UBS Building & Building Products 9 th Annual CEO Conference November 9, 2011

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1 UBS Building & Building Products 9 th Annual CEO Conference November 9, 2011

2 Statement Of Forward-looking Information 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; financial 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; 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; 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 selfinsurance accruals, 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. " " 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." 2"

3 OVERVIEW Founded in 1967" Public on NYSE since 1986" Nationʼs leading luxury home builder" 6th largest U.S. homebuilder " $1.5 billion in homebuilding revenues and over 2,600 home deliveries FY 2011" Builds in 19 states and approximately 50 markets" Serves urban and suburban, luxury move-up, emptynester, and active-adult buyers" Strong balance sheet and credit ratings " Insider & director ownership of over 16% at FYE 2010" " Only brand name in luxury market" 3

4 Nationwide Footprint Positions Us For Growth Minneapolis! λ Sacramento! λ San Francisco! λ San Jose! λ Reno! Las Vegas! Los Angeles!λ Palm Springs!λ λ San Diego!λ λ Phoenix! λ Denver!λ Dallas!λ Detroit! λ λ Boston! Chicago λ! New York! λ λ Hartford! Philadelphia! λ λ Princeton! λ Washington DC! λ Wilmington! Charlotte! Raleigh! λ λ λ Hilton Head! 19 States" 50 Markets" Austin!λ San Antonio!λ λ Houston! λ Jacksonville! Orlando! λ Sarasota! λ Jupiter! λ λ West Palm Beach! Ft. Myers! λ Naples! λ λ Miami! 4"

5 Current Market Macro news is choppy Interest rates remain near historic lows Housing affordability near an all-time high Confidence is crucial to our buyer Housing data is skewed by distress 5"

6 Toll FY2011 Financial Results Net contracts up 24% for the fourth quarter and 9% for FY 2011 Backlog up 15% at FYE 2011 Deliveries up 6% for the fourth quarter and flat for FY 2011 Cancellation rate at historic norms 6"

7 Only National Homebuilder Focused On Luxury Market Tollʼs main competitors are small private builders." Average Home Price* ($000) $565 $206 $207 $217 $240 $243 $258 $278 $284 $296 $306 DR Horton KB Home Beazer Ryland Lennar Pulte MDC Hovnanian NVR St Pac Toll Brothers *Updated based on most recent reported fiscal year end deliveries as of October 31, "

8 Why Toll Brothers? Uniquely Positioned in Market Experienced Management Team Financial Strength Demographics Favor our Brand and Industry 8"

9 FOCUS ON LUXURY Only national builder focused on luxury market Build high-volume semi-custom product targeted to top 20% of U.S. income households 80% of our deliveries in FY 2011 less than $700,000 Main competitors are small local or regional private builders 9"

10 FOCUS ON LAND Operate in most difficult approval markets in country High concentration in Washington D.C. to Boston corridor Skilled in land acquisition, approvals, and development across all markets Purchased over $700 million of land last 2 years 10"

11 BRAND NAME IN LUXURY MARKET Honored to have won the three most coveted awards in the home building industry The only brand name in the luxury market Goal is to expand brand in markets where we are already well-established Grow brand name in urban and in-fill opportunities, high-rise, second home, active adult and suburban high-density markets National Builder! of the Year! " Americaʼs! Best Builder! National Housing! Quality Award! 11"

12 Community Entrance 12"

13 Amenities 13"

14 Maxwell Place Residents Club 14"

15 Model Home 15"

16 Sales Center 16"

17 Foyer 17"

18 Kitchen 18"

19 Family Room 19"

20 Bedroom 20"

21 Bathroom 21"

22 Walk in Closet 22"

23 Basement 23"

24 Backyard 24"

25 Focus on Broad Range of Products Move-up Empty-Nester Active Adult Second Home Urban-Infill Urban Redevelopment Golf Course & Country Club High-Rise Suburban High-Density 25"

26 Urban Infill 26"

27 THE TOURAINE 65 TH & LEX. 27"

28 Evolving Product Diversification (by unit deliveries) FY % 7% 25% 53% 28"

29 Product Diversity in a State Hillsborough Chase - Estate Luxury Move Up Cranbury Brook - Active Adult Condo Hudson Tea Condo Conversion Laurel Creek - Country Club/Resort/Golf Maxwell Place Luxury High-Rise The Mews at Laurel Creek - Active Adult Carriage Regency at Monroe - Active Adult Single 29"

FOCUS ON CUSTOMIZATION Developed systems over 40 years Provide custom home buying experience with benefits of high volume production Hundreds of structural options

30 FOCUS ON CUSTOMIZATION Developed systems over 40 years Provide custom home buying experience with benefits of high volume production Hundreds of structural options and thousands of designer options Pre-designed, pre-engineered and pre-budgeted In FY 2011 the average buyer added approximately $101,000 in options and premiums 30"

31 Why Toll Brothers? Uniquely Positioned in Market Experienced Management Team Financial Strength Demographics Favor our Brand and Industry 31"

32 Experienced Management Team Survived and grown through 5 previous downturns" Average tenure of senior management exceeds 16 years" Experienced land teams remain intact in most markets" 32"

Managed Through the Downturn Peak Trough Total Revenue* $6,115 $1,495 Land Position 91,200 31,900 Community Count 325 190 Cash* $633 $1,908 Net-Debt-to-Cap Ratio** 31.8% 7.

33 Managed Through the Downturn Peak Trough Total Revenue* $6,115 $1,495 Land Position 91,200 31,900 Community Count Cash* $633 $1,908 Net-Debt-to-Cap Ratio** 31.8% 7.4% *$ in millions **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. 33"

34 Preparing to Grow Bottom of Market FYE 2011 Land Position 31,900 37,500 Community Count "

GIBRALTAR CAPITAL Capitalize on core expertise, wide geographic footprint, and financial relationships to find distressed opportunities Completed 5

35 GIBRALTAR CAPITAL Capitalize on core expertise, wide geographic footprint, and financial relationships to find distressed opportunities Completed 5 transactions since June 2010 Approximately $100 million invested in Gibraltar Capital Control nearly $2 billion of mortgage notes and REO book value 35"

36 Why Toll Brothers? Uniquely Positioned in Market Experienced Management Team Financial Strength Demographics Favor our Brand and Industry 36"

37 TOLL BROTHERS CASH AND MARKETABLE U.S. TREASURY SECURITIES ($ Thousands) During unprecedented time of industry distress Toll grew cash $1,633,000 $1,909,000 $689,000 $633,000 $900,000 $1,237,000 $1,146, Fiscal Year 37"

38 NET DEBT TO CAPITAL % 50.9%50.4% 50.2% 49.6% 47.0% 48.4% 48.7% 48.2% 46.0% 46.2% 41.4% 38.6% 40.9% 35.5% 27.6% 31.8% 26.8% 12.6% 13.6%13.9% 7.4% At FYE October 31, 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 stockholdersʼ equity.!! 38

39 Capitalization* Toll Brothers Inc. First Huntingdon Finance Corp. Toll Brothers Finance Corp. Citi Deutsche Bank $885 Million Revolving Credit Facility Due October 2014 Royal Bank of Scotland SunTrust PNC Capital One Bank of Montreal Sumitomo Mitsui Wells Fargo Comerica US Bank California Bank & Trust TOTAL $125 MM $125 MM $125 MM $100 MM $90 MM $75 MM $50 MM $50 MM $50 MM $45 MM $35 MM $15 MM $885 MM Senior Notes Principal Coupon Maturity $140 MM 6.875% November 2012 $142 MM 5.950% September 2013 $268 MM 4.950% March 2014 $300 MM 5.150% May 2015 $400 MM 8.910% October 2017 $250 MM 6.750% November 2019 Total Weighted Average $1,499 MM 6.630% 4.3 years *As of October 31, "

40 Conservative Debt Maturities*! $400 First Builder to Access Public Capital Markets Post - Sept Financial Crisis $282 $278 $300 $250 Public Debt (Senior) FY $ millions *As of October 31, "

41 Superior Capital Market Access SENIOR/CORPORATE CREDIT RATINGS! Fitch Inc.! BBB- (Stable)! Standard & Poorʼs! BB+ (Stable)! Moodyʼs! Ba1 (Stable)! 41"

Recent Credit Rating Agency Quotes Moodyʼs:" [Tollʼs credit rating] reflects the company's ability to generate improving operating results and credit metrics even as it faces the same daunting

42 Recent Credit Rating Agency Quotes Moodyʼs:" [Tollʼs credit rating] reflects the company's ability to generate improving operating results and credit metrics even as it faces the same daunting headwinds [as] its peers " S & P" The following list ranks all the rated U.S. homebuilders from strongest to weakest based on rating and outlook. " " " " " Fitch" [Tollʼs credit rating] reflects the company's well-entrenched market position as the pre-eminent public builder of luxury homes, the successful execution of its operating model that has produced one of the better margins within the industry and relatively stable debt-protection measures... 42"

43 Why Toll Brothers? Uniquely Positioned in Market Experienced Management Team Financial Strength Demographics Favor our Brand and Industry 43"

44 Unemployment Rates UNEMPLOYMENT RATE (%) Jan- 92 Jul- 92 Jan- 93 Jul- 93 October 2011 Civilian Labor Force Rate 9.0% College Graduate Rate 4.4% Civilian Labor Force Jan- 94 Jul- 94 Jan- 95 Jul- 95 Jan- 96 Jul- 96 Jan- 97 Jul- 97 Jan- 98 Jul- 98 Jan- 99 Jul- 99 Jan- 00 Jul- 00 College Graduates U.S Bureau of Labor Statistics Jan- 01 Jul- 01 Jan- 02 Jul- 02 Jan- 03 Jul- 03 Jan- 04 Jul- 04 Jan- 05 Jul- 05 Jan- 06 Jul- 06 Jan- 07 Jul- 07 Jan- 08 Jul- 08 Jan- 09 Jul- 09 Jan- 10 Jul- 10 Jan- 11 Jul "

45 Baby Boomers Drive Luxury Market Toll Serves Three Niches: Move-up, Empty Nester and Active Adult" 45"

$100,000+ Income Households Growing 4 Times Faster Than All U.S. Households All Households (mill) 82.4 118.

46 $100,000+ Income Households Growing 4 Times Faster Than All U.S. Households All Households (mill) (2010 Dollars) $100,000+ Income Households (mill) Source: U.S. Census Bureau (P60-239)! 46"

47 U.S. Households and Total Housing Starts Households* Shortfall in Household Formations 2,200 2,100 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1, Total Family Starts* Housing Starts Source: U.S. Census Bureau! *Numbers in thousands! 47"

48 Why Toll Brothers? Investing in Toll is a way to invest in: A proven management team with a tremendous track record. The nation's growing number of affluent households. The nation's strong baby-boomer driven demographic growth. A strong balance sheet. A premier land developer in a lot-constrained environment. The dominant player with few competitors in the luxury market. 48"

49 49"

Deutsche Bank Global Industrials and Basic Materials Conference June 14, 2012

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