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): July 20, 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 July 20, 2010, Polaris Industries Inc. (the “Company”) issued a press release announcing the Company’s second quarter financial results for the reporting period ended June 30, 2010.  On July 20, 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 July 27, 2010 by dialing 800-374-6475 in the U.S. and Canada or 973-200-3967 for international calls and entering passcode 50081377, 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 July 20, 2010 of Polaris Industries Inc.
99.2	Presentation materials dated July 20, 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.

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:	July 20, 2010
		POLARIS INDUSTRIES INC.
		/s/ Michael W. Malone
		Michael W. Malone
		Vice President – Finance and
		Chief Financial Officer of Polaris Industries Inc.

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release dated July 20, 2010 of Polaris Industries Inc.
99.2	Presentation materials dated July 20, 2010 of Polaris Industries Inc.

EX-99.1

Exhibit 99.1

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

Polaris Reports Second Quarter 2010 Results

Sales Increased 25% and Earnings Per Share Increased 42%; Company Increases Full Year 2010 Sales and Earnings Per Share Guidance

Second Quarter 2010 Highlights:

• Sales grew 25% to $430.9 million and net income per share increased 42% to a record $0.75 per diluted share from last year’s second quarter, both exceeding Company expectations
• Net income increased 47% to $25.6 million compared to the same period last year
• Gross margin percentage increased 210 basis points to 26.2%, driven by lower product costs and production volume increases
• Raising guidance for full year 2010 earnings to a record earnings per share range of $3.80 to $3.90 per diluted share, a 25% to 28% increase over full year 2009 on expected full year 2010 sales growth of 17% to 20%

MINNEAPOLIS--(BUSINESS WIRE)--July 20, 2010--Polaris Industries Inc. (NYSE: PII) today reported second quarter net income of $25.6 million, or a record $0.75 per diluted share, for the quarter ended June 30, 2010. By comparison, 2009 second quarter net income was $17.5 million, or $0.53 per diluted share. Sales for the second quarter 2010 totaled $430.9 million, an increase of 25 percent from $345.9 million recorded in the year-earlier period.

“Polaris maintained strong momentum in the second quarter, driven by solid market share gains, sales growth and margin expansion. Innovation and execution enabled us to deliver another quarter of solid operating results in an overall economic and powersports industry environment that remains sluggish,” commented Scott Wine, Polaris’ Chief Executive Officer.

“Market share gains across most our product lines, and particularly in our ORV business, continue to drive retail sales demand ahead of our expectations. Together with continued product innovations, improved dealer inventory positions and the success of our go-to-market retail sales process called Max Velocity Program, the higher retail sales velocity in North America is fueling demand in our factories and positive impacts on our bottom line. Our international business also did well in the second quarter, with sales up 32 percent, as market share gains and growth offset the currency weakness and economic concerns in Europe. The 25 percent revenue growth was accompanied and supported by our operational excellence initiatives, which continued to deliver improvements in both product costs and efficiencies during the second quarter,” said Wine.

“Next week Polaris will unveil the new model year 2011 products at our annual dealer meeting. We have maintained our focus on product and process innovation and are very excited to introduce several new, high quality products within our ORV and Victory motorcycles lines,” Wine said. “We believe these products will further complement and enhance our current portfolio supporting our long track record of developing innovative utility and recreational vehicles for our customers. In an environment that has proven to be very unpredictable, the execution of the Polaris team has been exceptional and we expect the momentum we have generated in the first half of 2010 to continue throughout the remainder of the year.”

2010 Business Outlook

As a result of its continued retail sales growth, Polaris now expects full year 2010 earnings per diluted share to be in the range of $3.80 to $3.90, which represents an increase of 25 to 28 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 17 to 20 percent over full year 2009 sales of $1.57 billion. During the third quarter of 2010, the Company expects total sales to increase in the range of 17 to 20 percent over the third quarter 2009. Third quarter 2010 earnings are expected to be in the range of $1.10 to $1.15 per diluted share, up 17 to 22 percent compared to earnings of $0.94 per diluted share for the third quarter of 2009.

Wine commented, “Based on our solid performance in the first half of 2010 and the anticipated success of our new product launch next week, we feel confident in raising our full year 2010 sales and earnings guidance. Our revised full year guidance, if we are successful in delivering, represents a record for earnings per share for Polaris. We have consistently said that we are committed to making growth happen no matter what is occurring in the external environment and we fully expect to continue to deliver on that commitment.”

Second Quarter Performance Summary (in thousands except per share data)
	Three Months ended June 30,								Six Months ended June 30,
Product line Sales		2010			2009		Change			2010			2009		Change
Off-Road Vehicles	$	342,071		$	261,743		31	%	$	592,474		$	477,204		24	%
Snowmobiles		1,965			7,413		-73	%		7,519			15,579		-52	%
On-Road/Victory Motorcycles		15,494			10,492		48	%		40,847			24,328		68	%
Parts, Garments & Accessories		71,377			66,248		8	%		151,775			140,809		8	%
Total Sales	$	430,907		$	345,896		25	%	$	792,615		$	657,920		20	%
Gross profit	$	113,084		$	83,264		36	%	$	207,998		$	159,698		30	%
Gross profit as a % of sales		26.2	%		24.1	%	+210 bpts			26.2	%		24.3	%	+190 bpts
Operating expenses	$	74,386		$	60,159		24	%	$	141,620		$	118,206		20	%
Operating expenses as a % of sales		17.3	%		17.4	%	-10 bpts			17.9	%		18.0	%	-10 bpts
Operating Income	$	42,943		$	27,071		59	%	$	74,879		$	49,862		50	%
Operating Income as a % of sales		10.0	%		7.8	%	+220 bpts			9.4	%		7.6	%	+180 bpts
Net income	$	25,624		$	17,478		47	%	$	45,395		$	25,936		75	%
Net income as a % of sales		5.9	%		5.1	%	+80 bpts			5.7	%		3.9	%	+180 bpts
Diluted net income per share	$	0.75		$	0.53		42	%	$	1.34		$	0.79		70	%

Off-Road vehicles (“ORV”) sales, which include sales of both ATVs (all-terrain vehicles) and RANGER™ side-by-side vehicles, increased 31 percent during the second quarter 2010 from the second quarter 2009. This increase reflects significant market share gains for both ATVs and side-by-side vehicles driven by new product offerings and the Max Velocity Program (“MVP”) retail go-to-market process. North American retail sales to consumers for ORVs increased in the mid-teens percent for the 2010 second quarter from the second quarter last year, with side-by-side vehicle retail sales increasing significantly while ATV retail sales were down in the high single digit percent range. In addition, shipments of the first units of the differentiated sourced utility vehicle to Bobcat began late in the second quarter of 2010. North American dealer inventories of ORVs declined 37 percent during the second quarter compared to 2009 second quarter levels. ORVs sales to customers outside of North America increased 33 percent in the second quarter 2010 compared to the 2009 second quarter, 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 and higher selling prices.

Sales of the On-Road division, which primarily consists of Victory motorcycles, increased 48 percent during the second quarter of 2010 when compared to the same period in 2009. The North American heavyweight cruiser and touring motorcycle industry remained weak during the quarter, but Victory continued to benefit from the actions implemented over the past nine months to accelerate growth. Victory motorcycles had strong retail sales during the 2010 second quarter, increasing more than 10 percent in North America compared to the second quarter last year, resulting in market share gains and retail sales growth for the third consecutive quarter. The increased demand reflects the acceptance of the new model year 2010 motorcycles, particularly the new Cross Country™ and Cross Roads™ touring models. North American dealer inventory of Victory motorcycles declined 32 percent in the 2010 second quarter compared to 2009 comparable levels. The sale of Victory motorcycles in markets outside of North America continues to accelerate, with sales reaching 25 percent of total On-Road/Victory sales for the year-to-date period ended June 30, 2010.

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

Snowmobile sales totaled $2.0 million for the 2010 second quarter compared to $7.4 million for the second quarter of 2009. The decrease in sales was primarily the result of timing of shipments in the 2010 second quarter compared to the second quarter last year. The second quarter is historically a seasonally low quarter for snowmobile shipments, as deliveries to dealers ramp up in the second half of the calendar year.

Gross profit as a percentage of sales was 26.2 percent for the second quarter of 2010, an increase of 210 basis points from 24.1 percent for the second quarter of 2009. Gross profit dollars increased 36 percent to $113.1 million for the second quarter of 2010 compared to $83.3 million for the second quarter of 2009. The increase in gross profit dollars and the 210 basis points increase in the gross profit margin percentage in the second quarter 2010 resulted primarily from continued product cost reduction efforts, and significant production volume increases compared to the second quarter of last year.

Operating expenses for the second quarter 2010 increased 24 percent to $74.4 million or 17.3 percent of sales compared to $60.2 million or 17.4 percent of sales for the second quarter of 2009. Operating expenses in absolute dollars for the second quarter 2010 increased primarily due to higher incentive compensation plan expenses due to the higher expected profitability for 2010 compared to 2009 and the current higher stock price.

Income from financial services was $4.2 million during second quarter 2010 compared to $4.0 million in the second quarter of 2009.

The non-cash Impairment charge on securities held for sale recorded in the second quarter 2010 was $0.8 million. During the second quarter 2010, the Company determined that the decline in the market value of the KTM shares owned by the Company was other than temporary and that the market value currently reflects the cost basis of the investment; therefore, the Company recorded the decrease in the fair value of the investment as a charge to the income statement as of June 30, 2010.

Non-operating other expense was $2.3 million in the second quarter of 2010 compared to $0.7 million of income in the second quarter of 2009. The change was primarily due to foreign currency exchange rate movements and the resulting effects of foreign currency transactions related to the international subsidiaries.

Manufacturing Realignment

Execution of the previously announced manufacturing realignment is underway and will be a key part of Polaris’ overall strategy to increase its competitiveness in the years ahead. The realignment will consolidate manufacturing operations into existing operations in Roseau, Minnesota and Spirit Lake, Iowa as well as establish a new facility in Mexico. The realignment will lead to the sale or closure of the Osceola, Wisconsin manufacturing operations by 2012. The Company expects to record pretax transition charges to its income statement in the range of $20 million to $25 million and incur capital expenditures up to $35 million over the next few years related to the implementation of the manufacturing realignment. The Company expects to realize savings in excess of $30 million annually when the transition is completed. The exit costs and startup costs pertaining to the realignment for the full year 2010 are expected to be in the range of a total of $8 to $10 million. During the year-to-date period ended June 30, 2010, $1.0 million of exit costs and $1.0 million of startup costs were incurred, the vast majority of which are reflected in cost of sales on the income statement.

Financial position and cash flow

Cash and cash equivalents increased significantly to $166.3 million at June 30, 2010 compared to $30.0 million for the same period last year. Borrowings under the credit agreement were $200.0 million at June 30, 2010 compared to $250.0 million at June 30, 2009. The Company’s debt-to-total-capital ratio was 45 percent at June 30, 2010, compared to 63 percent at the same time last year. Net cash provided by operating activities totaled $53.2 million for the second quarter ended June 30, 2010, a significant improvement from cash provided by operating activities totaling $24.4 million in the second quarter of 2009. Year-to-date ended June 30, 2010, net cash provided by operating activities totaled $57.0 million compared to net cash used by operating activities totaling $8.7 million at June 30, 2009. Higher net income and lower working capital requirements for the 2010 year-to-date periods compared to the same periods last year are the primary reasons for the increased cash provided by operating activities. The Company paid dividends during the first six months of 2010 totaling $26.3 million, compared to $25.0 million in the first six months of 2009, at a rate per share in 2010 that is slightly higher than last year’s per share rate.

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 second 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 #50081377.

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, new product launches, manufacturing realignment transition costs and savings in logistical and production costs, 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 the Company’s ability to successfully implement its manufacturing operations realignment initiatives, 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					For Six Months
	Ended June 30,					Ended June 30,
		2010		2009			2010		2009
Sales	$	430,907	$	345,896		$	792,615	$	657,920
Cost of Sales		317,823		262,632			584,617		498,222
Gross profit		113,084		83,264			207,998		159,698
Operating expenses
Selling and marketing		34,164		28,702			64,262		56,030
Research and development		18,512		15,222			37,250		31,822
General and administrative		21,710		16,235			40,108		30,354
Total operating expenses		74,386		60,159			141,620		118,206
Income from financial services		4,245		3,966			8,501		8,370
Operating Income		42,943		27,071			74,879		49,862
Non-operating Expense (Income):
Interest expense		729		1,095			1,428		2,146
Impairment charge on securities held for sale		769		-			769		8,952
Other expense (income), net		2,318		(677	)		2,498		(680	)
Income before income taxes		39,127		26,653			70,184		39,444
Provision for Income Taxes		13,503		9,175			24,789		13,508
Net Income	$	25,624	$	17,478		$	45,395	$	25,936
Basic Net Income per share	$	0.77	$	0.54		$	1.37	$	0.80
Diluted Net Income per share	$	0.75	$	0.53		$	1.34	$	0.79
Weighted average shares outstanding:
Basic		33,255		32,381			33,162		32,324
Diluted		34,248		32,990			33,999		32,775

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
Subject to Reclassification	June 30, 2010		June 30, 2009
(In Thousands)	(Unaudited)		(Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	166,272	$	30,036
Trade receivables, net		96,638		54,027
Inventories, net		222,608		219,645
Prepaid expenses and other		22,483		20,272
Deferred tax assets		59,838		76,042
Total current assets		567,839		400,022
Property and equipment, net		184,572		212,103
Investments in finance affiliate		31,857		43,352
Investments in manufacturing affiliates		9,461		10,656
Goodwill and intangibles, net		27,579		25,105
Total Assets	$	821,308	$	691,238
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable	$	102,037	$	57,313
Accrued expenses:
Compensation		56,699		30,016
Warranties		24,661		25,372
Sales promotions and incentives		66,297		64,497
Dealer holdback		65,092		53,698
Other		41,418		35,522
Income taxes payable		4,099		15,321
Current liabilities of discontinued operations		1,850		1,850
Total current liabilities		362,153		283,589
Long term income taxes payable		5,659		5,106
Deferred income taxes		13,698		3,102
Borrowings under credit agreement		200,000		250,000
Total liabilities	$	581,510	$	541,797
Shareholders’ Equity:
Total shareholders' equity	$	239,798	$	149,441
Total Liabilities and Shareholders' Equity	$	821,308	$	691,238

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Subject to Reclassification	For Six Months
(In Thousands)	Ended June 30,
(Unaudited)		2010			2009
Operating Activities:
Net income	$	45,395		$	25,936
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Noncash impairment charge on securities held for sale		769			8,952
Depreciation and amortization		31,562			28,658
Noncash compensation		9,321			4,753
Noncash (income) from financial services		(2,293	)		(2,071	)
Noncash loss from manufacturing affiliates		918			196
Deferred income taxes		3,769			(997	)
Changes in current operating items:
Trade receivables		(6,233	)		44,571
Inventories		(43,293	)		2,667
Accounts payable		26,380			(58,673	)
Accrued expenses		(4,698	)		(74,519	)
Income taxes payable		(1,932	)		16,472
Prepaid expenses and others, net		(2,683	)		(4,642	)
Net cash provided by (used for) operating activities		56,982			(8,697	)
Investing Activities:
Purchase of property and equipment		(20,925	)		(25,183	)
Investments in finance affiliate, net		11,768			10,284
Acquisition of business, net of cash acquired		(2,500	)		-
Net cash (used for) investing activities		(11,657	)		(14,899	)
Financing Activities:
Borrowings under credit agreement		-			268,000
Repayments under credit agreement		-			(218,000	)
Repurchase and retirement of common shares		(27,398	)		(282	)
Cash dividends to shareholders		(26,289	)		(24,993	)
Tax effect of proceeds from stock based compensation exercises		4,407			(427	)
Proceeds from stock issuances under employee plans		29,987			2,207
Net cash (used for) provided by financing activities		(19,293	)		26,505
Net increase in cash and cash equivalents		26,032			2,909
Cash and cash equivalents at beginning of period		140,240			27,127
Cash and cash equivalents at end of period	$	166,272		$	30,036

EX-99.2

Exhibit 99.2

Polaris Industries Inc. Second Quarter 2010 Earnings Results July 20, 2010

1Safe 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, cash flow, and manufacturing realignment transition costs and savings, 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 realignment transition costs, 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.

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

3 Q2 2010 Net Income and EPS Diluted EPS $0.53 $0.75 +42% Net Income ($ in millions) $17.5 $25.6 +47%  2009 2010 Increased net income and record EPS driven by sales growth and margin expansion Gross margins improved 210 basis points Another Strong Quarter

4 Q2 2010 Sales Second Quarter 2010 $345.9 $80.3 -$5.4 $5.0 $5.1 $430.9 Total Company Total Company +25% % Change in Total Company Sales 2009 ORV Snow Victory/On-Road PG&A 2010 Sales growth continues to outperform Company expectations      - ORV up 31% - International up 32% - Victory/On-Road up 48% - PG&A up 8% Gained significant market share in ORV and Victory Volume 21% Product mix and price 2% Currency 2% 25% Making Growth Happen

5 North American Retail Sales Polaris N.A. retail sales continues to outperform Side-by-side, Victory and International retail sales up significantly in Q2 Industry remains sluggish Product innovation and MVP continues to drive growth 0% (percentage change from prior year) Significant Improvement Continued Snow Vic ORV Total -12% -20% -23% -22% -17% -4% 9% 13% Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10

6 Strategic Plan Gaining Momentum Strategic initiatives 1st Half Progress Best in Powersports PLUS 5-8% organic growth #1 in market share in ORV, and gaining Victory progress continues Growth through Adjacencies $100 - 300M growth Began shipping Bobcat product M&A on track Global Market Leadership >25% of Polaris Revenue International growth of 36% China presence growing Operational Excellence >Gross margins up 190 bpts >200bpts Op Margin improvement Manufacturing realignment underway Strong Financial Performance Sustainable, Profitable Growth Sales up 20% Earnings up 75% Net Income Margin >7.5% Record EPS up 70%

7 Full Year 2010 Guidance Polaris retail sales continue to accelerate Side-by-side generating significant growth Net income dollars expected to be up 30% to 33% Net income margin improvement accelerating Total Company Sales(in millions) Diluted EPS(in millions) $1,565.9 Up 17% to 20% Actual Guidance 2009 2010 $3.05 Up25% to 28% $3.80 to $3.90 Actual Guidance 2009 2010 Record EPS Projected

Polaris Industries Inc. 2nd Quarter 2010 Earnings Results Bennett Morgan President & COO

9 Off-Road Vehicle Division Polaris Sales ($000’s) $261.7 +31% Full year 2010 sales guidance increased:  Up 22% to 24% (increased range) Gained significant ORV market share again in Q2 2010 - Both ATV and side-by-side share is up in both N.A. and Europe - New RANGER RZR 4 selling well - Began shipments of Bobcat utility vehicle in Q2 North America ORV dealer inventory down 37% from Q2 2009 Continued Strong Market Share Gains in Q2 RANGER XP $342.1 guidance -22% $1,021.1 Up 22% to 24% Q2 2009 Q2 2010 FY 2009 FY 2010 ATV SXS

10 Bobcat branded products for construction, industrial, landscape and agriculture Bobcat Alliance Began shipping product in Q2 to Bobcat Goals: increased volume diversify outside powersports new product developments

11 On-Road Division – Victory / LEV Sales ($000’s) $10.5 +48% $15.5 Momentum Continues N.A. Motorcycle Industry 1400cc+ and Victory Retail Sales guidance $52.8 Up 50%+ Victory Crossroads 2010 V-Twin “Bike of the Year” Q1 2010 Full Year Q2 2010 Victory Industry FY 2009 FY2010 Expectations Solid growth expected -20% -10% More than 10% -10% to 15% Q2 Victory retail sales continued positive momentum N.A. Industry remained sluggish – down 10% in Q2 Dealer inventory down 32% from Q2 2009 Strong market share gains – particularly in Touring – Cross Bikes LEV increased distribution points and added 2 new models

12 PG&A Polaris Sales ($000’s) $66.2 +8% $71.4 Q2 2010 PG&A Revenue by Business Unit Q2 2010 PG&A Revenue by Product Category Accessories 44% Full Year 2010 sales guidance (unchanged) Accessories up 25% in Q2 - primarily side-by-sides International PG&A sales up 13% in Q2 Will release almost 200 new MY11 accessory products at dealer show Maintain High Quality and Productivity -9% $312.7 Up mid-single digits guidance Q2 2009 FY 2009 FY 2010 Snow 6% Other 7% Victory 7% Off-Road Vehicles 80% Apparel 1% Parts 55%

13 International Division Polaris Sales ($000’s) $58.7 +32% $77.5 Q2 2010 Revenue by Geography Q2 2010 Revenue by Business Unit Full year 2010 sales guidance lowered slightly to up 15% to 20% - Primarily driven by currency Gained share in ORV again in Q2 China and Victory expansion progressing International Performing Well in Tough Economy -17% 252.4 Up 15% to 20% guidance Q2 2009 FY 2009 FY 2010 ME / Africa 10% Latin America 7% Asia 1% Aus/NZ 12% Europe 71% Snow 1% PG&A 15% On-Road Vehicles 7% Off-Road Vehicles 77%

14 Manufacturing Realignment Goal: three manufacturing Centers of Excellence Mexican manufacturing location in Monterrey selected Production expected to begin 1st half 2011Costs to complete in line with original forecast Cost Charged to P&L(in millions) Annualized Savings(in millions) Manufacturing Realignment Underway $20 - $25 $8 - $10 $2.0 Anticipated Savings upon completion $30+ Capital Expenditures(in millions) $35 Estimated Capital to complete project YTD Actual to June 2010 $0 2010 anticipated savings $0 Estimated Costs to Completion Full Year 2010 Estimate YTD Actual to June 2010

15 Operational Excellence Results Q2 2010 up 1% from Q2 2009 Raw materials and finished goods up due to production increases Increasing inventory for balance of CY10 to improve delivery Worldwide Factory Inventory Inventories in Great Shape North American Polaris Dealer Inventory Levels Down 32% from Q2 2009 Down 13% sequentially from Q1 2010 Victory down 32% from Q2 2009 Core ATVs down 42% from Q2 2009 and 14% sequentially from Q1 2010 Close to optimal levels +1% $223 $246 $220 $220 2006 Actual 2007 Actual 2008 Actual 2009 Actual 2010 Budget 2010 Actual $180 $179 Units Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

16 Dealer Health North American Dealer Count U.S. Dealer repossessions are stable Dealer count up slightly driven by Victory and SxS additions Dealer Health Improving – MVP Working Currently 50% of N.A. ORV dealer volume - More ORV dealers to be added in 2H 2010 Gaining significant share MVP is working - Retail Sales accelerating - Inventory Turns improving - Increasing market share Some dealers report product shortage of certain models Max Velocity Program (MVP) ORV Snowmobiles Victory 2000 1600 1200 800 400 0 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

17 24.1% 26.2% +210 bpts Q2 2010 Margins Net Income as a Percent of Sales Gross Margins Gross Margin Op Expense KTM Impairment IncomeTaxes /Other 5.1% 5.9% 2009 2010 Margin Expansion Continues Gross margins continue to improve driven by Product cost reduction efforts Production volume increase Continued value engineering investment New product development and innovation Goal to expand gross margins & net income margins on track for FY 2010 Q2 2009 Q2 2010

Polaris Industries Inc. 2nd Quarter 2010 Earnings Results Mike Malone V.P. Finance and CFO

19 2010 Full Year Guidance Product Line Sales - Off-Road Vehicles Up 22% to 24% (increased) – Snowmobiles Approximately flat - On-Road Vehicles Up over 50% - PG&A Up mid-single digits Total Company Sales Up 17% to +20% (increased) Gross Margins Up to 130 bpts improvement (increased) Operating expenses Up in dollars & as a percent of sales Income Taxes In the range of 33.0% to 33.5% of pretax income Net Income Up 30% to 33% (increased) EPS, Diluted $3.80 - $3.90 (+25% to +28%) (increased) Share Count Increase throughout 2010

20 Gross Profit Margin Percentage Trends Guidance Q2 2009 Q2 2010 2010 Prior Period 23.7% 24.1% 25.1% Production volume adjustments Product cost reduction efforts Commodity costs Currency rates Higher selling prices Product mix Manufacturing realignment N/A Warranty costs Tooling amortization Sales promotional costs Current period 24.1% 26.2% Up to 26.4% Change +40 bpts +210 bpts Up to +130 bpts Improvement to gross margin % Impairment to gross margin % Neutral to gross margin %

21 Financial Services Income Full Year 2010 income guidance lowered slightly due to lower dealer inventory levels Approval rate has seen sequential improvement to 57% Penetration rate stable Retail credit availability remains acceptable Financial Services Income by category Retail Portfolio – HSBC, GE & Sheffield combined Penetration Rate Approval rate +7% $4.2 $4.0 $ in millions Other Activities Wholesale Credit Retail Financing Q2 2009 Q2 2010 48% 53% 57% 33% 33% 33% Q1 2010

22 Balance Sheet and Liquidity Total Debt – ending $200.0 $50.0 $200 Net Debt – ending (debt less cash balances) $33.7 $186.3 Improving again Credit Facility (expires December 2011) $450.0 – $450 Average debt outstanding $200.0 $95.6 $200 Debt Interest Rate – ending (variable) 0.83% (0.04%) Increase in 2H 2010 Factory Inventory $222.6 $3.0 Higher than 2009 Capital Expenditures $20.9 $4.3 $65 to $70 (includes manufacturing realignment) Depreciation & Amortization $31.6 $2.9 $65 to $70 Operating cash flow $57.0 $65.7 increase double digit % Stock buyback $27.4 ($27.1) Related to employee option exercises, no open market repurchases Dividend $.80 per share $0.02 per share $1.60 per share (+3%) $ In Millions (except per share and interest rate data) YTD Q2 2010 Fav (Unfav) 2009 2010 Full Year Guidance

23 Up17% to 20% Third Quarter 2010 Guidance Expect continued retail sales growth and market share gains Gross margin expansion expected to continue Total Company Sales(in millions) Diluted EPS $436.2 Q3 Actual Q3 Guidance $0.94 $1.10 to $1.15 Up17% to 22% Q3 Actual Q3 Guidance 2009 2010

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

25 Priorities for 2nd Half 2010 Make growth happen Ramp up production to meet demand Expand & improve MVP  Execute manufacturing realignment plan Great Dealer Show – New Product Introductions Maintaining Momentum, Staying on Strategy

26 Polaris Industries Inc. Thank you. Q & A