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): April 21, 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 April 21, 2010, Polaris Industries Inc. (the “Company”) issued a press release announcing the Company’s first quarter financial results for the reporting period ended March 31, 2010.  On April 21, 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 April 28, 2010 by dialing 800-642-1687 in the U.S. and Canada or 706-645-9291 for international calls and entering passcode 50080804, and on the Company’s website, www.polarisindustries.com/irhome.

A copy of the Company’s press 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.  

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.

Item 9.01       Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press Release dated April 21, 2010 of Polaris Industries Inc.
99.2	Presentation materials dated April 21, 2010 of Polaris Industries Inc.

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.

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SIGNATURES

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:	April 21, 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	Press Release dated April 21, 2010 of Polaris Industries Inc.
99.2	Presentation materials dated April 21, 2010 of Polaris Industries Inc.

4

EX-99.1

Exhibit 99.1

Polaris Reports First Quarter 2010 Results; EPS Increased 127% on 16% Sales Growth

Performance Driven by Retail Sales Growth and Market Share Gains in Off-Road Vehicles, Victory and International and Improved Gross Margins

First Quarter Highlights:

• Sales grew 16% to $361.7 million from last year’s first quarter
• Net income increased 127% to $0.59 per diluted share, representing a first quarter record for Polaris
• Gross margin percentage for the first quarter 2010 increased 170 basis points to 26.2% due to lower product cost, higher selling prices and favorable currency movements
• Raising guidance for full year 2010 earnings to a range of $3.48 to $3.60 per diluted share, a 14% to 18% increase over full year 2009 on expected full year 2010 sales growth of 8 % to 11%
• The Polaris Board of Directors has approved the regular quarterly cash dividend of $0.40 per share payable May 17, 2010 to shareholders of record as of May 3, 2010

MINNEAPOLIS--(BUSINESS WIRE)--April 21, 2010--Polaris Industries Inc. (NYSE:PII) today reported record first quarter net income of $19.8 million, or $0.59 per diluted share for the quarter ended March 31, 2010. By comparison, 2009 first quarter net income was $8.5 million, or $0.26 per diluted share, which included an $0.18 per diluted share non-cash impairment charge on the Company’s investment in KTM. Sales for the first quarter 2010 totaled $361.7 million, an increase of 16 percent from last year’s first quarter sales of $312.0 million.

“Our first quarter results demonstrate that the investments we made throughout the economic downturn have prepared us well to accelerate growth in 2010. Our first quarter sales and earnings growth exceeded our expectations driven by solid execution of our long-term strategy, which includes successfully developing and marketing innovative new products and improving operational efficiencies across our business,” commented Scott Wine, Polaris’ Chief Executive Officer. “Total Company retail sales to consumers in North America grew nine percent during the first quarter, as we saw strong demand for our Off-Road vehicles and Victory motorcycles. Our international sales to customers outside of North America grew 41 percent in the quarter, with surprising strength in Europe and several developing markets. Polaris achieved strong market share improvements in ORV and Victory Motorcycles as our retail sales performance was notably stronger than overall industry retail sales, which remained weak through most of the first quarter.”

Wine continued, “Profitable growth is an important objective for Polaris, and we leveraged operational excellence to ensure that margin expansion accompanied our strong 16 percent organic growth in the quarter. The gross margin expansion realized during the quarter was the result of a number of operational initiatives including the utilization of our world-class engineering team to reduce product costs and our Max Velocity Program, which is enabling us to work with our dealers to drive retail sales and market share growth more efficiently.”

Wine concluded, “While we still have concerns about the strength of the economic recovery and our core powersports industry, I am confident in the ability of this Polaris team to capitalize on our investments in the development of innovative, high quality products, our international expansion efforts and the many exciting new market adjacencies that we are pursuing. We fully expect to deliver consistent long-term, sustainable growth and profitability for all stakeholders.”

2010 Business Outlook

Based on Polaris’ performance during the 2010 first quarter and expectations for the remainder of the year, the Company is increasing its full year sales and earnings guidance for 2010. The Company now expects full year 2010 earnings to be in the range of $3.48 to $3.60 per diluted share, an increase of between 14 and 18 percent when compared to earnings of $3.05 per diluted share for the full year 2009. Sales for the full year 2010 are now expected to grow in the range of 8 to 11 percent. For the second quarter of 2010, the Company expects total sales to increase in the range of 14 to 17 percent primarily due to continued strength in ORV, Victory motorcycles and international retail sales to consumers. Second quarter 2010 earnings are expected to be in the range of $0.63 to $0.67 per diluted share, an increase of 19 to 26 percent, compared to earnings of $0.53 per diluted share for the second quarter of 2009.

First Quarter Performance Summary (in thousands except per share data)
	Three Months ended March 31,
Product line Sales	2010			2009			Change
Off-Road Vehicles	$	250,403		$	215,461		16	%
Snowmobiles		5,554			8,166		-32	%
On-Road/Victory Motorcycles		25,353			13,836		83	%
Parts, Garments & Accessories		80,398			74,561		8	%
Total Sales	$	361,708		$	312,024		16	%
Gross profit	$	94,914		$	76,434		+24	%
Gross profit as a % of sales		26.2	%		24.5	%	+170 bpts
Operating expenses	$	67,234		$	58,047		+16	%
Operating expenses as a % of sales		18.6	%		18.6	%	―
Operating Income	$	31,936		$	22,791		+40	%
Operating Income as a % of sales		8.8	%		7.3	%	+150 bpts
Net income	$	19,771		$	8,458		+134	%
Net income as a % of sales		5.5	%		2.7	%	+280 bpts
Diluted net income per share	$	0.59		$	0.26		+127	%

Off-Road vehicles (“ORV’) sales during the first quarter 2010, which includes sales of both core ATVs (all-terrain vehicles) and RANGER™ side-by-side vehicles, increased 16 percent from the first quarter 2009. This increase reflects significant market share gains for both ATVs and side-by-sides driven by new product offerings including the recently introduced RANGER RZR 4, the Company’s first 4-seat sport side-by-side. The Company’s increase in ORV retail sales and market share also benefited from the success of its go-to-market business model called Max Velocity Program (“MVP”), which is currently in place with approximately 50 percent of the North American ORV dealer volume. North American retail sales to consumers for ORVs increased nearly 20 percent for the 2010 first quarter from the first quarter last year, with side-by-side vehicle retail sales increasing significantly while core ATV retail sales were about flat. Retail sales trends improved sequentially each month during the first quarter of 2010. North American dealer inventories of ORVs were down significantly during the 2010 first quarter, declining 34 percent when compared to 2009 first quarter levels. Sales of ORV to customers outside of North America increased over 40 percent in the first quarter 2010 when compared to the first quarter 2009, due to market share gains in both ATVs and side-by-side vehicles, positive mix benefit as more higher priced side-by-side vehicles were sold, higher selling prices and positive currency benefit from the weaker US dollar.

Snowmobile sales totaled $5.6 million for the 2010 first quarter compared to $8.2 million for the first quarter of 2009. The first quarter is historically a seasonally low quarter for snowmobile shipments. The decrease in sales was primarily the result of timing of shipments in the 2010 first quarter compared to the first quarter last year. Season-end North American dealer inventories of snowmobiles at March 31, 2010 are at acceptable levels. During the quarter the Company introduced 11 new model year 2011 snowmobiles with industry-leading innovation and technology including additional models with the award winning PRO-RIDE™ progressive rear suspension, reduced vehicle weight, improved durability and increased horsepower.

Sales of the On-Road division, which primarily consists of Victory motorcycles, increased 83 percent during the first quarter of 2010 when compared to the same period in 2009. This marks the 2^nd straight quarter of market share gains and retail sales growth for Victory and reflects the acceptance of the new model year 2010 motorcycles including the new Cross Country™ and Cross Roads™ touring models. The heavyweight cruiser and touring motorcycle industry remained weak during the quarter, but Victory continued to benefit from aggressive and innovative efforts to accelerate growth. Victory motorcycles had strong retail sales during the 2010 first quarter, increasing in the mid-teens percent range in North America compared to the first quarter last year, resulting in market share gains for the quarter. North American dealer inventory of Victory motorcycles declined 25 percent in the 2010 first quarter compared to 2009 comparable levels. During the 2010 first quarter, Polaris added additional dealers for its electric powered low emission vehicle, the Polaris Breeze™, to further penetrate the master planned community market segment.

Parts, Garments, and Accessories (“PG&A”) sales increased eight percent during the first quarter 2010 compared to the same period last year primarily due to increased RANGER™ side-by-side vehicle related PG&A sales.

Gross profit as a percentage of sales was 26.2 percent for the first quarter of 2010, an increase of 170 basis points from 24.5 percent for the first quarter of 2009. Gross profit dollars increased 24 percent to $94.9 million for the first quarter of 2010 compared to $76.4 million for the first quarter of 2009. The increase in gross profit dollars and the 170 basis points increase in the gross profit margin percentage in the first quarter 2010 resulted primarily from continued product cost reduction efforts, higher selling prices and favorable currency movements compared to the first quarter of last year.

Operating expenses for the first quarter 2010 increased 16 percent to $67.2 million or 18.6 percent of sales compared to $58.0 million or 18.6 percent of sales for the first quarter of 2009. Operating expenses in absolute dollars for the first quarter 2010 increased primarily due to the increase in incentive compensation plan expenses that were temporarily reduced last year during the extremely uncertain economic environment and the current higher stock price and higher expected profitability for 2010.

Income from financial services was $4.3 million during first quarter 2010 compared to $4.4 million in the first quarter of 2009.

The non-cash Impairment charge on securities held for sale was $0.0 for the first quarter 2010. In the first quarter 2009 the Company recorded a $9.0 million, pretax, or $0.18 per diluted share impairment charge on securities held for sale. During the first quarter 2009, the Company determined that the decline in the market value of the KTM shares owned by the Company was other than temporary and therefore recorded the decrease in the fair value of the investment as a charge to the income statement as of March 31, 2009.

Financial position and cash flow

Net cash provided by operating activities totaled $3.8 million for the first quarter ended March 31, 2010, a significant improvement from cash used for operating activities totaling $33.1 million in the first quarter of 2009. Higher net income and lower working capital requirements for the 2010 first quarter compared to the first quarter last year are the primary reasons for the increased cash provided by operating activities. Borrowings under the credit agreement were $200.0 million at March 31, 2010 compared to $244.0 million at March 31, 2009. Cash and cash equivalents improved to $124.4 million at March 31, 2010 compared to $17.9 million for the same period last year. The Company’s debt-to-total capital ratio was 48 percent at March 31, 2010, compared to 64 percent at the same time last year.

Dividend declared

The Polaris Board of Directors has authorized the payment of a regular quarterly cash dividend of $0.40 per share payable May 17, 2010 to shareholders of record as of May 3, 2010.

Conference Call and Webcast Presentation

Today at 9:00 AM (CT) Polaris Industries Inc. will host a conference call and webcast to discuss Polaris’ 2010 first quarter 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 at www.polarisindustries.com/irhome approximately 30 minutes before the conference call begins.

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 #50080804.

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, net income per share 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; 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 documents 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.

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
	For Three Months
	Ended March 31,
	2010		2009
Sales	$	361,708	$	312,024
Cost of Sales		266,794		235,590
Gross profit		94,914		76,434
Operating expenses
Selling and marketing		30,098		27,328
Research and development		18,738		16,600
General and administrative		18,398		14,119
Total operating expenses		67,234		58,047
Income from financial services		4,256		4,404
Operating Income		31,936		22,791
Non-operating Expense (Income):
Interest expense		699		1,051
Impairment charge on securities held for sale		-		8,952
Other expense (income), net		180		(3	)
Income before income taxes		31,057		12,791
Provision for Income Taxes		11,286		4,333
Net Income	$	19,771	$	8,458
Basic Net Income per share	$	0.60	$	0.26
Diluted Net Income per share	$	0.59	$	0.26
Weighted average shares outstanding:
Basic		33,069		32,266
Diluted		33,750		32,559

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
Subject to Reclassification
(In Thousands)	March 31, 2010		March 31, 2009
Assets
Current Assets:
Cash and cash equivalents	$	124,395	$	17,895
Trade receivables, net		91,335		57,581
Inventories, net		180,316		245,600
Prepaid expenses and other		18,682		12,503
Income taxes receivable		-		4,278
Deferred income taxes		61,667		75,894
Total current assets		476,395		413,751
Property and equipment, net		189,433		214,298
Investments in finance affiliate		37,422		47,741
Investments in manufacturing affiliates		9,792		11,466
Goodwill and intangible assets, net		27,890		24,540
Total Assets	$	740,932	$	711,796
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable	$	89,722	$	104,823
Accrued expenses:
Compensation		39,190		22,083
Warranties		22,344		24,244
Sales promotions and incentives		65,805		72,263
Dealer holdback		48,068		53,666
Other		38,800		36,919
Income taxes payable		3,562		7,377
Current liabilities of discontinued operations		1,850		1,850
Total current liabilities		309,341		323,225
Long term income taxes payable		5,087		4,938
Deferred income taxes		14,143		1,966
Borrowings under credit agreement		200,000		244,000
Total liabilities		528,571		574,129
Shareholders’ Equity:
Total shareholders' equity		212,361		137,667
Total Liabilities and Shareholders' Equity	$	740,932	$	711,796

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Subject to Reclassification	For the Three Months Ended
(In Thousands)	March 31,
(Unaudited)	2010			2009
Operating Activities:
Net income	$	19,771		$	8,458
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Noncash impairment charge on securities held for sale		—			8,952
Depreciation and amortization		16,037			15,089
Noncash compensation		3,559			2,334
Noncash income from financial services		(1,204	)		(1,135	)
Noncash loss from manufacturing affiliates		643			63
Deferred income taxes		2,466			(1,984	)
Changes in current operating items:
Trade receivables		(930	)		41,017
Inventories		(1,001	)		(23,288	)
Accounts payable		14,065			(11,163	)
Accrued expenses		(44,658	)		(74,449	)
Income taxes payable/receivable		(3,041	)		4,082
Prepaid expenses and others, net		(1,901	)		(1,093	)
Net cash provided by continuing operations		3,806			(33,117	)
Net cash flow used for discontinued operations		-			-
Net cash provided by (used for) operating activities		3,806			(33,117	)
Investing Activities:
Purchase of property and equipment		(8,126	)		(13,666	)
Investments in finance affiliate, net		5,114			4,960
Acquisition of business, net of cash acquired		(2,500	)		-
Net cash (used for) investing activities		(5,512	)		(8,706	)
Financing Activities:
Borrowings under credit agreement		-			152,000
Repayments under credit agreement		-			(108,000	)
Repurchase and retirement of common shares		(27,166	)		(282	)
Cash dividends to shareholders		(13,096	)		(12,424	)
Proceeds from stock issuances under employee plans		22,125			1,691
Tax effect of proceeds from stock based compensation exercises		3,998			(394	)
Net cash (used for) provided by financing activities		(14,139	)		32,591
Net decrease in cash and cash equivalents		(15,845	)		(9,232	)
Cash and cash equivalents at beginning of period		140,240			27,127
Cash and cash equivalents at end of period	$	124,395		$	17,895

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

EX-99.2

Exhibit 99.2

0 Polaris Industries Inc. First Quarter 2010 Earnings Results April 21, 2010

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; 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 2009 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.

2 Polaris Industries Inc. 1st Quarter 2010 Earnings Results Scott Wine CEO

3 Q1 2010 Net Income and EPS Diluted EPS $0.26 $0.59 +127% Net Income ($ in millions) $8.5 $19.8 +134% 2009 2010 2009 2010 Increased net income and EPS driven by sales growth & margin expansion Net margins improved 280 basis points Q1 2009 included an $0.18 per share impairment charge – KTM investment Record First Quarter Net income and EPS

4 Q1 2010 Sales First Quarter 2010 $312.0 $34.9 $-2.6 $11.5 $5.8 $361.7 2009 Total Company 2010 Total Company ORV Snow Victory/LEV PG&A % Change in Total Company Sales Volume 6% Product mix and price 6% Currency 4% 16% Sales growth outperformed Company expectations - ORV up 16% - International up 41% - Victory/On-Road up 83%  - PG&A up 8% Gained significant market share in all areas except snowmobiles  Making Growth Happen +16%

5 North American Retail Sales Polaris N.A. retail sales outperformed expectations - Increasing full year retail sales expectations Side-by-side, Victory and International retail sales up significantly in Q1 Expect to continue to outperform the industry -12% -20% -23% -22% -17% -4% 9% Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Snow Vic ORV TOTAL 0% (percentage change from prior year) Significant Improvement

6 Strategic Progress Continues… Best in Powersports PLUS 5-8% organic growth ORV Market Share Victory Growth MVP Expansion Growth through Adjacencies $100 - 300M growth Swissauto Military Acquisition Funnel Global Market Leadership >25% of Polaris Revenue European Share China Progress Partnerships Operations is a Competitive Advantage Op Ex drives >200bpts Op Margin improvement Inventory Productivity Quality Strong Financial Performance Sustainable, Profitable Growth  Net Income Margin >7.5% Sales Growth Margin Expansion Record Q1 EPS

7 Full Year 2010 Guidance Polaris sales accelerating both domestically & internationally Net income dollars expected to be up 19% to 22% - Net income margin improvement accelerating Total Company Sales (in millions) Diluted EPS (in millions) Up 8% to 11% 2009 Actual $1,565.9 2010 Guidance Up 14% to 18% $3.48 to $3.60 2009 Actual $3.05 2010 Guidance Solid Execution

8 Polaris Industries Inc. 1st Quarter 2010 Earnings Results Bennett Morgan President & COO

9 Off-Road Vehicle Division Polaris Sales ($000’s) $215.5 +16% $250.4 Q1 2009 Q1 2010 ATV SXS FY 2009 FY 2010 guidance -22% $1,021.1 Up 9% to 12% Full year 2010 sales guidance increased: Up 9% to 12% Gained significant ORV market share in Q1 2010 - Both ATVs and Side-by-Sides up - New RANGER RZR 4 selling well North America dealer inventory down 34% Strong Market Share Gains in Q1 Sportsman 850 Touring Robby Gordon Edition RZR 4

10 Snowmobile Division Polaris Sales ($000’s) $8.2 -32% $5.6 Q1 2009 Q1 2010 FY 2009 FY 2010 guidance -13% $179.3 About Flat N.A. Snowmobile Industry Sales -22% -10% Season-end 3/31/09 Season-end 3/31/10 Projection 3/31/11 Polaris’ retail sales underperformed Industry retail for season ending March 31 weaker than expected Introduced 11 new MY ’11 models Expanded RUSH suspension technology; new 800 RMK for the mountains Consumer pre-season snowchecks double last year Early dealer orders for MY 2011 snowmobiles encouraging Focus on Customer Experience & Quality Improvement New MY ‘11 Polaris 800 PRO-RMK

11 On-Road Division – Victory / LEV Sales ($000’s) $13.8 +83% $25.4 Q1 2009 Q1 2010 FY 2009 FY 2010 guidance -44% $52.8 Up 50%+ N.A. Motorcycle Industry 1400cc+ and Victory Retail Sales Q4 2009 Q1 2010 Full Year Industry Victory FY 2009 FY 2010 Expectations Solid growth expected -10% to 15% -20% + mid-teens % Q1 Victory retail sales continued positive momentum N.A. Industry remained weak – down 20% in Q1 New marketing campaign “Fuel It” tracking well Dealer inventory down 25% from Q1 2009 LEV increased distribution points Strong market share gains – particularly in Touring – Cross Bikes Victory Crossroads 2010 V-Twin“Bike of the Year” Gaining Traction

12 PG&A Polaris Sales ($000’s) $74.5 +8% $80.4 Q1 2009 Q1 2010 FY 2009 FY 2010 guidance -9%$312.7 Up mid-single digits  Q1 2010 PG&A Revenue by Business Unit Off-Road Vehicles 60% Snow 29% Other 7% Victory 4% Q1 2010 PG&A Revenue by Product Category Parts 59% Accessories 40% Apparel 1% Full Year 2010 sales guidance increased due to ORV related growth Accessories up 28% in Q1 - primarily side-by-sides International PG&A sales up 31% PG&A Inventory down 20% from Q1 last year Maintain High Quality and Productivity

13 International Division Polaris Sales ($000’s) $53.4 +41% $75.1 Q1 2009 Q1 2010 FY 2009 FY 2010 guidance -17% 252.4 Up 20% to 25% Q1 2010 Revenue by Geography Europe 71% Aus/ NZ 11% ME / Africa 10% Latin America 7% Asia 1% Q1 2010 Revenue by Business Unit Off-Road Vehicles  65% PG&A 20% Snow 9% On-Road Vehicles 6% Full year 2010 sales guidance increased: Up 20% to 25%Gained share in ORV and snowmobiles in Q1 10% of Q1 sales increase from favorable currency movements Market development in BIC countries & Victory global expansion progressing well Goal: >25% of Total Company Sales in 3-5 Years

14 Operational Excellence Results North American Polaris Dealer Inventory Levels Down 29% from Q1 2009 Down 13% sequentially from Q4 2009 Victory down 25% from Q1 2009 Core ATVs down 40% from Q1 2009 Worldwide Factory Inventory Q1 2010 down 27% from Q1 2009 Finished Goods and PG&A declining steadily Raw materials in Q1 up due to planned Q2 2010 production Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 $246 $220 $220 $179 -27% $180 Significant Cash Flow Generation and Improved Efficiency

15 Dealer Health North American Dealer Count U.S. Dealer repossessions are stable: Q4 2008 20 dealers Q1 2009 13 dealers Q2 2009 12 dealers Q3 2009  9 dealersQ4 2009 12 dealers Q1 2010 4 dealers Max Velocity Program (MVP) Currently 50% of N.A. ORV dealer volumeMore dealers expected in the future Objectives: Maximize Retail SalesMVP dealers retail sales growth greater than non-MVP dealers in Q1Maximize Inventory TurnsDealer Inventory lowerMaximize Market Share#1 in ORV and gaining share Dealer Health Improving – MVP Game Changer

16 Q1 2010 Margins Gross Margins 24.5% 26.2% +170 bpts Q1 2009 Q1 2010 Net Income as a Percent of Sales 2009 Gross Margin Op Expense KTM Impairment Income Taxes / Other 2010 2.7% 1.7% -0.0% 2.9% -1.8% 5.5% Gross margins continue to improve driven by  Continued value engineering investment New product development and innovation Increased speed to market Goal to expand gross margins & net income margins on track for 2010 Margin Expansion Continues

17 Polaris Industries Inc. 1st Quarter 2010 Earnings Results Mike Malone V.P. Finance and CFO

18 2010 Full Year Guidance Product Line Sales - Off-Road Vehicles Up 9% to 12% (increased)  - Snowmobiles Approximately flat - On-Road Vehicles Up over 50% - PG&A Up mid-single digits (increased) Total Company Sales Up +8% to +11% (increased) 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 19% to 22% (increased) EPS, Diluted $3.48 - $3.60 (+14% to +18%) (increased) Share Count Increase throughout 2010

19 Gross Profit Margin Percentage Trends Prior Period 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 Change Q1 2009 Q1 2010 Guidance 2010 22.7% 24.5% 25.1% 24.5% 26.2% Up to 26.1% +180 bpts + 170 bpts Up to + 100 bpts Improvement  to gross margin % Impairment to gross margin % Neutral to gross margin % Product cost reduction & higher selling prices are primary drivers of gross margin improvement

20 Financial Services Income Financial Services Income by category $4.4 -3% $4.3 Q1 2009 Q1 2010 $ in millions Other Activities Wholesale Credit Retail Financing Retail Portfolio – HSBC, GE & Sheffield combined Approval rate Penetration Rate 44% 54% 53% 31% 31% 33% Q1 2009 Q4 2009 Q1 2010 Q1 2009 Q4 2009 Q1 2010 Full Year 2010 income guidance unchanged: similar to 2009 Both approval rate and penetration rate improved from Q1 last year Retail credit availability remains acceptable Q1 wholesale credit income down slightly due to lower dealer inventory levels

21 Balance Sheet and Liquidity Profile   $ In millions (except per share and interest rate data) Q1 2010 Fav (Unfav) 2009 2010 Full Year Guidance Total Debt – ending $200.0 $44.0  $200.0 Net Debt - ending (debt less cash balances) $75.6 $150.5  Improving again Credit Facility (expires December 2011) $450.0 – $450 Average debt outstanding $200.0 $90.7  Lower than 2009 QE Debt Interest Rate (variable) 0.76% (0.18%)  Increase in 2H 2010 Factory Inventory $180.3 $65.3 Comparable to 2009 Capital Expenditures $8.1 $5.5  $50 to $55 Depreciation and amortization $16.0 ($0.9)  $65 to $70 Operating cash flow $3.8 $36.9  increase modestly Stock buyback $27.2 ($26.9)  Minimal open market repurchases Dividend $.40 per share $0.01 per share $1.60 per share (+3%)

22 Second Quarter 2010 Guidance Total Company Sales (in millions) Up14% to 17% $345.9 2009 Q2 Actual 2010 Q2 Guidance Diluted EPS Up19% to 26% $0.63 to $0.67 $0.53  2009 Q2 Actual 2010 Q2 Guidance Expect continued retail sales growth and market share gains Gross margin expansion expected to continue

23 Polaris Industries Inc. 1st Quarter 2010 Earnings Results Scott Wine CEO

24 Solid Start to 2010 Making Growth Happen ORV, Victory, Military, Bobcat Global expansion accelerating Acquisition activity progressing Victory turning the corner Margin expansion continues Operational Excellence, MVP – Game Changers Conservative outlook for powersports industry unchanged Moderate declines in NA & EMEA Polaris gaining significant market share Strategy Unchanged; Returning to Growth

25 Polaris Industries Inc. Thank you.Q & A