Investor Presentation  June 7, 2016  POLARIS INDUSTRIES INC.  

 

 CORPORATE OVERVIEW – 2015  2015 Sales by Reporting Segments*   1954 Year Polaris was Founded ~8,100 Employees Worldwide 16 Manufacturing Locations 5 Research & Development Centers ~1,800 Dealers In North America ~1,700 Dealers Outside North America >390,000 Units Shipped Worldwide >100 Countries – Polaris Products Sold   Building a Highly Profitable Global Enterprise  IR JUNE 7 2016  2  Int’l  Canada  United States  Global AdjacentMarkets  Motorcycles  Off-RoadVehicles/Snow  *PG&A included in respective segments  $4.72 BILLION UP 5%      TOTALCOMPANYSALES   2015 Sales by Geography 

 Grew Full Year Sales 5%; Net income flatAll businesses gained market share in 2015International sales down 5% (up 10% excluding currency)Constant Currency:  EMEA +2%; Latin America +66%; Asia Pacific +21%; Pretax Income included ~$70 million of negative currencyEarnings per share up 2% to $6.75Repurchased 2.2 million shares for $294 millionNet income margin down 49 bps from 2014  Grew Market Share in All Businesses Despite Tough Economic Headwinds  Net Income  Total Company Sales  3  IR JUNE 7 2016  2015 SALES & NET INCOME  ~Flat  +5%      Motorcycles  Adjacent Markets  FY 2015 Sales by Reporting Segments(includes respective PG&A)  ORV / Snowmobiles  ($ millions)  ($ millions) 

 Company Performance Below Expectations  4  IR JUNE 7 2016  WHAT WENT WELL  INTERNAL FACTORS  EXTERNAL FACTORS  STRENGTHENING DOLLAR US  Canda  Euro OIL & AG COMMODITIES DOWNSoft retail in oil statesMORE COMPETITIVE OFFERINGSHonda, BRP, John Deere, YamahaMILD WINTERSnowmobile market weak  PAINT ISSUESScout / Slingshot delaysINVENTORY TOO HIGHFactory and DealerINCONSISTENT QUALITYRecallsPOOR FORECASTING / EXECUTIONGuidance revision in Q4  INDIAN GROWTHRetail  ~80% for 2015SLINGSHOT GROWTH / PROFITABILITYSales well north of $100 million in year onePOWERSPORTS SHARE GAINSGrew for 7th straight yearLEAN / VIP ACCELERATIONOver 900 VIP projects in pipeline  2015 PERFORMANCE – WHAT HAPPENED? 

                 Strategic Objectives   Vision & Strategy  VISION  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.  STRATEGY  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 productsthat deliver value to our customers.  Best in Powersports PLUS   Growth through Adjacencies  5-8% annual organic growth   >$2B from acquisitions & new markets   Global Market Leadership  LEAN Enterprise is Competitive Advantage   >33% of Polaris revenue  Significant Quality, Delivery & Cost Improvement  Strong Financial Performance  Sustainable, profitable growthNet Income Margin >10%   Guiding Principles  Best People, Best Team   Safety & Ethics Always   Customer Loyalty  Performance Priorities  Growth  Margin Expansion  Product & Quality Leadership  LEAN Enterprise  >$8 Billion by 2020  12% CAGR  >10% of Sales by 2020   13% CAGR  5  IR JUNE 7 2016  Strategy and Objectives Remain Valid & Achievable 

 ORV/Snowmobiles Down Modestly, Motorcycles Unchanged; GAM Increased  6  IR JUNE 7 2016  Global Adjacent Markets  Motorcycles  ORV / Snowmobiles  2016 SALES GUIDANCE BY REPORTING SEGMENTS*  $698.3  Uphigh-teens %(unchanged)  IndianVictorySlingshot  IndianVictorySlingshot  PG&A  PG&A  PG&A  PG&A  W&TDefense   W&TDefense  Up high-single digits %(increased)  Down low to mid-single digits %(decreased)  ORV  ORV  PG&A  PG&A  Snow  $3,708.9  $312.1  ($ millions)  Snow  *Guidance unchanged as disclosed on 4/21/16 

 OFF-ROAD VEHICLES (ORV)  7  IR JUNE 7 2016  2016 Objectives  Polaris Off-Road Vehicles Sales*  Polaris N.A. ORV Market Share  Polaris Off-Road Maintain #1 Market Share Position in More Competitive Environment    ($ millions)Excludes PG&A  Twice the Nearest Competitor!  #1  COMPETITORS (8)  Leverage #1 Industry Position – scale Eliminate waste, reduce costs – RFMOn-going innovation for global expansionExpand market to new customersNew leadership: Matt Homan & Craig Scanlon  Best in Powersports PLUS  5-Year CAGR +15%  NEW MY 16.5  *2013-2015 reclassified to exclude Defense and Commercial Sales to GAM 

 MOTORCYCLES  8  IR JUNE 7 2016  2016 Objectives  Motorcycle Vehicle Sales  Indian® “Legendary” / Victory® “American Muscle”Broaden product lineExpand dealer network Accelerate accessories growthSlingshot®Broaden consumer baseBuild upon first mover advantageGrow globallyEnhance dealer engagement  Total Motorcycle Market Share 2013 - 2015  Motorcycle Growth Continues; Production Constraints Resolved  Acquired2011  Est. 2014  1.8PTS2013 to 2015  Indian Motorcycle  Harley-Davidson  Japanese Top 4  3.6PTS2013 to 2015  0.5PTS2013 to 2015  Best in Powersports PLUS  MY’17 Victory Octane™(Mid-sized)  MY 16.5 Slingshot® White Pearl SL LE(Moto-Roadster)  MY’16 Indian Springfield™ (Bagger/Touring)  5-Year CAGR +50%  ($ millions)Excludes PG&A 

 SNOWMOBILES  9  IR JUNE 7 2016  2016 Objectives  Snowmobile Vehicle Sales  Industry-leading qualityGrow Timbersled™ categoryLeverage platform commonalityContinue to grow Market ShareIntroduced 7 new MY’17 snowmobiles in March (+4 Limited Editions)   6-Year Market Share Pts. Growth – N.A.  Strong #2 and Gaining Share in N.A.  (’15/’16 season vs. ’09/’10)  Best in Powersports PLUS  5-Year CAGR +11%  800 Rush® Pro-S2016 Real World Sled of the Year  ($ millions)Excludes PG&A 

 PARTS, GARMENTS & ACCESSORIES (PG&A)  10  IR JUNE 7 2016  2016 Objectives  PG&A Sales – All Businesses  Grow Core PG&A globallyBuild aftermarket brandsExpand digital shopping experienceRefine retail transformation model (SMART)  FY 2015 Sales by Segment & Category  Accelerate Core Growth / Broaden Aftermarket Offerings        Core Polaris PG&A Brands  Aftermarket Brands  ($ millions)  Motorcycles  Adjacent Markets  ORV / Snowmobiles  Apparel  Accessories  Parts  Best in Powersports PLUS  5-Year CAGR +18%  Accessorized RANGER Crew® XP-900 With Lock & Ride® Pro-Fit Cab System 

 GLOBAL ADJACENT MARKETS  11  IR JUNE 7 2016  2016 Objectives  Global Adjacent Markets Vehicle Sales*  Aixam grows #1 market share . . . AgainExpand commercial sales / improved executionLeverage installed baseAdd scale / capability through M&AObtain program of record (Military)  Work & Transportation / Military ORV Markets  Building Businesses for Future Growth / Profitability  Growth Through Adjacencies  Work & Transportation  Military  $600+ Million Market  Very-light  Ultra-light  COTS(Commercial off the shelf)  $4+ Billion Market  5-Year CAGR +46%  Acquired March 2016   *2013-2015 reclassified to include Defense and Commercial Sales  ($ millions)Excludes PG&A 

 Overcome Currency Challenges, Grow Share, Leverage Opole  12  IR JUNE 7 2016  INTERNATIONAL  5%(cc +10%)  ($ millions)Includes PG&A  2016 Objectives  Drive motorcycle growth – midsize offerings catalystsEffectively leverage Poland operationsContinue to build emerging market foundationImprove execution~1,700 dealers  International Sales  Opole, Poland Manufacturing Plant  Hammerhead Off-Road  Polaris/Eicher JV - Multix  Global Market Leadership  5-Year CAGR +16% 

 Lean Delivers Sustainable Profitable Growth and Competitive Advantage  13  IR JUNE 7 2016  LEAN ENTERPRISE  Lean drives continuous improvement across the business.Customer Value, Flow, Pull, Standardized Work, Waste Elimination, Built-in Quality and Speed    RFM Commercial Model    Lean Product Development  Lean Business Process  Plant Lean  Lean Material Flow  OUT  IN    Consumer & Dealer Pull      1  2  3  4  5  SxS to RFM in 2H 2016  Start of ProductionQ2 2016  >$100 Million VIPCost Down Opportunity    Lean Business ProcessImprov’t    Lean PDP  RFM - Order to Delivery  Distribution  Plant Network  Supply Chain  Dealers    Huntsville Lean    LEAN Enterprise is Competitive Advantage 

 750 experienced engineers Industry-leading technology centersWyoming, MNRoseau, MNSwitzerland France (Goupil, Aixam)  R&D Investment Fuels Innovation & Growth  Innovation Vitality Index  R&D Spend  14  IR JUNE 7 2016  RESEARCH & DEVELOPMENT  ($ millions) 

 725,000 sq. ft. manufacturing plantInitially produce RANGER® SxS; Slingshot® to start in Q3 2016~1,700 employees at capacity~$150 million investmentProvides capacity, flexibility and improved efficienciesIncorporates most advanced lean flow processes and industry-leading technologies  Huntsville Production to Start in Q2 2016 as Planned  15  IR JUNE 7 2016  NEW MANUFACTURING FACILITY – HUNTSVILLE, AL  LEAN Enterprise is Competitive Advantage 

 Difficult / Decent Start to YearSales & Earnings down- on guidance; Indian outpacing industry; ORV catching up; RecallVariability too ConsistentMonth-to-month, region-to-region demand shifts challengingLean Enterprise Traction BuildingVIP cost initiatives; Inventory reduction; Standard work & waste elimination Executing RZR Recall Q2 PriorityCustomer safety / back to riding #1 focus; Retail & production plans in placeRegain Momentum in Growing Powersports IndustryAggressively protecting #1 share positionR&D and Growth Investments OngoingProducts / services and acquisition pipeline active  All Out Assault on Cost & Working to Make Growth Happen  16  IR JUNE 7 2016  Q1 2016 Comments 

 ORV sales softer than previously anticipatedPoor weather, RZR recall, slow dealer floor traffic ORV/Snowmobile segment sales now expected in the range of down high-single to low-double digits %Gross margin pressure due to mix, plus potential increased recall costsGross Margin % trending lower than Q1 2016Dealer inventory health remains a top priorityMotorcycle segment growth expected to continue    17  IR JUNE 7 2016  Q2 2016 Update 

 

 

 

 

 

 

Except for historical information contained herein, the matters set forth in this document, including but not limited to management’s expectations regarding 2016 sales, shipments, margins, currencies, net income and cash flow, the opportunities for expansion and diversification of the Company’s business and the Company’s guidance on earnings per share are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements.  Potential risks and uncertainties include such factors as product offerings, promotional activities and pricing strategies by competitors; manufacturing operation expansion initiatives; acquisition integration costs; warranty expenses; foreign currency exchange rate fluctuations; environmental and product safety regulatory activity; effects of weather; commodity costs; uninsured product

liability claims; uncertainty in the retail and wholesale credit markets; performance of affiliate partners; changes in tax policy and overall economic conditions, including inflation, consumer confidence and spending and relationships with dealers and suppliers.  Investors are also directed to consider other risks and uncertainties discussed in our 2015 annual report and Form 10-K filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements.The data source for retail sales figures included in this presentation is registration information provided by Polaris dealers in North America and compiled by the Company or Company estimates. The Company must rely on information that its dealers supply concerning retail sales, and other retail sales data sources and this information is subject to revision.Non-GAAP Measure - Constant Currency Reporting. This presentation includes information regarding the Company’s 2015 results and 2016 expectations on a constant currency basis, which is a non-GAAP measure, as well as on a GAAP basis. For purpose of comparison, the results on a constant currency basis uses the respective prior year exchange rates for the comparative period to enhance the visibility of the underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations.    18  IR JUNE 7 2016  SAFE HARBOR 

 CONSISTENT FINANCIAL PERFORMANCE Q1 2016 SALES & NET INCOMEQ1 2016 N.A. RETAIL SALES & DEALER INVENTORY2016 FULL YEAR DETAILED GUIDANCE2016 FULL YEAR GROSS PROFIT MARGIN GUIDANCE FOREIGN CURRENCIES EXPOSURES FOR POLARIS POLARIS FINANCIAL POSITIONFACTORY INVENTORYTAYLOR-DUNN ACQUISITIONPOLARIS CUSTOMER USAGE PROFILESMANUFACTURING LOCATIONS     19  IR JUNE 7 2016  APPENDICES 

 

 Return on Invested Capital  Sales & Earnings Per Share  Strong Balance Sheet & Cash Flow Generation  Dividends & Share Repurchase  5-Year Total Return   20  IR JUNE 7 2016  FINANCIAL STRENGTH & FLEXIBILITY  Dividend 4%More AggressiveShare Buyback  Expectations  ($ millions)  *PEERS: ACAT, BC, DE, DOO, HOG, WGO, TTC  Industry-Leading!  June 2, 2011 – June 2, 2016(Including Dividend Yield)  5-Year CAGR: Sales 19%, EPS 26%  Guidance  $6.20 TO $6.80  ($ millions) 

 

 Q1 sales and net income in-line with guidanceORV/Snowmobile sales down 9%; Motorcycles up 18%; Global Adjacent Markets down 5%Results include ~$30 million of additional costs: product liability, warranty, acquisition related costs and severance accrualsEarnings per share decreased 45% to $0.71Gross profit margin down 324 bps from negative currency, mix and higher warrantyN.A. dealer inventory levels down 1%ORV down 10 percent  Q1 Results In-line with

 

 Expectations  Q1 2016 Net Income  Q1 2016 Sales  21  IR JUNE 7 2016  Q1 2016 SALES & NET INCOME    -5%  -47%    ($ millions)  ($ millions) 

 Polaris N.A. retail  6% for Q1 2016 vs. Q1 2015Polaris held Powersports share – remains clear #1North American Industry improved sequentially vs. Q4; Q1  similar to PolarisPolaris Q1 2016 N.A. dealer inventory  1% vs. Q1 2015ORV  10% year-over-year; RANGER®, RZR® and ATVs all declinedMotorcycles  significantly as expected, near targeted levelsSnowmobiles  low-twenties % due to lower snowfall in key regionsRFM business model re-engaged for motorcycles; ATVs working well; SxS to convert in Q4 2016  Retail Improved; Dealer Inventory Down vs. Q1 2015  N.A. Dealer Inventory  Polaris Retail Sales  22  IR JUNE 7 2016  N.A. POWERSPORTS RETAIL SALES: Q1 2016   -12% Existing ORV Models 4% New ORV models 2% Snowmobiles 5% Slingshot/Indian 0% New Dealers -1% Total Increase       -1% 

 

 Earnings Per Share (diluted)  Gross Profit Margin  23  IR JUNE 7 2016  Total Company Sales  2016 Sales & Earnings Guidance Remains Unchanged  Assumptions Protect market shareDealer inventory about flatSegment ExpectationsORV/Snowmobiles low to mid-single digits % (decreased)Motorcycles high-teens % (unchanged)Global Adjacent Markets high-single digits % (increased)  Assumptions F/X = minus ~90 bpsHuntsville start-up Q2’16Commodities positive  AssumptionsF/X = minus ~55¢ per share (unchanged)Share count down ~2% (increased)Net income $ down 1% to 10% (unchanged)  2016 FULL YEAR GUIDANCE (as disclosed on 4/21/16)  2% to 3%(unchanged)  Constant CurrencyFlat to 5%  Constant Currency20 to 30 bps  Constant CurrencyFlat to 9%$6.75 to $7.35  8% to 1%$6.20 to $6.80(unchanged)  70 to 120 bps(Improved)  Other 2016 Expectations  Operating expenses: Up 10 to 30 bps as a % of sales (decreased)Income from financial services: grow faster than total company sales (increased)Income taxes: Approx. 35% of pre-tax income (unchanged)International sales:  low to mid-single digits % (unchanged)PG&A sales:  Grow faster than overall company (unchanged)  ($ millions) 

 

 By Component  Q1 2015 Actual  Q1 2016 Actual  FY 2016 Guidance  Prior period  29.1  28.4%  28.4%  Production volume/capacity      to  Product cost reduction efforts        Commodity costs        Currency rates        Higher selling prices        Product mix        Motorcycle Production Constraints        New plant start-up costs        Warranty costs        Depreciation/Tooling amortization        Sales promotional costs        Current period  28.4%  25.2%  27.2% to 27.7%  Change  -66 bps  -324 bps  Down 70 to 120 bps          By Reporting Segments  Q1 2015 Actual  Q1 2016 Actual  FY 2016 Guidance  ORV/Snowmobiles  32.7%  29.0%    Motorcycles  12.7%  15.3%    Global Adjacent Markets  23.4%  27.5%    Gross Profit Margin  28.4%  25.2%    24  IR JUNE 7 2016  2016 GROSS PROFIT MARGIN GUIDANCE  Improvement to gross profit margin %  Headwind to gross profit margin %  Neutral to gross profit margin %                                                                                                   

 

 Currency Improved Slightly in Q1; Remains Volatile  25  IR JUNE 7 2016  FOREIGN CURRENCY EXPOSURE FOR POLARIS        Foreign Currency Hedging Contracts    Currency Impact on Net Income        Notional   Avg. Exchange  Compared to Prior Year Period  Foreign Currency  CurrencyPosition  Cash FlowExposure Hedged  Amounts(US $ in Millions)  Rate of OpenContracts  FY 2016(Expectation)  Canadian Dollar (CAD)  Long  80%  $193  $0.72 to 1 CAD  Negative  Australian Dollar (AUD)  Long  60%  $22  $0.71 to 1 AUD  Negative  Euro (EUR)  Long   0%  -  -  Negative  Japanese Yen (JPY)  Short  40%  $6  120 Yen to $1  Positive  Mexican Peso (MXN)  Short  90%  $41  17 Peso to $1  Positive  F/X Impacts vs. Prior Year($ in millions)    ActualQ1 2015  ActualQ1 2016    ActualFY 2015  FY 2016 Expectations  Sales    ($32)  ($14)    ($160)  ($75)  Gross Profit    ($12)  ($17)    ($70)  ($75)  Pretax Income    ($16)  ($8)    ($70)  ($55)  Open F/X Hedging Contracts as of March 31, 2016 

 

 POLARIS FINANCIAL POSITION  26  IR JUNE 7 2016  Capital Summary March 2016  Cash Drivers      Fav/(Unfav)March 2015  Cash  $ 145.8  +32%  Debt /Capital Lease Obligations  $ 532.4  (63%)  Shareholders’ Equity  $ 930.9  8%  Total Capital  $1,463.3  23%  Debt to Total Capital   36%  (9%)  2015Operating cash flow up significantlyFactory inventory flat sequentially from Q4’15Increased share repurchases given stock priceCap Ex expected to be slightly higher than 2015Reflects Huntsville, Spirit Lake Investments  Operating Cash Flow  Strong Balance Sheet and Cash Flow Generation  ROIC*  *Defined as trailing 12 months net income divided by average total assets, minus average current liabilities  UpSignificantly    ($ millions)  ($ millions)  ($ millions)  Expectations  Q1 2016 Summary  2016 Expectations 

 

 Inventory Turns Decreasing as Inventory Value Grows at a Faster Rate than Sales  Factory Inventory & Turns  Sales  27  IR JUNE 7 2016  POLARIS SALES GROWTH & FACTORY INVENTORY  ($ millions)  Factory inventory historically growing faster than sales – major focus in 2016Inventory reduction closely tied to Retail Flow Management (RFM)Vehicle platforming, localization of suppliers, reduction of supplier lead-times, distribution network reconfigurationTied incentive compensation to factory inventory reduction targets for executives  ($ millions)  +23%  +18%  +30%  +24%  +33%  +21%  +18%  +19%  +5%  Inventory $ down significantly, Turns Improve  Expectations 

 

 ACQUISITION: TAYLOR-DUNN (3/7/16)  28  IR JUNE 7 2016  Taylor Dunn Product Line  Taylor-Dunn Overview  Leader in light-industrial and commercial vehicles2015 sales: ~1% of total Polaris (80% N.A.)~80 models, ~95% electric ~240 dealers worldwide150+ Employees; HQ and manufacturing in Anaheim, CACustomers: Industrial, warehouse, schools/universitiesBusiness expected to be neutral to 2016 earnings  Established dealer networkLarge installed baseIndustrial market presenceStrong brand recognition  Strategic Fit with Work & Transportation (W&T)  Expands Products and Channel Access to Polaris W&T Business  MSRP – $5,500 to $48,500 

 

 Snowmobiles  Motorcycles  POLARIS CUSTOMER USAGE PROFILES  IR JUNE 7 2016  Off-Road Vehicles    29                        AVERAGEAGE  50  43  44  43  47    52  56    42  INCOME  ~$100k  ~$100k  --  ~$90k  ~$90k    ~$100k - $125k  $160k    ~$90k  MALEFEMALE  91% 9%  91% 9%  98% 2%  87%13%  75%25%    90%10%  95%5%    90%10%  PRIMARYUSE  Work & PlayFarm/RanchProperty Maint.Rec/TrailHunt  Mostly PlayRec/TrailDunesProperty  Play & Work Rec/TrailPropertyFarm/Ranch  Work & PlayRec/TrailProperty Maint.Hunt  Rec/TrailHuntUtility    Cruising, Day tripsaround townCommute  Cruising, Day trips,Commute    Recreationon & off trail  MY15, except GENERAL (MY16) 

 17 In-House Manufacturing Facilities Worldwide  30  IR JUNE 7 2016  MANUFACTURING LOCATIONS                  Monterrey MEXICOSxS, Engines  Spirit Lake & MilfordIOWAMotorcycles,SxS, ACE, GEM  RoseauMINNESOTASnow, ATV, SxS  OsceolaWISCONSINEngines  BourranFRANCEGoupil  Chanas &Aix-les-BainsFRANCEAixam Mega    Cuyahoga FallsOHIO Kolpin  Riverside, CALIFORNIA Pro Armor  Shanghai, CHINAHammerhead            HuntsvilleALABAMA(2016)SxS, Slingshot  OpolePOLANDATV, SxS  JaipurINDIAEicher JV  SandpointIDAHOTimbersled      SpearfishSOUTH DAKOTAMotorcycle Paint    Anaheim, CALIFORNIA Taylor-Dunn