2015 Corporate Overview

"FOR NEARLY 50 YEARS WE HAVE ACHIEVED GREAT SUCCESS. WE BELIEVE OUR MARKET BREADTH, DIVERSITY OF PRODUCT, STRONG BALANCE SHEET, AND NATIONAL BRAND PREPARE US FOR EVEN GREATER SUCCESS IN THE NEXT 50 YEARS."

LUXURY HOME AND COMMUNITY DEVELOPER

National presence in the luxury market: 50 markets in 19 states and Washington, DC

Average delivered home price of $755,000; Average price in backlog of $862,000

High-volume home production with 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, country club, and marina living
  • Urban and suburban rental communities

INDUSTRY-LEADING BRANDS

America's Luxury Home Builder ®

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

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

RECENT AWARDS:

  • National Builder of the Year,BUILDER magazine
  • Two-Time Builder of the Year, Professional Builder magazine
  • National Housing Quality Award, National Association of Home Builders (NAHB®)
  • America's Best Builder, NAHB®
  • World's Most Admired Companies, Fortune magazine
  • Most Honored Home Building Company, Institutional Investor magazine
  • America's Most Trusted Home Builder,™ † Lifestory Research

FINANCIAL AND MANAGEMENT STRENGTH

Founded in 1967; NYSE (TOL) since 1986

Delivered approximately 80,000 homes ($49 billion) since FY 2000

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

Liquidity of $1.5 billion: $929 million in cash and marketable securities and $566 million available under our 15-bank, 5-year $1.035 billion credit facility

$500 million, 5-year term loan

Raised over $4.5 billion in corporate and joint venture financing since beginning of FY 2013

Net debt-to-capital ratio‡ of 39.5%

Laddered long-term public and bank debt maturities with an average of 4.9 years remaining

Seasoned management: average 20 year tenure

Distressed real estate/loan portfolio expertise and land banking/joint venture financing services via Gibraltar Capital and Asset Management

DIVERSIFIED LAND AND BUILDING PROGRAM

Controls 44,300 home sites

Land acquisition, approval, and development skills

Selling from 288 communities at FYE 2015

Buyers averaged $134,000 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 towers 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 7,500 units built, in construction, or planned in a pipeline stretching from Massachusetts to Atlanta

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

*Information for and as of FYE October 31, 2015, unless otherwise noted. †Toll 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. ‡Net debt-to-capital ratio is calculated as total debt minus mortgage warehouse loans minus cash and marketable securities, divided by total debt minus mortgage warehouse loans minus cash and marketable securities plus stockholders' equity.