CORPORATE PROFILE March 4, 2016

TABLE OF CONTENTS & CONTACT INFORMATION Slide #1: Slide #2: Slide #3: Slide #4: Slide #5: Slide #6: Slide #7: Slide #8: Slide #9: Slide #10: Slide #11: Slide #12: Slide #13: Slide #14: Slide #15: Slide #16: Slide #17: Slide #18: Slide #19:

Logo Table of Contents & Contact Information Statement of Forward-Looking Information Overview Brand Name Fortune’s Most Admired Fortune’s Quality of Products/Services Toll Brothers Results Current U.S. Housing Market Key Metrics Important Trends Toll’s Response Nationwide Footprint Lots, Revenue, Backlog by Region Only National HB Focused on Luxury Market Toll Home Prices Widest Variety of Homes Product Diversification Move-Up

Slide #20: Slide #21: Slide #22: Slide #23: Slide #24: Slide #25: Slide #26: Slide #27: Slide #28: Slide #29: Slide #30: Slide #31: Slide #32: Slide #33: Slide #34: Slide #35: Slide #36: Slide #37:

Empty Nester Active Adult Master Planned Second Home Urban Redevelopment Suburban High Density Urban & Suburban Rental Urban Infill City Living Overview Current City Living Pipeline

Future City Living Pipeline Focus on land Building a Solid Land Position Number of Selling Communities School Quality Index High-Volume Technology Toll Integrated Systems TBI Mortgage

Slide #38: Slide #39: Slide #40: Slide #41: Slide #42: Slide #43: Slide #44: Slide #45: Slide #46: Slide #47: Slide #48: Slide #49: Slide #50: Slide #51: Slide #52: Slide #53: Slide #54: Slide #55: Slide #56:

Diversifying Income Streams Other Income & JV Income Toll Apartment & Campus Living Current Apartment Living Pipeline Future Apartment Living Pipeline

Active Adult overview Toll Acquisitions Superior Capital Market Access Maintain Conservative Debt Maturities Capitalization Net-Debt-to-Capital Toll Brothers Revenue Cash & Marketable U.S. Treasury Securities Unemployment Rates U.S. Births $100,000 Income Households Basic Demographics Housing Starts vs. Household Growth Why Toll

Investor Relations Team MARTIN CONNOR

CFO

Email: [email protected] Phone: 215-938-6934

2

FREDERICK COOPER 

SVP, Finance, International Development & Investor Relations Email: [email protected] Phone: 215-938-8312

GREGG ZIEGLER

RUSSELL ROCHESTIE

Email: [email protected] Phone: 215-938-8365

Email: [email protected] Phone: 215-938-5227

SVP, Treasurer

VP, Finance

STATEMENT OF FORWARD‐LOOKING INFORMATION

Information presented herein for the first quarter ended January 31, 2016 is subject to finalization of the Company's regulatory filings, related financial and accounting reporting procedures and external auditor procedures. Certain information included in this presentation is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, information related to: anticipated operating results; anticipated financial performance, resources and condition; selling communities; home deliveries; average home prices; consumer demand and confidence; contract pricing; business and investment opportunities; and market and industry trends. Such forward-looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed herein and in other Company reports, SEC filings, statements and presentations. These risks and uncertainties include, among others: local, regional, national and international economic conditions; fluctuating consumer demand and confidence; interest and unemployment rates; changes in sales conditions, including home prices, in the markets where we build homes; conditions in our newly entered markets and newly acquired operations; the competitive environment in which we operate; the availability and cost of land for future growth; conditions that could result in inventory write-downs or write-downs associated with investments in unconsolidated entities;

3

the ability to recover our deferred tax assets; the availability of capital; uncertainties in the capital and securities markets; liquidity in the credit markets; changes in tax laws and their interpretation; effects of governmental legislation and regulation; the outcome of various legal proceedings; the availability of adequate insurance at reasonable cost; the impact of construction defect, product liability and home warranty claims, including the adequacy of self-insurance accruals, and the applicability and sufficiency of our insurance coverage; the ability of customers to obtain financing for the purchase of homes; the ability of home buyers to sell their existing homes; the ability of the participants in various joint ventures to honor their commitments; the availability and cost of labor and building and construction materials; the cost of raw materials; construction delays; domestic and international political events; and weather conditions. For a more detailed discussion of these factors, see the information under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent annual report on Form 10-K and our subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Any or all of the forward-looking statements included in this presentation are not guarantees of future performance and may turn out to be inaccurate. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

OVERVIEW

#1 LUXURY BRAND

GEOGRAPHIC & PRODUCT DIVERSITY SOLID MANAGEMENT & FINANCIAL BASE 4

    

Nation’s leading luxury home builder Nationally recognized, award-winning brand Founded in 1967 and listed on NYSE since 1986 Average Q1 FY 2016 delivered home price of $873,500 Average price is double that of most other public homebuilders

    

Builds in 19 states and approximately 50 markets Balanced footprint across the East, West and South Strong land position – Control 43,800 lots Expanding urban presence in NYC, Metro DC & Philadelphia Serves urban and suburban, luxury move-up, empty nester, & active-adult buyers as well as renters in select markets

    

Strong balance sheet and credit ratings Approximately $1.3B of available liquidity at Q1 end FY 2016 No corporate debt maturities until September 2017 Executive & director beneficial ownership of approx. 10.5%* Average senior management tenure of 20 years * At January 20, 2016

THE #1 BRAND IN LUXURY HOME BUILDING

5

FORTUNE’S MOST ADMIRED  HOME BUILDING COMPANY 2016 Rank

6

Overall Score

1

Toll Brothers

6.93

2

Lennar

6.81

3

D.R. Horton

6.05

4

CalAtlantic Group

5.99

5

PulteGroup

5.85

6

NVR

5.82

7

KB Home

5.07

8

Taylor Morrison

4.73

9

Hovnanian Enterprises

2.96

7

TOLL BROTHERS RESULTS

3 Months Ended January 31, ($ in millions), except Avg Prices

Fiscal Year Ended October 31,

2016

2015

% Change

2015

2014

% Change

1,250

1,063

18%

5,910

5,271

12%

$1,087

$873

24%

$4,956

$3,897

27%

$870

$822

6%

$838

$739

13%

4,251

3,651

16%

4,064

3,679

10%

$3,663

$2,740

34%

$3,504

$2,720

29%

$862

$750

15%

$862

$739

17%

Units

1,063

1,091

3%

5,525

5,397

2%

Dollars

$929

$854

9%

$4,171

$3,912

7%

Avg price ($ in 000s)

$874

$782

12%

$755

$725

4%

Contracts Units Dollars Avg price ($ in 000s)

Backlog Units Dollars Avg price ($ in 000s)

Deliveries

8

CURRENT U.S. HOUSING MARKET MARKET IS GROWING

 Market continues on a pace of slow but steady growth  Increasing volumes of new and existing home sales but still below longterm averages

PENT-UP DEMAND

 Continued population growth through recession and recovery  Household formations are increasing  Seven years of pent-up demand releasing

PERSONAL BALANCE SHEETS IMPROVING

   

CONSTRAINED SUPPLY

 Fewer land entitlements processed for several years  Inventory/lot shortages in some markets  Constrained capital access favors largest builders

9

Improving job growth with little wage growth Mortgage rates still low. Affordability is solid Purchase decision is a confidence-sensitive issue Rising home prices improve home equity of our potential buyers

KEY METRICS IMPROVING FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

FY 2015

Q1 2016

($117,187)

($29,366)

$112,942

$267,697

$504,582

$535,562

$116,817

EBITDA (000s)

$9,853

$74,058

$226,049

$408,145

$671,088

$705,909

$154,842

Diluted EPS

($0.02)

$0.24

$2.91

$1.01

$1.91

$1.97

$0.40

$1,236,927

$1,139,912

$1,217,892

$825,480

$598,341

$928,994

$336,244

195

215

224

232

263

288

291

Owned & Optioned Lots

34,852

37,497

40,350

48,628

47,167

44,253

43,819

Gross Margin*

20.7%

23.3%

24.0%

24.6%

25.3%

25.9%

26.9%

Operating Margin

-9.7%

-3.1%

3.4%

7.5%

10.2%

10.7%

10.2%

$51,783

$22,209

$49,512

$66,630

$107,333

$88,692

$22,358

Pre-tax Income (000s)

Cash and Marketable Securities (000s) Selling Community Count

JV & Other Income (000s)

10

* Excluding interest and write-downs

IMPORTANT TRENDS

DEMOGRAPHIC TRENDS

 Maturing Baby Boomer population  Millennials deferring family formations, but desire for homeownership matches previous generations  An increase in renting households  Growth in international buyers

REGIONAL GROWTH

 Job growth in Texas  Strengthening economy and population growth in the West and Northwest  Continued focus on our affluent core markets from Washington DC to Boston

URBAN GROWTH

 National trend towards urbanization  Success in NYC, Philadelphia, and Metro Washington DC

11

WELL‐POSITIONED FOR IMPORTANT TRENDS

DEMOGRAPHIC TRENDS

ExpandingActive activeAdult adultto tonew newmarkets markets  Expanding ExpandingToll’s our rental business  Expanding rental business Designingmore morehomes houses attractive  Designing attractive to to international/multigenerational international buyers and hiringbuyers  Increasing oursales marketing and service multilingual and mortgage capabilities personnel for international buyers

REGIONAL GROWTH

ExpandedininTexas California and Nevada  Expanded ExpandedininCalifornia Texas and Nevada  Expanded  Entered EnteredSeattle Seattle  Maintained in affluent core Maintaineddominance focus on core market of markets fromDC Washington Washington to BostonDC to Boston

URBAN GROWTH

    

12

Growing City Living in NYC Entered the Metro Washington DC market Exploring additional cities Building urban rentals Seeking urban infill/re-use opportunities

NATIONWIDE FOOTPRINT POSITIONS US FOR GROWTH  19 STATES, 50 MARKETS Seattle Minneapolis       

Detroit Chicago        Sacramento San Francisco

Philadelphia

Fort Collins

Reno

Baltimore

Denver

Los Angeles

Palm Springs Tucson

Raleigh

Charlotte

Phoenix

San Diego

Wilmington

Washington DC

Las Vegas

San Jose

Boston Hartford New York Princeton

Dallas

REGIONS /

Selling Communities North

60

Mid-Atlantic

66

South

65

West

62

California

31

City Living

13

Austin

Jacksonville

Houston

Orlando Ft . Myers Naples

7 Total: 291 * As of January 31, 2016

Jupiter West Palm Beach Boca Raton Miami

GEOGRAPHICALLY DIVERSIFIED PORTFOLIO

FY 2015 Revenue ($)

FYE 2015 Lots Controlled 4%

8%

6%

17%

19%

15%

FYE 2015 Backlog ($) 18%

18%

26% 15%

20%

18% 25%

16% 16%

19%

14

21%

North

Mid-Atlantic

South

West

California

City Living

19%

ONLY NATIONAL HOMEBUILDER  FOCUSED ON LUXURY MARKET Toll’s main competitors are small private builders, not the larger public builders. $1,000 $900

$874

Average Delivered Home Price* ($000)

$800

$755

$700 $600

$531 $464

$500 $400 $300

$286

$313

$314

$326

$329

M/I

Beazer

Lennar

Pulte

$355

$365

$369

$377

$382

KB Home

Meritage

NVR

MDC

Hovnanian

$478

$200 $100 $0

15

DR Horton

* Updated based on most recent reported fiscal-year-end deliveries.

Taylor CalAtlantic TRI Pointe Toll Morrison Brothers FY 2015

Toll Brothers Q1 FY 2016

TOLL HOME PRICES Q1 FY 2016*

(by unit deliveries)

57%

58% Under $750,000

Under $300,000 $300,000 to $749,999 $750,000 to $999,999 20%

1% 22%

16

*Numbers may not add due to rounding in units

Over $1,000,000

THE WIDEST VARIETY OF HOMES IN THE INDUSTRY •

Move-up

•

Empty Nester

•

Active Adult

•

Second Home

•

Urban-Infill

•

Urban Redevelopment

•

Golf Course & Country Club

•

High-Rise

•

Suburban High Density

•

Urban & Suburban Rental 17

PRODUCT DIVERSIFICATION

(by unit deliveries)

FY 2000

FY 2015

10%

4%

1% 17%

16%

64%

89% 18

Single Family

Attached

Age Qualified

City Living

M OV E ‐ U P

19

Liseter, Newtown Square, PA

E M P T Y  N E S T E R

20

Toll Brothers at Inspirada, Henderson, NV

ACTIVE ADULT

21

Regency at Damonte Ranch, Revo, NV

MASTER PLANNED

22

Gale Ranch, San Ramon, CA

SECOND HOME

23

Toll Brothers at Hidden Canyon, Lake Forest, CA

URBAN REDEVELOPMENT

24

Pierhouse at Brooklyn Bridge Park, Brooklyn, NY

SUBURBAN HIGH DENSITY

25

The Morgan at Provost Square, Jersey City, NJ

URBAN & SUBURBAN RENTAL

26

URBAN INFILL

27

TOLL BROTHERS CITY LIVING

SUCCESSFUL URBAN TRACK RECORD

 Formed in 2003 to leverage luxury brand  Follows demographic trends of Millennials, more families and Boomers living in cities  Communities in NYC, North Jersey’s Gold Coast, Philadelphia & Urban Metro DC

BROAD EXPERIENCE

 Completed construction on 29 buildings totaling over 3,800 units*  Selling from 9 buildings, totaling 918 units*  Future pipeline consists of 9 buildings, totaling 1,180 units*  Exploring Boston, San Francisco & Miami

DISTINCTIVE PRODUCT

 Focus on buildings in the 50 – 200 unit range located in upscale neighborhoods  Develop differentiated products based on granular analysis of each neighborhood  Offer innovative architecture, elegant finishes, world-class amenities and service

28

* As of January 31, 2016

CURRENT CITY LIVING PIPELINE* Estimated Timing Estimated Remaining Revenue††

Construction Start

Open for Sale

1st Settlement

4

$8 - $10 million

Q1 2012

Q2 2013

Q2 2014

7

28

$121 - $148 million

Q3 2012

Q4 2014

Q4 2015

49

2

4

$5 - $6 million

Q3 2013

Q4 2013

Q4 2015

106

0

77

29

$414 - $506 million

Q3 2013

Q2 2014

Q3 2016

9

3

2

4

$85 - $104 million

Q3 2013

Q3 2014

Q4 2015

The Sutton (Manhattan) †

113

0

52

61

$241 - $294 million

Q3 2014

Q1 2015

Q4 2016

Hampden Row (Bethesda)

55

0

16

39

$68 - $83 million

Q1 2015

Q1 2015

Q1 2017

55 W 17th Street (Manhattan)

53

0

15

38

$168 - $205 million

Q1 2015

Q4 2015

Q1 2017

1400 Hudson (Hoboken)

236

0

77

159

$209 - $255 million

Q1 2015

Q4 2015

Q3 2017

Total

918

300

252

366

$1.32 - $1.61 billion

Sold Units Units Left to Sell

Total Units

Settled Units

(Not Settled)

1100 Maxwell Place (Hoboken)

210

202

4

400 Park Ave South (Manhattan)

81

46

410 at Society Hill (Phila)

55

Pierhouse at BBP (Brooklyn)** 1110 Park Avenue (Manhattan)

29

* Projects open for sale as of January 31, 2016 ** Will be delivered in joint venture; data is for condo units only. Toll is a 50% Partner in the venture. † Will be delivered in joint venture. Toll is a 25% Partner in the venture. †† Represents the value of the Sold (Not Settled) Units plus the Units Left to Sell

FUTURE CITY LIVING PIPELINE* Estimated Timing Total Units

Estimated Revenue

Construction Start

Open for Sale

1st Settlement

100 Barrow Street (Manhattan)

33

$143 - $174 million

Q2 2015

Q3 2016

Q4 2017

121 East 22nd Street (Manhattan)**

133

$454 - $555 million

Q2 2016

Q4 2016

Q4 2018

Provost Square II (Jersey City)

242

$167 - $204 million

Q2 2016

Q3 2017

Q3 2018

91 Leonard (Manhattan)**

112

$271 - $332 million

Q3 2016

Q2 2017

Q4 2018

1451 Hudson Street (Hoboken)

99

$91 - $112 million

Q4 2016

Q2 2017

Q4 2018

8008 Wisconsin Avenue (Bethesda)

100

$90 - $110 million

Q2 2017

Q4 2017

Q4 2019

1000 Maxwell Lane (Hoboken)

76

$68 - $83 million

Q4 2017

Q4 2018

Q4 2019

82 King Street (Manhattan)

126

$335 - $410 million

Q2 2018

Q2 2019

Q3 2020

Provost Square III (Jersey City)

259

$183 - $224 million

Q3 2018

Q2 2019

Q4 2020

1,180

$1.80 - $2.20 billion

Total

30

*Projects scheduled to open for sale after January 31, 2016 ** Potential JVs

FOCUS ON LAND

ACQUISITION

 Control 43,800 home sites*  Operate in most difficult land approval markets in U.S.  Skilled in land acquisition, approvals, & development across all markets

DEVELOPMENT

 One of U.S.’s largest land developers  In-house engineering company, ESE, manages site design & land improvements  Every ESE plan is designed for approvals, constructability & most importantly, the end use…a luxury home community

CAREFULLY MANAGED INVENTORY

 Protects against potential land shortages in lot-constrained markets  All land deals approved at corporate headquarters by senior management  Most land bought post-approvals

31

* As of January 31, 2016

BUILDING ON A SOLID LAND POSITION 91,207 83,126

Lots Owned and Optioned 73,768

60,189

17,600 Finished Lots at 1/31/16

59,251 48,628 47,167

48,058 39,146

40,844

39,784

33,118

31,917

34,852

37,497

40,350

44,253 43,819 8,180

35,639

2000

2001

2002

2003

2004

2005 Q2 2006 2006

2007

Owned

32

2008

2009

Optioned

Fiscal Year End

2010

2011

2012

2013

2014

2015 Q1 2016

NUMBER OF SELLING COMMUNITIES

300

315 288

273

220 200

146

155

263

230 200

170

At Fiscal Year End

33

215 195

224

232

291

HOMEBUILDER SCHOOL QUALITY INDEX Average School District Rating 10.00 9.00 8.00 7.00

9.06

(0-10 Scale) 8.88

8.40 7.30

6.89

6.00

6.82

6.67

6.33

5.87

5.59

5.47

5.47

5.44 4.75

5.00

4.20

4.00

4.11

3.66

3.00 2.00

1.17

1.00 0.00

34

TOL WCIC TMHC MHO TPH

CAA HOV PHM NVR

LEN

MTH WLH BZH MDC

DHI

Source: Raymond James, “’Back to School, Episode IV’: Our Expanded Land Analysis of Public Homebuilders” U.S. Research, October 20, 2015

CCS

KBH LGIH

CUSTOM HOMES BUILT USING HIGH ‐VOLUME  TECHNOLOGY •

•

•

•

•

Toll’s luxury systems developed over 40 years Buyers choose from hundreds of structural and designer options In FY 2015 the average buyer added approximately $134,000 in options and premiums, consistent with 16 - 20% of base in prior years Provides competitive advantage vs. small builders Toll Architecture systemizes high-volume home production Toll Brothers at Inspirada, Henderson, NV

35

TOLL INTEGRATED SYSTEMS – PANEL & TRUSS PLANT •

•

•

•

•

•

36

Manufactures and distributes wall panels, floor and roof trusses, signature millwork, windows, and doors Operates four plants in suburban Pennsylvania, Virginia, and Indiana Supplied components for approximately 3,000 homes in FY 2015 from Massachusetts to North Carolina Builds more than 150 different homes with multiple elevations and hundreds of options Improves timeline, quality, costs, and reduces waste Reduces dependence on skilled carpenters in times of labor shortage

STRONG BUYER PROFILE/TBI MORTGAGE • •

22% of buyers paid cash Our buyers have strong credit profiles with an average FY 2015 FICO score of 756 on conforming loans and jumbo loans

•

Average LTV of 70% in FY 2015

•

42% of buyers used jumbo mortgages in FY 2015

•

• •

TBI served 57% of Toll buyers using mortgages in FY 2015 Pre-sells loans individually to minimize risk Investors who provide our customers with mortgages have continued to issue new commitments Toll Brothers at Hidden Canyon, Irvine, CA

37

DIVERSIFYING INCOME STREAMS

Suburban Home  Building (For Sale) - 50 markets in 19 states

Land Sales & Development - Lot sales to 3rd parties builders

• Move up

• Shapell (CA)

• Empty nester

• Northgrove at Spring Creek (TX)

• Active Adult • Second home • Master-planned resort style • Suburban high density

38

• Woodson's Reserve (TX) • Travisso (TX)

City Living (Condo for Sale)

Apartment Living (Rental)*

Ancillary  Businesses

- Manhattan, Brooklyn, and Queens, NYC

- Located in Urban and Suburban locations

- Gibraltar Capital and Asset Management

- Hoboken and Jersey City, NJ

- 3 projects (1,728 units) stabilized

- TBI Mortgage

- Metro Washington, DC

- 2 projects (815 units) leasing

- Philadelphia, PA

- 5 projects (1,941 units) under development

- Toll Landscaping

- 10 projects (2,961 units) in the pipeline

- Westminster Title

• Sienna South (TX)

*As of January 31, 2016

- Golf Course Development & Management - Westminster Security

OTHER INCOME AND JOINT VENTURE INCOME

($ Thousands)

Project $105 million to $130 million of pre‐tax income in FY 2016 Other Income

Joint Venture Income

$110,000

$107,333 $88,692

$90,000

$51,783 $50,000

21,119

$66,630

$70,000 $49,512

$34,388

$30,000

67,573

$22,209

$10,000 -$10,000

2009

2010

2011

2012

2013

2014

2015

• In fiscal 2011 and 2009, the Company recognized impairment charges on investments in unconsolidated entities of $40.9 million and $11.3 million, respectively, which are included above. The Company did not recognize any impairment charges on investments in unconsolidated entities in fiscal 2010.

39

TOLL APARTMENT LIVING/CAMPUS LIVING COMPLEMENT FOR-SALE BUSINESS

 Investing in Apartment & Student Housing development to maximize operational synergies  A hedge against For-Sale cyclicality  Building on Toll Brothers brand name and skills  Current pipeline of 4,500 units with land controlled for 3,000 future unit totals approx. 7,500 units*

BROAD EXPERIENCE

 Developed & operate 1,728 units*  Leasing up at 2 communities of 815 units*  1,523 rental units under construction in 4 projects from Massachusetts to Washington DC *  Building 418 Campus Living units (1,493 beds) at University of Maryland in College Park, MD*

STRATEGIC GROWTH

 Control land for 2,961 future apartment & student living units in Northeast/Mid-Atlantic & Dallas*  Expect to invest additional $100 - $200 million  Plan to expand business nationally  Combine premier locations with luxury, for-sale finishes, services and amenities

40

* As of January 31, 2016

CURRENT APARTMENT LIVING PIPELINE*

(Developed in Joint Venture) Estimated Timing

Total

Dev.

Open For

Stab.

Location

Units

Start

Occupancy

Year

Dulles Greene

Herndon, VA

806

1998

1999

2003

Mews at Princeton Junction

Princeton, NJ

635

2003

2005

2008

Parc Riverside (Phase I)

Washington, DC

287

2013

2015

2016

Existing Apartments

3 Total Existing Apartments In Lease-Up

1,728 Location

Parc at Plymouth Meeting

Plymouth Meeting, PA

398

2013

2015

2017

The Morgan at Provost Square

Jersey City, NJ

417

2013

2015

2017

2 Total In Lease-Up In Construction

815 Location

Kensington Place

East Brunswick, NJ

400

2013

2016

2018

Terrapin Row**

College Park, MD

418

2014

2016

2016

Parc Westborough

Westborough, MA

249

2015

2016

2018

Riverworks

Phoenixville, PA

Union Place

Washington, DC

349 525

2015 2016

2016 2018

2018 2020

5 Total Under Development

41

1,941 * As of January 31, 2016 ** Student Housing Project

FUTURE APARTMENT LIVING PIPELINE*

(To Be Developed in Joint Venture) Estimated Timing

Total

Dev.

Open For

Stab.

Future Apartments

Location

Units

Start

Occupancy

Year

Whitehall**

State College, PA

268

2016

2017

2017

Needham

Needham, MA

390

2016

2018

2020

Parc Riverside (Phase II)

Washington, DC

314

2016

2018

2021

Maneely

Princeton, NJ

232

2017

2018

2019

Bartlett Fields

Scituate, MA

234

2017

2018

2020

Bryant

Chantilly, VA

250

2017

2018

2020

Voorhees

Voorhees, NJ

340

2017

2018

2021

Oaklawn

Dallas, TX

275

2017

2019

2020

Belmont

Ashburn, VA

376

2018

2019

2021

Morristown

Morristown, NJ

282

2018

2020

2021

10 Projects

42

2,961 * As of January 31, 2016 ** Student Housing Project

ACTIVE ADULT OVERVIEW

2 DECADES OF EXPERIENCE

 Brand name in Active Adult market  Developed 59 communities and 17,000 Active Adult home sites  Delivered approximately 7,000 Active Adult homes totaling over $3B in revenues

BROAD AND EXPANDING FOOTPRINT

 An established presence in 8 states – CT, IL, MA, NC, NJ, NY, PA, and VA  Expanding footprint in the West, first in CO and NV  Exploring additional markets

STRONG DEMOGRAPHICS

 Baby Boomers are maturing  By 2020 there will be 43 million people between the ages of 55-64*  The average net worth of these families is $800,000**

43 *Source: US Census **Source: Federal Reserve

TOLL HOME BUILDER ACQUISITIONS

Toll Brothers has made eight acquisitions in our history:  Geoffrey H. Edmunds

Scottsdale, Arizona

1995

Coleman Homes

Las Vegas, Nevada

1998

Silverman Homes

Metro Detroit, Michigan

1999

Richard R. Dostie

Jacksonville, Florida

2003

Northern New Jersey, Urban High-Rise

2003

Central Florida

2005

Seattle, Washington

2011

Coastal Northern and Southern California

2014

The Manhattan Building Company Landstar Homes CamWest Development LLC Shapell Homes

44

SUPERIOR CAPITAL MARKET ACCESS SENIOR/CORPORATE CREDIT RATINGS

45

Fitch Inc.

BBB- (Stable)

Standard & Poor’s

BB+ (Stable)

Moody’s

Ba1 (Stable)

MAINTAIN CONSERVATIVE DEBT MATURITIES*

Accessing Capital For Growth

$350

Public Debt (Senior)

No corporate debt maturities until September 2017

Convertible Debt (Senior)** Bank Debt †

$288

$500

$400

$420

$400 $350 $250

$250

FY

2016

2017

2018

2019

2020

2021

2022

$ millions 46

* As of January 31, 2016 ** Convertible notes mature in September 2032. Call right is September 2017 at par † Bank Debt includes our $500 million term loan due in FY 2019

2023

2024

2025

CAPITALIZATION* Toll Brothers, Inc. First Huntingdon Finance Corp.

■ ■ ■ ■ ■ ■ ■ ■ ■

$1.035 BN Revolving Credit Facility Due August 2018† Commitment Citi $100 MM Deutsche Bank $100 MM Mizuho Bank $100 MM PNC $100 MM SunTrust $100 MM Capital One $75 MM US Bank $75 MM Wells Fargo $75 MM Bank of America $50 MM

■

Comerica

■

Fifth Third Bank Regions Bank Sumitomo Mitsui Texas Capital Bank TD Bank

■ ■ ■ ■

$50 MM $50 MM $50 MM $50 MM $35 MM $25 MM $1,035 MM

■ ■ ■ ■ ■ ■ ■ ■ ■ ■

Toll Brothers Finance Corp.

$500 MM Term Loan Due February 2019 Commitment SunTrust $100 MM Sumitomo Mitsui $75 MM US Bank $75 MM Bank of New York $55 MM Capital One $50 MM Wells Fargo $50 MM Beneficial Bank $30 MM Fifth Third Bank $30 MM PNC $25 MM Mega International

Senior Notes Series

Coupon

Principal

September 2017 October 2017 December 2018 November 2019 February 2022 April 2023 January 2024 November 2025

0.500% 8.910% 4.000% 6.750% 5.875% 4.375% 5.625% 4.875% 5.217%

$288  MM $400  MM $350  MM $250  MM $420  MM $400  MM $250  MM $350  MM $2,707 MM

1.62 years 1.71 years 2.92 years 3.75 years 6.05 years 7.21 years 7.96 years 9.80 years 5.15 years

Source Senior Debt (Public) Convertible Debt Bank Debt Total

Coupon 5.777% 0.500% 1.771% 4.585%

Outstanding $2,420 MM $288 MM $608 MM $3,316 MM

Maturity (yrs.) 5.57 years 1.62 years 2.93 years 4.74 years

$10 MM $500 MM

† The Company finished the period ending 1/31/2016 with $926.7 million available under its revolving credit facility.

47

Maturity (yrs.)

* As of January 31, 2016

STRONG BALANCE SHEET PROVIDES  ROOM TO GROW

48.0% 45.8%

Net‐Debt‐To‐Capital** 2000‐2016

46.0%

41.1%

40.7%

41.7% 39.5%

35.3% 32.3%

31.7% 27.4%

26.7% 23.3%

14.8% 13.3%

12.5% 7.0%

At Fiscal Year End * Total assets and debt balances were adjusted to reflect the adoption of Accounting Standards Update No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” on October 31, 2015. See Note 1 in Annual Report on Form 10K “Significant Accounting Policies – Recent Accounting Pronouncements,” for additional information.

48

** 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.

TOLL BROTHERS REVENUE

($ Thousands)

While revenues declined, cash position grew.

$6,115,000

$4,635,000 $3,912,000

$4,171,000

$3,148,000 $2,674,000 $1,755,000

2006

2007

2008

2009

$1,883,000 $1,495,000 $1,476,000

2010

2011

At Fiscal Year End

49

2012

2013

2014

2015

TOLL BROTHERS CASH AND MARKETABLE U.S. TREASURY SECURITIES  ($ Thousands)

During unprecedented time of industry distress Toll grew cash

$1,909,000 $1,633,000

$1,237,000 $1,220,000 $1,146,000 $900,000 $689,000

2005

$633,000

2006

$598,000

2007

2008

2009

2010 At Fiscal Year End

50

$929,000

$825,000

2011

2012

2013

2014

2015

51 Source: U.S. Bureau of Labor Statistics

Jan-16

Jul-15

Jan-15

Jul-14

Jan-14

Jul-13

Jan-13

Jul-12

Jan-12

Jul-11

Jan-11

Jul-10

Jan-10

Jul-09

Jan-09

Jul-08

Jan-08

Jul-07

Jan-07

Jul-06

Jan-06

Jul-05

Jan-05

2

Jul-04

Jan-04

Jul-03

Jan-03

Jul-02

12

Jan-02

Jul-01

Jan-01

Jul-00

6

Jan-00

Jul-99

Jan-99

Jul-98

Jan-98

Jul-97

Jan-97

Jul-96

Jan-96

Unemployment Rate (%)

UNEMPLOYMENT RATES

February 2015 Civilian Labor Force Rate 4.9% College Graduate Rate 2.5%

10

8

Civilian Labor Force

4

College Graduates

0

U.S. BIRTHS 4.75 Generation Z (Ages 1 to 10)

Millennials (Ages 11 to 35)

Generation X (Ages 36 to 50)

Baby Boomers (Ages 51 to 61)

4.55 4.35

3.95 3.75 3.55 3.35 3.15 2.95

52

U.S. BIRTHS 1954-2014 Source: CDC.gov

2014

2012

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

1978

1976

1974

1972

1970

1968

1966

1964

1962

1960

1958

1956

2.75 1954

Births (Millions)

4.15

$100,000+ INCOME HOUSEHOLDS GROWING 3 TIMES  FASTER THAN ALL U.S. HOUSEHOLDS (2014 Dollars)

All Households (mill)

$100,000+ Income Households (mill)

124.6

30.8

82.4 11.3

1980 53

2014

1980 Source: U.S. Census Bureau (P60-252)

2014

BASIC DEMOGRAPHICS DRIVE AN INDUSTRY  EMERGING FROM ITS SLUMBER Total estimated construction shortfall of 6.2 million houses from 2008-2015.

Annual Shortfall in Production (est.)

Average Annual Production

775,000

1,585,000 Actual Average Annual Housing Starts

810,000

1970-2007

2008-2015 Average Annual Housing Starts

54

Source: U.S. Census Bureau

HOUSING STARTS VS. HOUSEHOLD GROWTH 1970‐1979 Average  Annual Housing  Starts 1.77 (mil)

1980‐1989 Average  Annual Housing  Starts 1.49 (mil)

1990‐1999 Average  Annual Housing  Starts 1.37 (mil)

2000‐2007 Average  Annual Housing  Starts 1.74 (mil)

2008‐2015 Average  Annual Housing  Starts .81 (mil) 2,400.00

100,000 1,600.00 75,000

50,000 800.00

25,000

Number of Households Has Grown 97% Since 1970

0

0.00 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

55

Total Households

Total Single and MultiFamily Housing Starts Source: U.S. Census Bureau

Housing Starts (000)

Households (000)

125,000

WHY TOLL BROTHERS? WELLESTABLISHED BRAND

   

A proven management team with an established track record The dominant player with few competitors in the luxury market Nationally recognized, award-winning brand Highly service-oriented culture

GEOGRAPHIC PRODUCT DIVERSITY

    

Strong land position – Control 43,800 lots* Balanced footprint across the East, West and South Expanding urban presence in NYC, Metro Washington DC & Philadelphia A homebuilder with a niche in urban, rental and distressed real estate Diversified move-up, active adult, and high-density product lines

STRONG FINANCIAL BASE

 Strong balance sheet and credit ratings  Approximately $1.3B of available liquidity at Q1 end FY 2016  No corporate debt maturities until September 2017

STRONG DEMOGRAPHIC TRENDS

 Serving the nation's growing number of affluent households  Strongest buyer profile in the industry

56

* As of January 31, 2016