2016 Corporate Overview

Fortune magazine’s 2016 Survey of the World’s Most Admired Companies ranked Toll Brothers #6 globally for the Quality of our Products and Services.

LUXURY HOME AND COMMUNITY DEVELOPER

National presence in the luxury market: 50 markets in 20 states and Washington, DC

Average delivered home price of $848,000; Average price in backlog of $850,000

High-volume home production/ extensively personalized homes

VARIETY OF COMMUNITY TYPES:

  • Luxury move-up homes
  • Elegant empty-nester, active-adult, and second homes
  • Urban low-, mid-, and high-rise condos
  • Large multiproduct, multigenerational master planned communities
  • Suburban high-density communities
  • Resort-style golf and country club
  • Urban and suburban rental communities
  • T | Select: the elegance of a high-end Toll Brothers home with fewer structural options, quicker delivery, and a slightly lower price

INDUSTRY-LEADING BRANDS

America's Luxury Home Builder ®

Toll Brothers Active Living: luxury homes for active adults including 55+ buyers

Toll Brothers City Living®: luxury mid- and high-rise urban for-sale communities

Toll Brothers Apartment Living and Toll Brothers Campus Living: luxury urban, suburban, and student for-rent communities

RECENT AWARDS:

  • National Builder of the Year,BUILDER magazine
  • Two-Time Builder of the Year, Professional Builder magazine
  • World's Most Admired Companies†, Fortune magazine
  • Most Honored Home Building Company, Institutional Investor magazine
  • America's Most Trusted Home Builder,™ ŧ Lifestory Research

FINANCIAL AND MANAGEMENT STRENGTH

Founded in 1967; NYSE (TOL) since 1986

Delivered approximately 86,000 homes ($55 billion) since FY 2000

Strong corporate credit ratings: Standard & Poor's (BB+), Moody's (Ba1), and Fitch (BBB-)

Liquidity of $1.6 billion: $634 million in cash and $962 million available under our 20-bank, 5-year $1.295 billion credit facility

$500 million, 9-bank, 5-year term loan

Raised over $6.4 billion in corporate and joint venture financing since beginning of FY 2013

Debt-to-capital ratio of 47%
Net debt-to-capital ratio§ of 41%

Laddered long-term public and bank debt maturities with an average of 4.5 years remaining

Seasoned management: average 19 year tenure

Land banking, lending, and joint venture nancing services via Gibraltar Capital and Asset Management

DIVERSIFIED LAND AND BUILDING PROGRAM

Controls 48,800 home sites

Land acquisition, approval, and development skills

Selling from 310 communities at FYE 2016

Buyers averaged $155,000 in upgrades and site premiums, 21% above base house price

Predesign and prebudget custom features via Toll Architecture and Toll Integrated Systems

Toll Brothers City Living: 45 projects totaling 5,700 units built, in construction, or planned in New York City, northern New Jersey, Philadelphia, and metro Washington, DC

Toll Brothers Apartment Living and Toll Brothers Campus Living: own or control a portfolio of approximately 10,000 units built, in construction, or planned across the nation

Ancillary businesses: mortgage, land development/banking/sales, title, golf course development/management, landscape, home technology/security, architecture, engineering, and house component manufacturing

*information for and as of FYE October 31, 2016, unless otherwise noted. †See footnote on page 80. ŧToll Brothers received the highest numerical score in the United States in the proprietary Lifestory Research 2015 America’s Most Trusted Home Builder™ study. Study based on 43,200 new home shoppers in 27 markets. Proprietary study results are based on experiences and perceptions of consumers surveyed between January and December 2014. §See “Reconciliation of Non-GAAP Measures” on page 78 for more information on the calculation of the Company’s net debt-to-capital ratio.