
Marc Mortureux
Marc Le Bozec
Chairman of the Board of Directors: Christian
Policard (aged 58) holds a PhD in biochemistry.
After founding and developing various biotech-
nology companies in France and the United States
(1972–1983), he worked for Sanofi Synthelabo
(1983–1999), becoming a member of the Execu-
tive Committee in 1988. He served as Valorisa-
tion and Industrial Partnerships Manager at the
Martin Bitsch (aged 62), permanent representative
of Kaminvest Holding, administrator, MD, for-
mer intern of hospitals in Denmark and Sweden.
After ten years of medical practice, he joined the
pharmaceutical industry by becoming Director of
Clinical Investigations with Roche for Scandina-
via and then for America and Europe and finally,
the world. In 1996, he joined the IBAH group,
Institut Pasteur (2000–2005), and then became
Vice Chairman of the Israeli virtual biotechnology
company incubator, EAGER BIO. In early 2002, he
also cofounded the joint-venture company Biotech
Développement Conseils, of which he is still a
shareholder.
firstly as director of the Scandinavian zone, then
as supervisor in Russia, Belarus and the Ukraine.
Between 1998 and 2004, he was an independent
investment advisor for Bankinvest Venture, a fund
specialising in French biotech companies. He is also
a former permanent representative of Bankinvest
on the Company’s Board of Directors.

Remuneration Committee André Choulika, CEO and founder

Christian Policard
(Chairman) Raffy Kazandjian (aged 46), Administrator, holds a
Raffy Kazandjian chemical engineering degree from the ENSCP, an
AGF Private Equity MIT (MS 1985) degree and an INSEAD business
(T. Laugel) administration degree (MBA 1990). With 15 years
of experience in venture capital management, Raf-
fy Kazandjian started his professional career with-
in the multinational company Procter & Gamble
(1985). Between 1990 and 1994 he founded and
managed two French biotechnology companies
(Biovector and Medafor), then joined Synthélabo
(1994) as director of over-the-counter drugs group
strategy. Raffy Kazandjian became Chairman and
Executive Committee member of CDC-Innova-
tion (1998–2000), one of the most important
French funds, which he joined in 1996. Finally, he
founded Unicorn BioTutors, a consultancy com-
pany providing counselling and assistance for small
and medium-sized companies in the biotech and

Thierry Laugel (aged 40), permanent representa-
tive on the AGF Private Equity Board of Directors,
holds a doctorate in Pharmacy, a PhD in pharma-
cology and an MBA from INSEAD. He joined AGF
Private Equity in 2006. From 1998 to 2006, he was
Managing Director of PharmaVent Partners, after
working as a health investment manager with CDC
Entreprises Innovation. During these years, he was
a reference investor in more than ten companies in
Europe and the United States and was a member
of the Boards of Directors of most of these compa-
nies. Before becoming involved in venture capital
management, Thierry Laugel held managerial
positions in pharmaceutical (Fournier Japan) and
biotech (Flamel Technologies) companies.

David Sourdive, Corporate Commercial Manager

and co-founder

Thomas Tscherning (aged 39), a permanent re-
presentative of Bankinvest, joined the BankInvest
Group (Denmark) health and biotechnology team
in 1997. As a former clinical investigator, Thomas
Tscherning has solid experience in the clinical
stages of therapy development. He holds an MD
from the University of Copenhagen, which awar-
ded him first prize for his thesis on neuroimmuno-
logy. He also worked as a postdoctoral research at
the Karolinska Institute (Sweden), and has written
more than 20 scientific articles and a monograph
on venture capital financing.

Marc Mortureux is the permanent representative of
the Institut Pasteur (censor): a former Ecole Polytech-
nique student and engineer in the Mines Inspecto-
rate, he has both public and private experience. He
began his career as a civil servant, spending ten years
in regional industrial and research management in
Ile-de-France, then at the Ministry of Industry. He
then spent four years as a research and development
manager, before becoming a manager at the Com-
pagnie Générale de Géophysique, a private company
in the oil sector. He then joined the Laboratoire
National de Métrologie et d’Essais (LNE), which he
directed for six years. Marc Mortureux joined
the Institut Pasteur on December 1, 2005 as Deputy
Chief Executive Officer in charge of resources.

l Cellectis l 2006 Corporate Profile l Governance l 23

VISION.
IT’S IN OUR DNA.
Vision: we aim to become the world
leader in genome engineering and the
worldwide reference for rational
genome engineering.
Implementation of a clear and ambitious
strategy.
 MAIN FINANCIAL ITEMS AND
CAPITAL STRUCTURE ON DECEMBER 31 2006

Assets
Amounts expressed in euros

ASSETS 31 December 2006 31 December 2005 31 December 2004

Amortis. &
Gross Net Net Net
provisions

Trade marks 66,703 0 66,703 66,703 66,703

Software & software licenses 192,521 175,951 16,570 34,707 43,162
Patents 359,867 31,742 328,125 188,109 102,739
Biological licenses 36,083 36,083 0 0 8,083
Advanced payments and desposits 0 0 0 0 0
Intangible assets 655,174 243,776 411,398 289,519 220,687
Land 0 0 0 0 0
Building 0 0 0 0 0
Technical facility, equipment 2,532,822 1,063,526 1,469,296 1,562,345 1,585,902
General facility 261,567 4,392 257,175 5,383 0
Office equipment & hardware, furniture 252,352 191,641 60,711 87,032 100,770
Ongoing tangible assets 0 0 0 25,150 0
Tangible assets 3,046,741 1,259,559 1,787,181 1,679,909 1,686,673
Investment in equity 0 0 0 0 0
Credits attached to investment in equity 0 0 0 0 0
Other financial assets 68,250 0 68,250 68,250 0
Financial assets 68,250 0 68,250 68,250 0
Total fixed assets 3,770,165 1,503,336 2,266,829 2,037,678 1,907,360

Raw material 0 0 0 117,909 93,635

Work in progress 0 0 0 0 0
Finalized products 0 0 0 0 0
Consumables 155,233 0 155,233 0 0
Contract works 0 0 0 0 0
Goods 0 0 0 0 0
Inventories 155,233 0 155,233 117,909 93,635
Advanced payments on orders 1,640 0 1,640 1,640 1,640
Customers & related accounts 685,296 0 685,296 1,372,754 387,644
Other receivables 2,981,559 0 2,981,559 2,079,809 1,401,434
Receivables 3,666,855 0 3,666,855 3,452,562 1,789,079
Financial instruments 287,188 0 287,188 0 0
Cash & cash equivalents 4,684,198 0 4,684,198 7,650,102 1,936,355
Miscellaneous 4,971,387 0 4,971,387 7,650,102 1,936,355
Total current assets 8,795,116 0 8,795,116 11,222,213 3,820,709
Prepaid charges 68,775 0 68,775 91,340 35,196
Unrealized exchange loss 95 0 95 49 0
Adjustment accounts 68,870 0 68,870 91,389 35,196
TOTAL ASSETS 12,634,151 1,503,336 11,130,815 13,351,281 5,763,265

l Cellectis l 2006 Corporate Profile l Main financial items l 25

 Liabilities

Amounts expressed in euros

LIABILITIES 31 December 2006 31 December 2005 31 December 2004
Share Capital 253,834 126,917 126,913
Share Premium 11,587,719 11,745,954 11,745,577
Legal reserves 0 0 0
Regulated reserves 57,791 0 0
Other reserves 0 0 0
Retained earnings (9,161,172) (8,389,194) (5,790,826)
Net loss (3,395,858) (771,979) (2,598,367)
Equity (657,686) 2,711,698 3,483,297
Income from the issuance of other securities 5,689,828 5,633,908 0
Other equity 927,286 762,898 547,200
Other equity 6,617,115 6,396,806 547,200
Provisions for liabilities 68,636 40,425 0
Provisions for charges 0 0 3,300
Prov. Liabilities & Charges 68,636 40,425 3,300
Borrowings 0 0 0
Financial loans & debts 595 595 1,301
Suppliers debts & related accounts 4,372,743 3,405,503 960,060
Tax & social debts 518,562 599,140 408,999
Liabilities on fixed assets 39,706 41,591 354,104
Other liabilities 30,000 0 0
Liabilities 4,961,606 4,046,829 1,724,464
Prepaid Income 141,130 155,521 4,970
Unrealized exchange gain 15 1 34
Miscellaneous 141,145 155,522 5,004
Total Liabilities 11,130,815 13,351,281 5,763,265

l Cellectis l 2006 Corporate Profile l Main financial items l 26

 Profit & Loss account

Amounts expressed in euros 2006 2005 2004

Sales & Licensing revenues 0 0 0
Services 1,188,478 5,904,915 699,380
Miscellaneous 0 0 0
Sales 1,188,478 5,904,915 699,380

Subsidies 1,290,790 242,828 209,031

Provision recovery 3,223 3,300 169,390
Other revenues 238 17 259
Operating revenue (Subtotal I) 2,482,729 6,151,060 1,078,060

Purchase of goods 0 0 0
Inventories deviation 0 0 0
Puchase of raw material 614,294 582,654 533,275
Raw material inventories deviation (37,324) (24,274) (70,132)
Other external expenses 2,356,070 1,673,204 1,158,835
Tax 197,128 103,512 30,742
Employee benefit & compensation 1,763,736 1,695,739 1,444,034
Social charges 409,106 422,551 443,267
Depreciation
on fixed assets 405,549 394,862 344,026
on current assets 0 0 0
for liabilities and charges 28,165 40,376 2,175
Other expenses 463,385 2,508,327 401,578
Total operating expenses (Subtotal II) 6,200,109 7,396,952 4,287,800
R.1. Operating income (I-II) (3,717,379) (1,245,891) (3,209,740)

Other interests & related revenues 174,885 57,061 72,748

Provision recovery 49 0 23,146
Positive exchange deviation 487 2,895 2,145
Net revenues on financial instruments 0 0 0
Total financial revenues (Subtotal III) 175,420 59,956 98,039

Financial depreciation 95 49 0
Interests & related charges 63,658 38,383 1,618
Negative exchange deviation 2,998 520 982
Total financial expenses (Subtotal IV) 66,751 38,953 2,600
R.2. Financial income (III-IV) 108,669 21,003 95,438

R.3. Loss before tax (R.1+R.2) (3,608,710) (1,224,888) (3,114,301)

Exceptional revenue on operations 0 0 0

Exceptional revenues on equity 0 1,095 0
Provision recovery 0 0 0
Total exceptional revenues (Subtotal V) 0 1,095 0

Exceptional charges on operations 0 0 17,062

Exceptional charges on equity 0 1,059 0
Exceptional charges on depreciation 0 0 0
Total exceptional charges (Subtotal VI) 0 1,059 17,062
R.4. Exceptional income (V-VI) 0 36 (17,062)

Research tax credit (VII) (212,852) (452,873) (532,996)

Net loss (R.5+VII) (3,395,858) (771,979) (2,598,367)

l Cellectis l 2006 Corporate Profile l Main financial items l 27

 Capital structure in 2006

Odyssee
Venture
8%
LCF Founders,
Rothschild Personnel &
8% Managers
25%

AGF Private
Equity
15%

Institut
Pasteur
7%

Kaminvest
16%
BankInvest
21%

l Cellectis l 2006 Corporate Profile l Main financial items l 28

 Cash flow table

Amounts expressed in euros 2006

Cash and cash equivalents 7,650,102

Short term financial debts
Net opening cash position 7,650,102

Operations
Net Loss (3,395,858)
Depreciation & provision deviation 433,760
Intangible depreciation deviation 405,549
Tangible depreciation deviation 28,165
Financial depreciation deviation 95
Subsidies
Gain / Loss on assets assignment
Changes in working capital 671,299
Net cash generated from / (used in) operating activities (2,290,799)

Investment
Intangible investment deviation (155,500)
Tangible investment deviation (479,200)
Financial investment deviation
Net cash used in investing activities (634,700)

Equity
Capital increase
Share premium
Bonds to be reimbursed in shares 82,394
Financial debts / Refundable advances 200,000
Loans & financial debts repayment (35,611)
Net cash generated from financing activities 246,783
Net increase / (decrease) in cash & cash equivalents (2,678,716)

Cash & cash equivalents at the end of the year 4,971,386

l Cellectis l 2006 Corporate Profile l Main financial items l 29

© Cellectis SA, 2007
Photos: Cellectis SA and Cédric Porchez (portraits)
Printed by Bowne International, Paris

Cellectis SA, 102 route de Noisy

93235 Romainville Cedex, France
Phone +33 1 41 83 99 00, Fax +33 1 41 83 99 03
investors@cellectis.com

www.cellectis.com
www.cellectis.com