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  • CFA InvestMNt Conference

    Richard Edwards, Director Investor Relations

    August 5, 2015

    POLARIS INDUSTRIES INC.

  • Polaris Industries Inc. – A Global Corporation

    ~8,100 Employees Worldwide

    15 Manufacturing Locations

    5 Research & Development Centers of Excellence

    ~1,850 Dealers In North America

    ~1,400 Dealers Outside North America >380,000 Units Shipped Worldwide in 2014

    >100 Countries – Polaris Products Sold CFA Aug-2015 2

  • 3

    Corporate Overview: 2014 Sales

    CFA Aug-2015

    Building a Highly Profitable Global Enterprise

    Sales by GeographySales by Component*

    62% 17%

    7%

    8%

    6%

    75% 15%

    10%

    BILLION UP

    International

    Canada

    United States

    PG&A

    Global Adjacent Markets

    Motorcycles

    Off-Road Vehicles

    *Reclassified for new Global Adjacent Markets organizational structure

    Snowmobiles

  • N.A. Powersports Consolidated Share

    4CFA Aug-2015

    #1 N.A. Powersports OEM Again – Extending Lead

    2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E

    Consolidated Market Share in Units (Using Total Motorcycle Industry)

    Honda Harley

    Yamaha

    Kawasaki Can Am

    Other

  • Consistent Financial Performance

    5CFA Aug-2015

    Return on Invested Capital (2010-2014)Return on Assets (2010-2014)

    Dividends (Per Share)5+Year Total Return Dec. 31, 2009 – July 30, 2015

    Polaris Peer Average (ACAT, BC, DE, HOG, WGO, TTC) S&P 500 Average

    Expectation

    16% 20%

    23% 24% 24%

    4%

    7% 9%

    13%

    9%9%

    6% 6% 7% 6%

    2010 2011 2012 2013 2014

    33%

    41% 42% 42% 42%

    6% 12%

    15%

    21%

    14% 11% 12%

    7% 8% 6%

    2010 2011 2012 2013 2014

    $0.80 $0.90

    $1.48 $1.68

    $1.92 $2.12

    2010 2011 2012 2013 2014 2015

    596%

    186% 106% 89% 70%

    Polaris Peer Avg.

    S&P Midcap

    400

    S&P 500

    DJIA

    5-year dividend payout $457 million 5-year CAGR >20%

  • Polaris Strategic Objectives

    Vision & Strategy VISION STRATEGY Fuel the passion of riders, workers and outdoor enthusiasts around the world by delivering innovative, high quality vehicles, products, services and experiences that enrich their lives.

    Polaris will be a highly profitable, customer centric, $8B global enterprise by 2020. We will make the best off-road and on-road vehicles and products for recreation, transportation and work supporting consumer, commercial and military applications. Our winning advantage is our innovative culture, operational speed and flexibility, and passion to make quality products that deliver value to our customers.

    Strategic Objectives Best in Powersports PLUS Global Market Leadership Strong Financial

    Performance

    Growth Through Adjacencies LEAN Enterprise is Competitive Advantage

    5-8% annual organic growth >33% of Polaris revenue

    >$2B from acquisitions & new markets Significant Quality, Delivery & Cost Improvement

    Sustainable, profitable growth Net Income Margin >10%

    Guiding Principles

    Performance Priorities

    Best People, Best Team

    Safety & Ethics Always

    Customer Loyalty

    Growth

    Margin Expansion

    Product & Quality Leadership

    LEAN Enterprise

    GROW SALES >$8 Billion by 2020 12% CAGR INCREASE NET INCOME >10% of Sales by 2020 13% CAGR

    CFA Aug-2015 6

  • Full Year 2015 Guidance

    Narrowing Sales and EPS Guidance; maintaining upper-end of guidance range

    North American retail sales growth and market share gains expected to continue

    Dealer and factory inventory growth rates expected to moderate by year-end

    Total sales projected up 10% to 12% (narrowed from previous guidance)

    Net income margin projected to remain above long-term goal of 10%

    7CFA Aug-2015

    $4,480

    2014 Actual FY 2015 Guidance

    $6.65

    2014 Actual FY 2015 Guidance

    Narrowing FY 2015 Sales & EPS Guidance in Spite of Production Pressures

    Diluted EPSTotal Company Sales

    Up 10% to 12% $4,920 to $5,025

    Up 10% to 12% $7.32 to $7.42

    ($ millions)

  • 8

    Off-Road Vehicles

    CFA Aug-2015

    +15% $2,793*

    *2014 reclassified to exclude Defense and Commercial Sales

    #1 in Market Share – 16 New MY’16 vehicles Introduced

    $2,226 $2,522

    $2,793

    2012 2013 2014 2015 Guidance

    $ in

    M illi

    on s

    Up mid-single

    digits %

    3-Yr CAGR +17% Sales

    Reclassified*

  • 9

    Video – RZR 1000 Turbo

    CFA Aug-2015

  • 10

    Motorcycles

    CFA Aug-2015

    Amazing Products & Launches – Big Opportunity!

    $196 $220

    $349

    2012 2013 2014 FY 2015 Guidance

    $ in

    M illi

    on s

    Est. 1998

    Acquired 2011

    Est. 2014

    Up 55% to 70%

    3-Yr CAGR +38% Sales

    +59%

  • 11CFA Aug-2015

    FY 2014 FY 2015 Expectations

    Slingshot exceeding expectations

    Increased production rate in April

    Slingshot dealers in N.A. at 420+

    All but two States have approved Slingshot (Hawaii and Maryland)

    Several Canadian provinces to resolve

    Q2 HighlightsPolaris Slingshot Sales

    Slingshot

    >1,000 Units Shipped in Q4

    >20% of Total Motorcycle

    $ Sales Guidance

    Slingshot Remains HOT!

  • 12

    Video – Slingshot

    CFA Aug-2015

    START SHIP: JULY 28

    $26,199 US MSRP LIMITED RUN

    SL LIMITED EDITION BLACK PEARL

  • 13

    Snowmobiles

    CFA Aug-2015

    Solid #2 – Growing Market Share & Continuous Quality Improvement

    $283 $302 $322

    2012 2013 2014 FY 2015 Guidance

    $ in

    M illi

    on s

    Down low-single digits %

    3-Yr CAGR +5% Sales

    +7%

  • 14

    Parts, Garments & Accessories (PG&A)

    CFA Aug-2015

    Growing Core Brands; Leveraging Aftermarket Opportunities

    $461 $611

    $742

    2012 2013 2014 FY 2015 Guidance

    $ in

    M illi

    on s

    3-Yr CAGR +22% Sales

    Accessories

    Motorcycles

    Adjacent Markets

    Other

    Garments Snow

    Parts

    Off-Road Vehicles

    1H 2015 1H 2015

    +21% Up high-teens %

  • 15

    International

    CFA Aug-2015

    Focused on Execution in Challenging Markets and F/X Pressures

    1H 2015 Sales by Geography1H 2015 Sales by Product

    Europe

    Latin America

    Asia

    Aus / NZ

    ME / Africa

    $461 $592

    $685

    2012 2013 2014

    3-Yr CAGR +17%

    Latin America

    Asia/Pacific

    Europe, Middle East & Africa

    Total International Sales ($ in millions)

    FY 2015 Guidance

    Down low-single digits %

    +16%

    Motorcycles

    Snow

    Adjacent Markets

    PG&A

    ORV

  • Polaris-Eicher JV Product Launch - MULTIX

    CFA Aug-2015

    MULTIX Multi-Role Personal Vehicle 3 models to start

    511cc diesel engine MSRP ~ $3,600 - $4,500 Street legal in India

    ~30 dealers at launch  >200 by 2020 Start of production end of July 2015 Target market potential >60 million people

    Small/micro business owners in India

    Signed July 2012 50/50 Joint Venture in India $27M Polaris investment to-date Factory in Jaipur, India – 200,000 sq. ft. JV expected to be profitable by 2018

    JV Overview

    Unique Vehicle Platform Designed Specifically for the Multi-Role Consumer

    Replaces

    16

  • 17

    Video – Multix

    CFA Aug-2015

  • 18

    Global Adjacent Markets

    CFA Aug-2015

    Growing Outside Powersports

    Military

    Work & Transportation*

    *Small Vehicles + Commercial

    $221 $273

    2013 (Reclassified)

    2014 (Reclassified)

    FY 2015 Guidance

    $ in

    M illi

    on s

    **Beginning in 2015 the organization restructured by combining Small Vehicles, Commercial & Military into “Global Adjacent Markets”

    Up 5% to 10%

    Total Sales**

    +24%

  • Expectations for 2nd Half 2015

    19CFA Aug-2015

    Win Competitive ORV Battle Leverage product armada and industry-leading market position Remain on offense – innovation, customer excellence, improved execution

    Continue to develop and expand motorcycles (Victory, Indian & Slingshot)

    Increase Spirit Lake Paint Throughput Execute, Execute, Execute

    Improve Europe – win competitive battle; leverage Opole Improve Dealer Inventory Levels – up mid-single digits % by year-end

    ATV RFM fully embraced by dealers

    Further Optimize Plant Network – Poland, India (Eicher/Polaris JV), Alabama

    Simple fast, agile, high quality Lean / VIP gaining momentum

    1st Half Performance Challenged; 2nd Half Execution Improving

  • Safe Harbor Except for historical information cont