Cellectis — Earnings Release 2013

Sep 26, 2013

PRESS RELEASE

Cellectis announces first-half 2013 financial results Continuing reorganization around three business lines Major therapeutic advances exemplifying the Group's unique expertise

Paris, September 26, 2013 - Cellectis (Alternext: ALCLS), the global genome engineering specialist, today announced the publication of its consolidated financial statements for the six-month period ended June 30, 2013, approved by the Board of Directors at its meeting held on September 23.

First-half 2013 financial results

These results feature:

• − a slight drop in revenue compared to the first six months of 2012;
• − a one-time increase in expenses, mainly due to patent defense costs, which were particularly high during the period, as well as the launch of the Scéil™ offer;
• − an improved use of cash made possible by a reduction in working capital requirement.
• Total operating revenue was €6.9m
• Operating loss came to €16.5m
• As of June 30, 2013, the Group's net cash was €9.5m
• Equity amounted to €43.2 million

Key highlights of the first nine months of 2013

• Cellectis continued to reorganize its activities around three business lines:
• − Tools & Services, specializing in research and production
• − Plants, which develops agronomic traits for proprietary purposes and partnerships
• − Therapeutics, focusing in particular on adoptive immunotherapies (leukemia) and regenerative medicine (diabetes)
• Tools & Services launched a series of new offerings:
• − the CanCELL range of cell lines to meet the needs of the oncology research community and facilitate the discovery of new drugs;
• − the VizuCELL range of cell lines for cellular imaging;
• − and, just a few days ago, the Compact TALEN™ range of next-generation TAL effector nucleases for efficient transfection and genome editing in sensitive cells.
• Plants made breakthroughs including genetically engineering specific species producing oils with a high added value.
• Therapeutics reached a key milestone for one of its flagship products, UCART19, by establishing in-vivo proof of concept for the product's efficacy in treating leukemia.
• The Group also consolidated its intellectual property, obtaining three new patents from the US Patent and Trademark Office (USPTO) for TAL effector nucleases.

• The last key highlight of the period was the launch of Scéil™, which leverages the Group's skills and expertise to offer a cell banking service whereby individuals can store their genetic material in the form of induced pluripotent stem (iPS) cell lines.

Outlook

Cellectis anticipates that its use of cash, which was high in the first half of 2013, will decline very significantly by the end of the year.

Nonetheless, in order to ensure adequate financing to meet the Group's needs over the coming months, Cellectis expects to improve its cash flow from operations (sales growth, lower expenses and is considering disposing of some non-strategic patents or other assets, and/or raising capital, potentially via the contingent equity line with Kepler Capital Markets.

"Our promising results in genome engineering and adoptive immunotherapy underscore our unique expertise in therapeutics," said André Choulika, Chairman and CEO of Cellectis. "In order to take advantage of the biopharmaceutical industry's strong potential, particularly in oncology, we have accelerated the development of our Therapeutics division."

About Cellectis

Founded in France in 1999, the Cellectis Group bases its work on highly specific DNA engineering technologies. Its application sectors are human health, agriculture and bio-energies. Cellectis was co-founded by André Choulika, its Chairman and CEO, and is now one of the world's top companies in the field of genome engineering, with revenue of \$27 million in 2012. Leading the field of pluripotent stem cells, Cellectis has developed expertise in drug discovery, toxicity testing, and regenerative medicine. Cellectis has a solid background in the large-scale handling of stem cells up until their maturation and differentiation into functional cell types. We employ a workforce of 230 people at 5 sites worldwide: New Brighton (Minnesota) & Cambridge (Massachusetts) in the United States, Gothenburg in Sweden, and Paris & Évry in France.

The Group has signed more than 100 industry agreements with pharmaceutical, agrochemical, and biotechnology companies. Our clients and partners include University College London (UCL), the National Institutes of Health (NIH), Novo Nordisk, the Center for iPS Cell Research and Application (CiRA) of Kyoto University, AFM, Novartis, BASF, Bayer, and Limagrain.

Since 2007, Cellectis has been listed on the NYSE Euronext Alternext market (code: ALCLS) in Paris.

For more information, visit our website: www.cellectis.com

Disclaimer

This press release and the information contained herein do not constitute an offer to sell or subscribe, or a solicitation of an offer to buy or subscribe for shares in Cellectis in any country. This press release contains forward-looking statements that relate to the Company's objectives based on the current expectations and assumptions of the Company's management only and involve unforeseeable risk and uncertainties that could cause the Company to fail to achieve the objectives expressed by the forward-looking statements.

For further information, please contact:

Philippe Valachs Cyril Combe Company Secretary / Marie-Anne Garigue media@cellectis.com cellectis@calyptus.net

Cellectis Calyptus

Tel: +33 (0)1 81 69 16 00 Tel: +33 (0)1 53 65 68 68

		CONDENSED STATEMENT OF COMPREHENSIVE INCOME
--	--	---------------------------------------------	--

(In thousands of euros)	June 30, 2013	June 30, 2012
Sales	2,809	3,068
Other operating revenue	4,100	4,420
Total operating revenue	6,909	7,488
Cost of sales	(960)	(482)
Gross profit	5,949	7,006
Research and development costs	(11,068)	(10, 567)
Selling, general and administrative expenses	(12, 455)	(7, 972)
Other operating income	1,050	95
Other operating expenses	$\left(1\right)$	(290)
Operating profit (loss)	(16, 526)	(11,729)
Financial income (expense)	98	(1,029)
Corporate income tax	(1, 391)	1,246
Net profit (loss)	(17, 818)	(11,512)
Attributable to equity holders of the parent	(17,533)	(11,305)
Attributable to non-controlling interests	(285)	(206)
Foreign currency translation adjustment	(681)	407
Comprehensive profit (loss) for the period	(18, 500)	(11, 104)
Attributable to equity holders of the parent	(18,215)	(10, 898)
Attributable to non-controlling interests	(285)	(206)

CONDENSED STATEMENT OF FINANCIAL POSITION

ASSETS (in thousands of euros)	June 30, 2013	December 31, 2012
Intangible assets	37,571	37,821
Property, plant and equipment	5,063	5,484
Financial assets	1,413	1,422
Deferred tax assets	2,009	3,392
Non-current assets	46,057	48,119
Inventones	379	707
Operating receivables	13,918	16,400
Cash and cash equivalents	9,543	21,808
Current assets	23,839	38,916
TOTAL ASSETS	69,895	87,036

EQUITY AND LIABILITIES (in thousands of euros)	June 30, 2013	December 31, 2012
Share capital and share premium account	131,987	131,984
Reserves	(73,032)	(50, 449)
Net profit (loss), Group share	(17, 533)	(21, 856)
Equity attributable to equity holders of the parent	41,421	59,680
Equity attributable to non-controlling interests	1,801	2,086
Total equity	43,222	61,766
Non-current liabilities	3.933	3,828
Short-term debt	972	988
Operating payables	21,769	20,452
Current liabilities	22,740	21,441
TOTAL EQUITY AND LIABILITIES	69,895	87,036

CONDENSED STATEMENT OF CASH FLOWS

(In thousands of euros)	June 30, 2013	June 30, 2012
Net profit (loss) for the period	(17, 818)	(11,512)
Adjustment for non-cash transactions	3,423	1,488
Operating cash flow before change in working capital	(14, 395)	(10, 023)
Change in working capital	4,039	(6,175)
Interest received / (paid)	197	500
Net cash from (used in) operating activities	(10, 158)	(15,699)
$\text{Cash payments in respect of capitalized development expenses, net of CIR*}$	(1, 569)	(1,648)
Purchases of other intangible assets	(6)	(18)
Purchases of property, plant and equipment	(386)	(289)
Purchases of other non-current assets	(15)	(651)
Net cash from (used in) investment activities	(1,977)	(2,605)
Capital increase		2,704
Repayable advances	98	763
Other transactions	(202)	377
Net cash from (used in) financing activities	(101)	3,844
Effect of foreign exchange rate changes		(122)
Net change in cash and cash equivalents	(12, 237)	(14, 582)
Net cash at end of period	9,543	27,836