8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 28, 2010


POLARIS INDUSTRIES INC.
(Exact name of Registrant as specified in its charter)

Minnesota	1-11411	41-1790959
(State of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

2100 Highway 55
Medina, Minnesota 55340
(Address of principal executive offices)
(Zip Code)

(763) 542-0500
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02          Results of Operations and Financial Condition.

       On January 28, 2010, Polaris Industries Inc. (the “Company”) issued a news release announcing the Company’s fourth quarter and year-end financial results for the reporting period ended December 31, 2009.  On January 28, 2010, the Company also hosted its quarterly earnings conference call, which was accessible to the public.  A recording of the conference call will be available through the end of the business day on February 4, 2010 by dialing 800-642-1687 in the U.S. and Canada or 706-645-9291 for international calls and entering passcode 93142260, and on the Company’s website, www.polarisindustries.com.  

       A copy of the Company’s news release is furnished as Exhibit 99.1 attached hereto and a copy of the presentation materials discussed during the conference call is being furnished as Exhibit 99.2 to this Current Report on Form 8-K.  The presentation materials replace and supersede the presentation materials included as Exhibit 99.2 to the Company’s Current Report on Form 8-K furnished to the Securities and Exchange Commission (the “SEC”) on October 15, 2009 and the presentation materials included as Exhibit 99.1 to the Company’s Current Report on Form 8-K furnished to the SEC on October 26, 2009.

Item 7.01          Regulation FD Disclosure.

       The disclosures set forth in Item 2.02 above are hereby incorporated by reference into this Item 7.01.

       The information contained in this Current Report is furnished and not deemed to be filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.  The information in this Current Report shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:	January 28, 2010
		POLARIS INDUSTRIES INC.
		/s/ Michael W. Malone
		Michael W. Malone
		Vice President – Finance and
		Chief Financial Officer of Polaris Industries Inc.

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EXHIBIT INDEX

Exhibit Number	Description
99.1	News Release dated January 28, 2010 of Polaris Industries Inc.
99.2	Presentation materials dated January 28, 2010 of Polaris Industries Inc.

4

EX-99.1

Exhibit 99.1

CONTACT:
Polaris Industries Inc.
Richard Edwards, 763-542-0500

Polaris Reports 2009 Fourth Quarter and Full Year Results

Fourth Quarter Net Income increased 21% Year-over-year from Margin Expansion

Fourth Quarter and Full Year Highlights:

• Fourth quarter net income of $43.9 million, increased 21% from $36.2 million in the fourth quarter 2008, resulting in record earnings per diluted share of $1.31, up 18% from the prior year period
• Fourth quarter 2009 sales of $471.8 million were down 10% from the 2008 fourth quarter. Full year 2009 sales of $1,565.9 million, decreased 20% from full year record 2008 sales
• Full year 2009 net income of $101.0 million decreased 14% from 2008, and full year 2009 diluted earnings per share of $3.05 decreased 13% from 2008
• Gross profit margin percentage for the fourth quarter and full year 2009 improved by 450 basis points and 220 basis points, respectively
• Factory inventory decreased 19% contributing to strong cash flow and a record year end cash balance of $140.2 million. North America dealer inventories decreased 24% at year end 2009 compared to the 2008 year end
• On January 21, 2010, Polaris declared a 3% increase in the regular quarterly cash dividend to $0.40 per share per quarter, marking the 15^th consecutive year of increased dividends

MINNEAPOLIS--(BUSINESS WIRE)--January 28, 2010--Polaris Industries Inc. (NYSE:PII) today reported record net income of $1.31 per diluted share for the fourth quarter of 2009, an 18 percent increase from $1.11 per diluted share for the prior year period. Net income for the fourth quarter 2009 was $43.9 million, representing an increase of 21 percent from the prior year’s fourth quarter net income of $36.2 million. Sales for the quarter decreased 10 percent to $471.8 million, compared to last year’s fourth quarter sales of $523.6 million.

For the full year ended December 31, 2009, Polaris reported net income of $101.0 million, or $3.05 per diluted share, compared to $117.4 million, or $3.50 per diluted share, for the year ended December 31, 2008, representing a 13 percent decrease on a per diluted share basis. Sales for the full year 2009 totaled $1,565.9 million, a decrease of 20 percent compared to record sales of $1,948.3 million for the full year 2008.

“Our record fourth quarter earnings per share represent a fitting end to a challenging year for Polaris. Our team and businesses effectively balanced significant cost reductions with a relentless focus on innovation and winning the competitive battle, which enabled us to exceed expectations and position the business well for 2010. We are pleased with the retail sales and operational excellence momentum established during the fourth quarter 2009 and anticipate a return to growth in 2010,” commented Scott Wine, Chief Executive Officer of Polaris. “After a full year of weak retail sales demand across our business, we did experience improving trends throughout the second half and in the fourth quarter of 2009, largely driven by market share gains in our Off-Road Vehicle business. Our Victory motorcycle business also had strong retail sales growth and market share gains in the fourth quarter, demonstrating important progress in our plans to improve the Victory business.

“During 2009, we also expanded the gross profit margin percentage by 220 basis points despite a 20 percent decline in sales, and we were able to drive a 50 basis point improvement in net income margin to 6.5 percent for the year. Continued net margin expansion remains a key initiative for the Company for 2010 and going forward. Our fast reaction during the economic downturn and continued focus on operational excellence enabled us to support our dealers with reduced inventories and drive factory inventory down 19 percent.”

Wine continued, “Our strategic decision to drive aggressive cost reductions, while continuing to invest in the highest return opportunities, has positioned us well as for 2010. In the near-term, however, we do not anticipate a rapid recovery of the overall economic environment or the powersports industry. We expect consumer spending to remain weak throughout 2010 which will limit sales growth in both the U.S. and Europe. However, we have proven in the past that we can perform well in weak markets and difficult economies. In 2009, we again gained market share in most of our businesses, and we will continue to execute our global growth strategy and make growth happen in 2010 and beyond.”

2010 Business Outlook

Full year 2010 earnings are expected to be in the range of $3.15 to $3.30 per diluted share, an increase of three to eight percent compared to 2009 net income of $3.05 per diluted share. Full year 2010 net income is expected to increase in the range of seven to eleven percent over 2008 net income of $101.0 million. Net income is expected to increase at a higher percentage rate than diluted earnings per share as a result of an anticipated increase in the diluted shares outstanding throughout 2010 compared to 2009 due to the elimination of open market share repurchases in 2009, and the dilutive effect of an anticipated higher share price in 2010. Sales for the full year 2010 are expected to grow modestly, in the range of up one to up three percent. For the first quarter 2010, earnings are expected to be in the range of $0.45 to $0.47 per diluted share, compared to earnings of $0.26 per diluted share for the first quarter 2009, on projected sales of up one to three percent. First quarter 2009 earnings per share included a non-cash impairment charge of $9.0 million, pretax, or $0.18 per diluted share related to the Company’s investment in KTM.

Wine explained, “While our outlook reflects a steady, but muted economic recovery, Polaris has taken significant steps to position the Company well for 2010. Our balance sheet is strong with record cash balances and we continue to generate strong earnings and cash flow. Cost reduction initiatives are in place and we continue to realize significant benefits, which we believe will contribute to an expanded gross profit margin percentage and higher net income for full year 2010 over full year 2009. Our model year 2010 product introductions are being well received in the markets and, once again, the future product pipeline is full of exciting new products.”

Wine concluded, “A top priority for Polaris in 2010 will be to drive growth through the diversification of our business, while continuing to outperform and excel in our Off-Road Vehicle business. International growth will be a primary focus, as we allocate more focus and resources to our opportunities outside of the United States. We plan to expand our operational excellence initiatives, which will play a key role in our ongoing efforts to expand margins. In addition, 2010 will be an important year for our On-Road division as we accelerate our efforts to drive retail sales and profitable growth in our Victory motorcycle business. We will also accelerate growth in our new low emission vehicle product line. While we are prepared for another challenging year in the external environment, we have a solid foundation and strong momentum to deliver growth and improved results in 2010.”

Product line Sales	Fourth Quarter ended December 31,						Twelve Months ended December 31,
(in thousands)	2009		2008		Change		2009		2008		Change
Off-Road Vehicles	$	282,816	$	319,758	-12	%	$	1,021,128	$	1,305,758	-22	%
Snowmobiles		81,441		95,192	-14	%		179,238		205,257	-13	%
On-Road/Victory Motorcycles		19,139		21,847	-12	%		52,811		93,600	-44	%
Parts, Garments & Accessories		88,374		86,806	2	%		312,710		343,639	-9	%
Total Sales	$	471,770	$	523,603	-10	%	$	1,565,887	$	1,948,254	-20	%

Off-Road vehicles (“ORV”) sales during the fourth quarter 2009, which includes sales of both core ATVs (all-terrain vehicles) and RANGER™ side-by-side vehicles, decreased 12 percent from the fourth quarter 2008. This decrease reflects the ongoing weakness in the consumer retail environment, more dealers operating under the new Max Velocity Program (“MVP”), which inherently requires lower dealer inventory levels, and Polaris’ continued commitment to helping our dealers reduce their core ATV inventory. North American dealer inventories of ATVs were down significantly at year end 2009, declining 35 percent when compared to 2008 levels. North American retail sales for ORVs increased in the single digits percentage range for the 2009 fourth quarter with side-by-side retail sales increasing in the mid-teens and core ATV retail sales decreasing in the mid-single digit range for the quarter. The improvement in the retail sales trends is an indication of the acceptance in the marketplace of the Company’s new product introductions in recent years and market share gains. An example of the Company’s continued aggressive new product development is the recent introduction of the world’s first 4-seat sport side-by-side, the new Robby Gordon Edition RZR 4 released in January 2010. Sales of ORV to customers outside of North America increased 21 percent in the fourth quarter 2009, when compared to the fourth quarter 2008, primarily due to the weak US dollar and positive mix benefit as more higher priced side-by-side vehicles were shipped during the 2009 fourth quarter compared to the prior year.

Snowmobile sales decreased 14 percent for the 2009 fourth quarter compared to the fourth quarter 2008. The decrease reflects the continued weakness in the consumer retail environment.

Sales of the On-Road division, which primarily consists of Victory motorcycles, decreased 12 percent during the fourth quarter of 2009 when compared to the same period in 2008. The decrease reflects the continued weak heavyweight cruiser and touring motorcycle industry and the Company’s continued planned reduction in shipments of Victory motorcycles to dealers in North America to assist their efforts to further reduce inventory levels. North American dealer inventory of Victory motorcycles is 27 percent lower at year end 2009 compared to 2008 levels. Victory motorcycles had strong retail sales during the fourth quarter, increasing in the low thirty percent range, a reflection of the initial acceptance of the new model year 2010 motorcycles and more focused attention on growing retail sales. During the 2009 fourth quarter, Polaris continued to ship its new electric powered low emission vehicle, the Polaris Breeze™, to its new neighborhood vehicle dealer channel in master planned communities in the Sunbelt region of the U.S.

Parts, Garments, and Accessories (“PG&A”) sales increased two percent during the fourth quarter 2009 compared to the same period last year due to increased snowmobile and RANGER™ side-by-side related PG&A sales.

Gross profit as a percentage of sales was 27.3 percent for the fourth quarter of 2009, an increase of 450 basis points from 22.8 percent for the fourth quarter of 2008. Gross profit dollars increased eight percent to $128.6 million for the fourth quarter 2009 compared to $119.2 million for the fourth quarter of 2008. The increase in gross profit dollars and the 450 basis points increase in the gross profit margin percentage in the fourth quarter 2009 resulted primarily from continued product cost reduction efforts, lower commodity costs, higher selling prices and favorable currency movements.

Operating expenses for the fourth quarter 2009 decreased six percent to $63.9 million compared to $68.2 million for the fourth quarter of 2008. Operating expenses in absolute dollars for the fourth quarter 2009 decreased $4.3 million primarily due to continued operating cost control measures, which were partially offset by increased incentive compensation plan expenses in part due to the higher price of Polaris’ stock as compared to the prior year. Operating expenses as a percentage of sales were 13.6 percent for the fourth quarter 2009, compared to 13.0 percent in the fourth quarter of 2008. The increase in the operating expense percentage to sales is primarily due to the higher incentive compensation plan expenses in the fourth quarter 2009.

Income from financial services increased 20 percent to $4.8 million during fourth quarter 2009 from $4.0 million in the fourth quarter of 2008. The increase was primarily due to higher interest rates paid to Polaris Acceptance by both Polaris and its dealers during the 2009 fourth quarter.

Interest expense decreased to $0.9 million for the fourth quarter 2009, from $1.8 million for the fourth quarter 2008, due to lower interest rates and lower average borrowings on the Company’s credit facility during the 2009 fourth quarter as compared to the same period of 2008.

Non-operating other expense was $2.7 million in the fourth quarter of 2009, as compared to $2.8 million of income in the fourth quarter of 2008. The change in the 2009 fourth quarter was primarily due to the weakening U.S. dollar and the resulting effects on the Canadian dollar and other international currency hedging activities and foreign currency transactions related to the Company’s foreign subsidiaries.

The Income tax provision for the fourth quarter 2009 was recorded at a rate of 33.3 percent of pretax income compared to 35.3 percent of pretax income for the fourth quarter 2008. The lower income tax rate in the fourth quarter 2009 is primarily due to a higher amount of favorable tax events in the fourth quarter 2009 compared to the fourth quarter 2008.

Financial position and cash flow

Borrowings under the credit agreement were $200.0 million at December 31, 2009 and 2008. Cash and cash equivalents improved to $140.2 million at December 31, 2009 compared to $27.1 million for the same period last year. Factory inventory declined 19 percent to $179.3 million in the fourth quarter 2009 compared to the fourth quarter 2008.

For the year ended December 31, 2009, $193.2 million in net cash was provided by operating activities compared to $175.8 million in net cash provided by operating activities during for the full year 2008. A decrease in inventories, accounts receivable and current deferred tax assets for the 2009 full year period, offset partially by a decrease in accounts payable and accrued liabilities, were the primary reasons for the increase in the full year 2009 cash flow provided by operating activities compared to the prior year period. Net cash used for investing activities decreased to $29.7 million during the 2009 full year compared to $69.7 million in 2008, due primarily to reduced capital expenditures. Net cash flow used for financing activities was $50.4 million for full year 2009, compared to $142.2 million for 2008, primarily due to in the elimination of open market share repurchase activity in 2009. The Company paid dividends during the full year 2009 totaling $50.2 million, compared to $49.6 million for the full year 2008. The Company recently announced a three percent increase in the regular quarterly cash dividend, which represents the 15th consecutive year of Polaris increasing its dividend, effective with the 2010 first quarter dividend payment.

Conference Call and Webcast Presentation

Today at 9:00 AM (CT) Polaris Industries Inc. will host a conference call and webcast to discuss Polaris’ fourth quarter 2009 earnings results released this morning. The call will be hosted by Scott Wine, CEO, Bennett Morgan, President and COO, and Mike Malone, Vice President Finance and CFO. A slide presentation and link to the audio webcast will be posted on the Investor Relations page of the Polaris web site prior to the beginning of the conference call. To listen to the conference call by phone, dial 800-374-6475 in the U.S. and Canada, or 973-200-3967 Internationally. The Conference ID is #93142260.

A replay of the conference call will be available approximately two hours after the call for a one-week period by accessing the same link on our website, or by dialing 800-642-1687 in the U.S. and Canada, or 706-645-9291 Internationally.

About Polaris

With annual 2009 sales of $1.6 billion, Polaris designs, engineers, manufactures and markets off-road vehicles (ORVs), including all-terrain vehicles (ATVs) and the Polaris RANGER™, snowmobiles and Victory motorcycles for recreational and utility use and has recently introduced a new on-road electric powered neighborhood vehicle.

Polaris is a recognized leader in the snowmobile industry; and one of the largest manufacturers of ORVs in the world. Victory motorcycles, established in 1998 and representing the first all-new American-made motorcycle from a major company in nearly 60 years, are making in-roads into the cruiser and touring motorcycle marketplace. Polaris also enhances the riding experience with a complete line of Pure Polaris apparel, accessories and parts, available at Polaris dealerships.

Polaris Industries Inc. trades on the New York Stock Exchange under the symbol “PII,” and the Company is included in the S&P Small-Cap 600 stock price index.

Information about the complete line of Polaris products, apparel and vehicle accessories is available from authorized Polaris dealers or anytime from the Polaris homepage at www.polarisindustries.com.

Except for historical information contained herein, the matters set forth in this news release, including management’s expectations regarding 2010 sales, shipments, net income and cash flow, 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; warranty expenses; foreign currency exchange rate fluctuations; effects of the KTM relationship; environmental and product safety regulatory activity; effects of weather; commodity costs; uninsured product liability claims; uncertainty in the retail and wholesale credit markets; 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 documents filed by the Company with the Securities and Exchange Commission.

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
	For Three Months					For the Year
	Ended December 31,					Ended December 31,
	2009		2008			2009		2008
Sales	$	471,770	$	523,603		$	1,565,887	$	1,948,254
Cost of Sales		343,160		404,358			1,172,668		1,502,546
Gross profit		128,610		119,245			393,219		445,708
Operating expenses
Selling and marketing		27,769		32,985			111,137		137,035
Research and development		15,872		18,341			62,999		77,472
General and administrative		20,285		16,902			71,184		69,607
Total operating expenses		63,926		68,228			245,320		284,114
Income from financial services		4,779		3,996			17,071		21,205
Operating Income		69,463		55,013			164,970		182,799
Non-operating Expense (Income):
Interest expense		906		1,794			4,111		9,618
Impairment charge on securities held for sale		-		-			8,952		-
Other expense (income), net		2,735		(2,822	)		733		(3,881	)
Income before income taxes		65,822		56,041			151,174		177,062
Provision for Income Taxes		21,912		19,801			50,157		59,667
Net Income	$	43,910	$	36,240		$	101,017	$	117,395
Basic Net Income per share	$	1.35	$	1.13		$	3.12	$	3.58
Diluted Net Income per share	$	1.31	$	1.11		$	3.05	$	3.50
Weighted average shares outstanding:
Basic		32,526		32,112			32,399		32,770
Diluted		33,502		32,661			33,074		33,564

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
Subject to Reclassification
(In Thousands)	December 31, 2009		December 31, 2008
	(Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	140,240	$	27,127
Trade receivables, net		90,405		98,598
Inventories, net		179,315		222,312
Prepaid expenses and other		20,638		14,924
Income taxes receivable		-		4,521
Deferred tax assets		60,902		76,130
Total current assets		491,500		443,612
Property and equipment, net		194,416		215,637
Investments in finance affiliate		41,332		51,565
Investments in manufacturing affiliates		10,536		15,641
Goodwill, net		25,869		24,693
Total Assets	$	763,653	$	751,148
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable	$	75,657	$	115,986
Accrued expenses:
Compensation		55,313		56,567
Warranties		25,520		28,631
Sales promotions and incentives		67,055		75,211
Dealer holdback		72,229		80,941
Other		38,748		42,274
Income taxes payable		6,702		3,373
Current liabilities of discontinued operations		1,850		1,850
Total current liabilities		343,074		404,833
Long term income taxes payable		4,988		5,103
Deferred income taxes		11,050		4,185
Borrowings under credit agreement		200,000		200,000
Total liabilities	$	559,112	$	614,121
Shareholders’ Equity:
Preferred stock $0.01 par value, 20,000 shares authorized, no shares issued and outstanding		—		—
Common stock $0.01 par value, 80,000 shares authorized, 32,648 and 32,492 shares issued and outstanding	$	326	$	325
Additional paid-in capital		—		—
Retained earnings		201,391		140,559
Accumulated other comprehensive income (loss), net		2,824		(3,857	)
Total shareholders' equity	$	204,541	$	137,027
Total Liabilities and Shareholders' Equity	$	763,653	$	751,148

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Subject to Reclassification	For the Years Ended
(In Thousands)	December 31,
(Unaudited)	2009			2008
Operating Activities:
Net income	$	101,017		$	117,395
Adjustments to reconcile net income to net cash provided by operating activities:
Noncash impairment charge on securities held for sale		8,952			—
Depreciation and amortization		64,594			66,112
Noncash compensation		10,226			18,558
Noncash income from financial services		(4,021	)		(4,604	)
Noncash loss from manufacturing affiliates		382			157
Deferred income taxes		22,092			(966	)
Changes in current operating items:
Trade receivables		8,192			(15,714	)
Inventories		42,997			(3,970	)
Accounts payable		(40,329	)		25,941
Accrued expenses		(24,759	)		(7,469	)
Income taxes payable		7,735			(9,504	)
Prepaid expenses and others, net		(3,877	)		(9,730	)
Net cash provided by continuing operations		193,201			176,206
Net cash flow used for discontinued operations		-			(452	)
Net cash provided by operating activities		193,201			175,754
Investing Activities:
Purchase of property and equipment		(43,932	)		(76,575	)
Investments in finance affiliate, net		14,254			6,840
Net cash (used for) investing activities		(29,678	)		(69,735	)
Financing Activities:
Borrowings under credit agreement		364,000			786,000
Repayments under credit agreement		(364,000	)		(786,000	)
Repurchase and retirement of common shares		(4,556	)		(107,167	)
Cash dividends to shareholders		(50,177	)		(49,602	)
Tax effect of proceeds from stock based compensation exercises		(410	)		1,731
Proceeds from stock issuances under employee plans		4,733			12,865
Net cash (used for) financing activities		(50,410	)		(142,173	)
Net increase (decrease) in cash and cash equivalents		113,113			(36,154	)
Cash and cash equivalents at beginning of period		27,127			63,281
Cash and cash equivalents at end of period	$	140,240		$	27,127
Supplemental Cash Flow Information
Interest paid on debt borrowings	$	3,966		$	9,614
Income taxes paid	$	29,039		$	70,205

EX-99.2

Exhibit 99.2

Polaris Industries Inc. 4th Quarter & Full-Year 2009 Earnings Results January 28, 2010

Other Placeholder: 1 Safe Harbor Except for historical information contained herein, the matters set forth in this document, including but not limited to management’s expectations regarding 2010 sales, shipments, net income and cash flow, 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; warranty expenses; foreign currency exchange rate fluctuations; effects of the KTM relationship; environmental and product safety regulatory activity; effects of weather; commodity costs; uninsured product liability claims; uncertainty in the retail and wholesale credit markets; 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 2008 annual report and Form 10-K filed by the Company with the Securities and Exchange Commission.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.

Polaris Industries Inc. 4th Quarter & Full-Year 2009 Earnings Results Scott Wine CEO

Q4 2009 Net Income and EPS  Diluted EPS   $1.11  $1.31  +18%  Net Income  ($ in millions) $36.2 $43.9 +21% 2008 2009 Quality earnings growth driven by solid execution Net Income growth exceeds EPS due to share count dilution  Record Quarterly EPS

22.8% 27.3% +450 bpts 2009 2008    Q4 2009 Margins Gross profit margins improvement broad based Cost down, pricing, currency Strong Translation of Gross Margin expansion to Net Income   Net Income as a Percent of Sales  Gross Margins  Gross Margin  Op Expense  FinancialServices  Interest Expense  Non-Op Expense  Income Taxes  6.9%  9.3  2008  2009  Margin Expansion Remains Ongoing Priority 4.5% -0.5% 0.3% 0.1% -1.1% -0.9%

Q4 2009 Sales  Fourth Quarter 2008  $523.6  $-36.9  $-13.8  $-2.7  $1.6  $471.8  Total Company  Total Company  % Change in Total Company Sales  Sales decline of 10% less than previous quarters of 2010ORV sales down 12% International sales up 18% Sales to dealers below retail  -15% 2% 3% Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q3-09 Q4-09

North American Retail Sales Polaris N.A. retail sales performed better than expectations Side-by-side and Victory retail sales increased significantly in Q4 2010 Polaris retail sales projected to remain slightly negative Expect to once again outperform the industry 0% (percentage change from prior year) -12% -20% -23% -22% -17% -4% Snow Vic ORV TOTAL

Full Year 2009 Net Income and EPS  Diluted EPS   $3.50  $3.05  -13%  Net Income  ($ in millions) $117.4 $101.0 -14% 2008 2009   Results exceeded Company expectations Earnings down less than sales on strong gross margin expansion Earnings included $9.0 million, pre-tax, or $0.18 per share charge in Q1 ‘09

Full Year 2009 Sales  Full Year 2009  $1,948.3  $-284.6  $-26.0  $-40.7  $-30.9  $1,565.9  2008 Total Company  2009 Total Company  % Change in Total Company Sales  Sales declined in every business unit and every regionContinued ATV declines drove majority of ORV declineMilitary business up 51% Canada best performing major market, down 12% -27% 8% -1% -20%

2009 Financial Metrics Solid Results Despite Sales Decline 2009 Actual Var to ‘08 Sales $1,566 -20% Net Income $101.0 -14% Gross Profit % 25.1% +220 bpts Op Profit % 10.5% +110 bpts Net Income % 6.5% +50 bpts Cash Flow %  to Net Income 191% +41% pts Shareholder Return 60% +98% pts

2009 Investments Created ORV Structure ATVs and Side-by-sides combined  Created On-Road DivisionVictory investmentsLaunched LEV businessAdded VP Global New Market DevelopmentGMs in EMEA and ChinaVP of Business DevelopmentStrengthened Balance Sheet Adjacency investments on-track and growingMilitary and BobcatInnovation Leadership Confirmed 34 New Products Introduced Polaris 2009:  Delivered Results AND Invested in our Future

Polaris Industries Inc. 4th Quarter & Full-Year 2009 Earnings Results Bennett Morgan President & COO

Off-Road Vehicle Division  Polaris Sales ($000’s)  N.A. Off-Road Vehicle Industry  $1,306  -22% $1,021  Flat to up slightly  -25%  -10 to -15%  2010 projection 2009 estimate 2010 guidance 2008 2009 SXS ATV Robby Gordon Edition RZR 4 2009 SummaryGained market share in ATVs & SxSLaunched over 25 new productsSuccessfully merged ATVs and SxS- realized synergies 2010 ObjectivesBuild on Retail momentumGrowth from Adjacencies, Int’l and BobcatSuccessfully launch new products- RZR 4 + othersGain market share again Strong Market Share Gains in 2009

Adjacencies – Military / Bobcat   Polaris Military Sales ($000’s)  Military Strong growth continued Expanded Margins Expanded customer base  Expand product line in 2010 +51%  Up 20% to 30%  guidance  +42%  ATV deployed in Afghanistan  Bobcat Strategic Alliance On track to source Bobcat utility Vehicles in  2H 2010 Co-developed product planned for the future (Gp:) +   Expected Sales Trends from Bobcat Alliance  2010 2011 2012 expectations  Significant Growth Opportunity

Snowmobile Division  Polaris Sales ($000’s)  $205.3  -13%  $179.2  Down slightly to up slightly  -10%  2008 2009 2010 projection  Polaris RUSH™   2010 guidance  N.A. Snowmobile Industry Sales  2009 Summary RUSH™ named Snowmobile of the Year Industry weaker than expected Dealer & Factory Inventory at acceptable levels Warranty was disappointing Modest Market share decline  2010 Objectives Industry-leading customer satisfaction Flawless new product launch in March Grow market share Continue to improve profitability  -12%  Focus on Customer Experience

On-Road Division – Victory  Sales ($000’s)  $93.6  -44% $52.8  Up 50%+  2010 guidance 2009 2008 2009  2009 Summary Industry retail sales very weak Market share gains in International & Canada Industry leading quality – 6 years straight Q4 retail sales up significantly Reduced # of models by 75%Cross Roads/Cross Country well received Expanded Victory team  2010 Objectives Create demand in North America – grow market share Realign cost structure Expand Globally Improve profitability  -10% to -15%  Q1 2009  Q2 2009  Q3 2009  Q4 2009  Full Year 2010  2010 guidance  Industry  Victory  N.A. Motorcycle Industry 1400cc+ and Victory Retail Sales  Regain Traction in 2010  FY 2009

On-Road Division – LEV  N.A. LEV Industry  Up mid  single digits  -23%  2010 projection  2009 estimate 2008  2009 Summary Launched 1st electric low emission vehicle Breeze™ well received Signed 10 dealers to date Learning the business  2010 Objectives Continue aggressive expansion Expand product line Grow profitability  Electric Vehicles Category Offers Incremental Growth

PG&A  Polaris Sales ($000’s)  $343.6  -9%  $312.7  Similar to overall Company Growth  2010 guidance  2009 PG&A Revenue by Business Unit  2009 PG&A Revenue by Product Category  Accessories 41%  2009 Summary Sales outperformed company Now 20% of Polaris sales Expanded margins Remains highest margin product line Productivity improved 15% in 2009 200+ MY ’10 introduction of new accessories   2010 Objectives Grow sales More focus on installed base Continue innovation focus Grow PG&A adjacencies   Grow While Maintaining / Expanding Margins Snow 20% Other 8% Victory 5% Off-Road Vehicles 67% Parts 55% Accessories 41% Apparel 4%

International Division  Polaris Sales ($000’s)  $304.2  -17% $252.4  Up 10% to 15% Growth  2010 guidance 2009 2008  2009 Revenue by Geography  2009 Revenue by Business Unit  2009 Summary Gained share in ORV in EMEA  Sales up 18% in Q4 2009 – currencies helpful Added GM in ChinaInitiated plan to enter Brazilian market   2010 ObjectivesGrow sales Further Strengthen Core EMEA business Develop new markets – China, Brazil Expand Victory Global distribution  Goal: >25% of Total Company Sales in 3-5 Years   Aus/NZ 12% Asia 1% Latin America 7% ME / Africa 8% Europe 72%  Snow 30.7 12% Off-Road Vehicles 164.1 65% Victory 10.9 4% PG&A 46.8 19% Total 252.5 100%

Operational Excellence Results – Quality, Costs & Speed  Cost - Gross Profit Margin Expansion  Up to +100 bpts  Guidance  22.1%  22.9%  25.1%  MVP business model in 50% of N.A. ORV dealers – integration progressing well New product development cycle time reduced again Product Cost reduction through value engineering a home run in 2009 Warranty expense higher than planned due to quality missteps – improvement expected Dealer count reduction was approximately 3% in 2009, expect low-single digits decline again in 2010  Creating Sustainable Competitive Advantage  +220 bpts  North American Dealer Count snowmobiles victory Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 2000 1600 1200 800 400 0

Operational Excellence Results - Inventories  Dealer inventory improved 24% from 2008 Lowest level since 1999 We desire further reductions in Core ATVs and motorcycles MVP Dealers realizing lower inventories at sustainable levels  Down 19% and $43 million from 2008 Lowest factory inventory in 5 years Additional progress expected in 2010  N.A. Dealer Inventory  Worldwide Factory Inventory  Healthier Distribution Channel and Significant Cash Flow Generation 2006 2007 2008 2009 -9% -10% -5% -24% -14% -5% 2% -19%

Polaris Industries Inc. 4th Quarter & Full-Year 2009 Earnings Results Mike Malone V.P. Finance and CFO

2010 Full Year Guidance   Product Line Sales    - Off-Road Vehicles Approximately flat to up slightly   - Snowmobiles Down slightly to Up slightly   - On-Road Vehicles Up over 50%   - PG&A Similar to overall company growth   Total Company Sales Up +1% to +3% Gross Margins Up to 100 bpts improvement Operating expenses Up in $ and % of sales Income Taxes In the range of 33.0% to 33.5% of pretax income Net Income Up 7% to 11% EPS, Diluted $3.15 - $3.30 (+3% to +8%) Share Count Increase throughout 2010 - similar trend to Q4 2009

Gross Profit Margin Percentage Trends Flexible variable cost structure and cost reduction momentum drives gross margin expansion    Q4 2009  "Full Year 2009"  "Guidance 2010"   Prior Period  22.8%  22.9%  25.1% Production volume adjustments   Product cost reduction efforts   Commodity costs   Currency rates   Higher selling prices  Product mix   Warranty costs   Tooling amortization  Sales promotional costs  Current period  27.3%  25.1%  Up to 26.1%     Change  +450 bpts  +220 bpts  Up to +100 bpts        Improvement to gross margin %      Impairment to gross margin %      Neutral to gross margin %

Financial Services Income   2009 wholesale credit income from PA joint venture = $13.7 million, up 3% 2009 retail credit income $1.1 million, down 81%, but now stabilized Retail credit approval rates and penetration rates stabilized  Financial Services Income by category   Retail Portfolio – HSBC, GE & Sheffield combined  Penetration Rate   Approval rate  53%  Q4 2009  50%  32%  39%  51%  31%  $17.1  $21.2  $ in millions  Income similar to 2009  2010 Guidance  54%  31% Q4 2008 Q4 2009

Balance Sheet and Liquidity Profile   $ In millions (except per share data) 2009 Fav (Unfav) 2008  2010 Guidance Total Debt – ending $200.0 ─  $200.0 Net Debt - ending (debt less cash balances) $59.8 $113.1  Improving again Credit Facility (expires December 2011) $450.0     –   $450 Average debt outstanding $268.1 $14.5  Lower than 2009 YE Debt Interest Rate (variable) 0.79% (0.02%)  Increase in 2H 2010 Factory Inventory $179.3 $43.0  Slightly lower than 2009 Capital Expenditures $43.9 $32.6  $50 to $55 Depreciation and amortization $64.6 $1.5  $65 to $70 Operating cash flow $193.2 $17.4  increase modestly Stock buyback $4.6 $102.6   Minimal open market repurchases Dividend $1.56 per share $0.04 per share  $1.60 per share (+3%)

First Quarter 2010 Guidance   Industry retail sales demand trends are expected to decline again in 2010 Polaris expects to gain market share Q1 2009 included a $0.18 EPS non-cash impairment charge on KTM investment Share count is expected to increase  - similar trend to Q4 2009  Total Company Sales (in millions)  Diluted EPS (in millions)  $312.0  Up 1% to 3%  Actual  Guidance  $0.26  $0.45 to $0.47  Up  73% to 81%  2009 Actual  2010 Guidance

Polaris Industries Inc.4th Quarter & Full-Year 2009 Earnings Results Scott WineCEO

What to Expect in 2010  Conservative outlook for powersports industry Double digit declines in NA & EMEA, better in BRIC Increased focus on growth International expansion gains traction Military, Bobcat, LEV drive adjacency growth Acquisition activity will increase Victory progress accelerates Margin expansion continues Operational Excellence becomes standard Consistent Strategy; Expect Return to Growth

Polaris Industries Inc.Thank you. Q & A