8-K

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


FORM 8-K

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

Date of Report (Date of earliest event reported): October 19, 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 October 19, 2010, Polaris Industries Inc. (the “Company”) issued a press release announcing the Company’s third quarter financial results for the reporting period ended September 30, 2010.  On October 19, 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 October 26, 2010 by dialing 800-374-6475 in the U.S. and Canada or 973-200-3967 for international calls and entering passcode 50082189, 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 October 19, 2010 of Polaris Industries Inc.
99.2	Presentation materials dated October 19, 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:	October 19, 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 October 19, 2010 of Polaris Industries Inc.
99.2	Presentation materials dated October 19, 2010 of Polaris Industries Inc.

EX-99.1

Exhibit 99.1

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

Polaris Reports Third Quarter 2010 Results;Sales Increased 33% and Earnings Per Share Increased 46%

Company Increases Full Year 2010 Guidance

Third Quarter 2010 Highlights:

• Sales grew 33% to $580.1 million and net income per share increased 46% to a record $1.37 per diluted share from last year’s third quarter, both exceeding Company expectations
• North American retail sales for the Company increased 21 percent for the third quarter compared to the same period last year
• Net income increased 51% to $47.2 million compared to the same period last year
• Gross margin percentage increased 190 basis points to 26.0%, driven by lower product costs, favorable currency movements and pricing
• Raising guidance for full year 2010 earnings to a record earnings per share range of $4.17 to $4.20 per diluted share, a 37% to 38% increase over full year 2009 on expected full year 2010 sales growth of 24% to 25%

MINNEAPOLIS--(BUSINESS WIRE)--October 19, 2010--Polaris Industries Inc. (NYSE: PII) today reported third quarter net income of $47.2 million, or a record $1.37 per diluted share, for the quarter ended September 30, 2010. By comparison, 2009 third quarter net income was $31.2 million, or $0.94 per diluted share. Sales for the third quarter 2010 totaled $580.1 million, an increase of 33 percent when compared to $436.2 million recorded in the year-earlier period.

“We are pleased with the execution of the Polaris team and our Company’s performance during the third quarter,” commented Scott Wine, Polaris’ Chief Executive Officer. “While the economy and overall consumer demand remains weak, our growth continues to be fueled by innovative new products and our strong dealer network. It is rewarding to see our hard work pay off and be able to report 33 percent sales growth and record earnings per share for the quarter. The momentum we experienced during the first half of 2010 accelerated during the third quarter, as we saw continued market share gains, retail sales growth and margin expansion.”

2010 Business Outlook

As a result of its continued strong retail sales growth, Polaris now expects full year 2010 earnings per diluted share to be in the range of $4.17 to $4.20, which represents an increase of 37 to 38 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 24 to 25 percent over full year 2009 sales of $1.57 billion. During the fourth quarter of 2010, the Company expects total sales to increase in the range of 22 to 24 percent over the fourth quarter 2009. The fourth quarter 2010 expectations include incremental costs related to the manufacturing realignment and higher incentive compensation expenses compared to the 2009 fourth quarter. Fourth quarter 2010 earnings are expected to be in the range of $1.45 to $1.48 per diluted share, up 11 to 13 percent compared to earnings of $1.31 per diluted share for the fourth quarter of 2009.

Wine commented, “The positive feedback on our product introductions from our July dealer meeting, coupled with our continued margin expansion and encouraging results from our recently expanded Max Velocity Program (“MVP”) go-to-market process, gives us confidence in our ability to finish the year with strong operating results. While we remain focused on extending the momentum experienced in the first nine months through the end of the year, our initial thoughts on 2011 are also quite positive. Our new product pipeline is strong and operational excellence continues to be a priority. I am confident we can continue to drive profitability with the goal of generating industry leading returns for our shareholders in 2011 and beyond.”

Third Quarter Performance Summary (in thousands except per share data)
	Three Months ended September 30,					Nine Months ended September 30,
Product line Sales	2010		2009		Change	2010		2009		Change
Off-Road Vehicles	$	389,349	$	261,108	49%	$	981,823	$	738,312	33%
Snowmobiles		77,285		82,218	-6%		84,804		97,797	-13%
On-Road/Victory Motorcycles		20,137		9,344	116%		60,984		33,672	81%
Parts, Garments & Accessories		93,311		83,527	12%		245,086		224,336	9%
Total Sales	$	580,082	$	436,197	33%	$	1,372,697	$	1,094,117	25%
Gross profit	$	150,699	$	104,911	44%	$	358,697	$	264,609	36%
Gross profit as a % of sales		26.0%		24.1%	+190 bpts		26.1%		24.2%	+190 bpts
Operating expenses	$	87,139	$	63,188	38%	$	228,759	$	181,394	26%
Operating expenses as a % of sales		15.0%		14.5%	+50 bpts		16.7%		16.6%	+10 bpts
Operating Income	$	67,696	$	45,645	48%	$	142,575	$	95,507	49%
Operating Income as a % of sales		11.7%		10.5%	+120 bpts		10.4%		8.7%	+170 bpts
Net income	$	47,221	$	31,171	51%	$	92,616	$	57,107	62%
Net income as a % of sales		8.1%		7.1%	+100 bpts		6.7%		5.2%	+150 bpts
Diluted net income per share	$	1.37	$	0.94	46%	$	2.71	$	1.73	57%

Off-Road vehicles (“ORV’) sales, which include sales of both ATVs (all-terrain vehicles) and RANGER™ side-by-side vehicles, increased 49 percent during the third quarter 2010 from the third quarter 2009. This increase reflects significant market share gains for both ATVs and side-by-side vehicles driven by industry leading product offerings and the success of the MVP retail go-to-market process. The MVP program was expanded and made available to all North American ORV dealers beginning in the 2010 third quarter. During the third quarter, the Company began shipping several new model year 2011 ORV products including a mid-sized RANGER side-by-side with increased power, a 4-person mid-sized RANGER Crew and a RANGER with the Company’s first 24 horsepower diesel engine. In addition, shipments to Bobcat of the differentiated utility vehicle, which began shipping in the second quarter, accelerated in the 2010 third quarter. Polaris’ North American ORV unit retail sales to consumers increased approximately 20 percent for the 2010 third quarter from the third quarter last year, with side-by-side vehicle retail sales increasing significantly and ATV retail sales up in the mid-single digit percent range. North American dealer inventories of ORVs declined 30 percent during the third quarter compared to 2009 third quarter levels. During the third quarter of 2010 the number of ORV units shipped to dealers approximated the number of units retailed from dealers to consumers in North America. As the Company had done for the past four years, during the 2009 third quarter Polaris shipped significantly fewer ORV units to dealers than what was retailed from dealers to consumers in North America.

Sales of the On-Road division, which primarily consists of Victory motorcycles, increased 116 percent during the third 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 year to accelerate growth. Victory unit retail sales were very strong during the third quarter, increasing more than 50 percent in North America compared to the third quarter of 2009, resulting in market share gains and retail sales growth for the fourth consecutive quarter. Demand increased across the Victory product line-up, particularly the new Cross Country™ and Cross Roads™ touring models. North American dealer inventory of Victory motorcycles declined 32 percent in the 2010 third quarter compared to 2009 third quarter levels. The sale of Victory motorcycles in markets outside of North America also continues to increase, with sales up over 100 percent for the 2010 third quarter compared to the same period last year.

Parts, Garments, and Accessories (“PG&A”) sales increased 12 percent during the third 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 decreased six percent during the 2010 third quarter compared to the third quarter of 2009. The third quarter 2010 decrease reflects the impact of a modest delay in shipments of snowmobiles closer to expected consumer demand in the winter season compared to the same period last year.

Gross profit as a percentage of sales was 26.0 percent for the third quarter of 2010, an increase of 190 basis points from 24.1 percent for the third quarter of 2009. Gross profit dollars increased 44 percent to $150.7 million for the third quarter of 2010 compared to $104.9 million for the third quarter of 2009. The increase in gross profit dollars and the 190 basis points increase in the gross profit margin percentage in the third quarter 2010 resulted primarily from continued product cost reduction efforts, production volume increases, and favorable pricing and foreign currency movements compared to the third quarter of last year. These increases were partially offset by manufacturing realignment costs, an increase in commodity costs and higher sales promotion costs.

Operating expenses for the third quarter 2010 increased 38 percent to $87.1 million, or 15.0 percent of sales, compared to $63.2 million, or 14.5 percent of sales, for the third quarter of 2009. Operating expenses in absolute dollars for the third quarter 2010 increased primarily due to higher incentive compensation plan expenses driven by the higher expected profitability for 2010 and the recent higher stock price. Incremental investments in growth initiatives also contributed to higher operating expenses.

Income from financial services was $4.1 million during the third quarter 2010 compared to $3.9 million in the third quarter of 2009.

Gain on securities held for sale was $1.6 million for the third quarter of 2010 resulting from the sale of the Company’s remaining investment in KTM Power Sports AG during the quarter.

Non-operating other income was $1.5 million in the third quarter of 2010 compared to $1.3 million in the third quarter of 2009. The income is the result of foreign currency exchange rate movements and the resulting effects on foreign currency transactions related to the international subsidiaries.

Manufacturing Realignment

Execution of the previously announced manufacturing realignment is underway and remains on schedule. The realignment will consolidate manufacturing operations into existing operations in Roseau, Minnesota and Spirit Lake, Iowa and a new facility in Monterrey, Mexico. Construction is underway on the new facility in Monterrey and the building is expected to be completed in the first half of 2011. The Company expects to record pretax transition charges to its income statement in the range of $22 million to $25 million and incur capital expenditures of approximately $35 million over the next few years related to the implementation of the manufacturing realignment. The Company expects to realize pretax 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 have increased slightly and are now expected to be in the range of a total of $11 to $12 million. During the 2010 third quarter, $2.4 million of exit costs and $1.3 million of startup costs were incurred, which are reflected principally in cost of sales on the income statement.

Financial position and cash flow

Cash and cash equivalents increased significantly to $264.5 million at September 30, 2010 compared to $72.8 million at September 30, 2009. Borrowings under the credit agreement were $200 million at September 30, 2010 and 2009. The Company’s debt-to-total-capital ratio was 40 percent at September 30, 2010, compared to 53 percent at the same time last year. Net cash provided by operating activities for the year-to-date period ended September 30, 2010, totaled $156.9 million, a 53 percent increase compared to $102.5 million for the same period last year. Higher net income and lower working capital investments for the 2010 year-to-date period compared to the same period last year are the primary reasons for the increased cash provided by operating activities. The Company paid dividends during the first nine months of 2010 totaling $39.5 million, compared to $37.6 million in the first nine 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 third 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 #50082189.

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 are 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, manufacturing realignment transition costs, savings in logistical and production costs and managements’ initial view of 2011, 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; impact of changes in Polaris stock price on incentive compensation plan costs; 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 Nine Months
	Ended September 30,						Ended September 30,
	2010			2009			2010			2009
Sales	$	580,082		$	436,197		$	1,372,697		$	1,094,117
Cost of Sales		429,383			331,286			1,014,000			829,508
Gross profit		150,699			104,911			358,697			264,609
Operating expenses
Selling and marketing		38,118			27,338			102,380			83,368
Research and development		22,257			15,305			59,507			47,127
General and administrative		26,764			20,545			66,872			50,899
Total operating expenses		87,139			63,188			228,759			181,394
Income from financial services		4,136			3,922			12,637			12,292
Operating Income		67,696			45,645			142,575			95,507
Non-operating Expense (Income):
Interest expense		721			1,059			2,149			3,205
(Gain) Loss on securities available for sale		(1,594	)		-			(825	)		8,952
Other expense (income), net		(1,482	)		(1,322	)		1,016			(2,002	)
Income before income taxes		70,051			45,908			140,235			85,352
Provision for Income Taxes		22,830			14,737			47,619			28,245
Net Income	$	47,221		$	31,171		$	92,616		$	57,107
Basic Net Income per share	$	1.41		$	0.96		$	2.79		$	1.76
Diluted Net Income per share	$	1.37		$	0.94		$	2.71		$	1.73
Weighted average shares outstanding:
Basic		33,405			32,423			33,243			32,357
Diluted		34,377			33,244			34,125			32,931

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
Subject to Reclassification	September 30, 2010		September 30, 2009
(In Thousands)	(Unaudited)		(Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	264,511	$	72,763
Trade receivables, net		98,151		88,073
Inventories, net		279,778		220,836
Prepaid expenses and other		17,443		18,498
Deferred tax assets		68,696		78,199
Total current assets		728,579		478,369
Property and equipment, net		180,936		203,901
Investments in finance affiliate		33,479		40,847
Investments in manufacturing affiliates		1,183		11,262
Goodwill and intangibles, net		27,880		25,589
Total Assets	$	972,057	$	759,968
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable	$	138,044	$	109,796
Accrued expenses:
Compensation		92,382		44,858
Warranties		29,602		28,206
Sales promotions and incentives		83,420		77,345
Dealer holdback		55,029		55,620
Other		50,463		42,618
Income taxes payable		4,559		17,933
Current liabilities of discontinued operations		1,850		1,850
Total current liabilities		455,349		378,226
Long term income taxes payable		4,045		4,481
Deferred income taxes		14,748		43
Borrowings under credit agreement		200,000		200,000
Total liabilities	$	674,142	$	582,750
Total shareholders' equity	$	297,915	$	177,218
Total Liabilities and Shareholders' Equity	$	972,057	$	759,968

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Subject to Reclassification	For Nine Months
(In Thousands)	Ended September 30,
(Unaudited)	2010			2009
Operating Activities:
Net income	$	92,616		$	57,107
Adjustments to reconcile net income to net cash provided by operating activities:
Noncash valuation adjustments on securities available for sale		(825	)		8,952
Depreciation and amortization		49,616			46,650
Noncash compensation		13,460			7,388
Noncash (income) from financial services		(3,313	)		(2,976	)
Noncash (income) loss from manufacturing affiliates		1,203			306
Deferred income taxes		(4,423	)		(6,212	)
Changes in current operating items:
Trade receivables		(7,745	)		10,524
Inventories		(100,463	)		1,476
Accounts payable		62,387			(6,190	)
Accrued expenses		52,031			(34,977	)
Income taxes payable		(3,086	)		18,459
Prepaid expenses and others, net		5,455			1,946
Net cash provided by operating activities		156,913			102,453
Investing Activities:
Purchase of property and equipment		(35,040	)		(35,214	)
Investments in finance affiliate, net		11,166			13,694
Proceeds from sale of investments		9,601			-
Acquisition of business, net of cash acquired		(2,500	)		-
Net cash (used for) investing activities		(16,773	)		(21,520	)
Financing Activities:
Borrowings under credit agreement		-			364,000
Repayments under credit agreement		-			(364,000	)
Repurchase and retirement of common shares		(27,486	)		(400	)
Cash dividends to shareholders		(39,538	)		(37,574	)
Tax effect of proceeds from stock based compensation exercises		7,502			(336	)
Proceeds from stock issuances under employee plans		43,653			3,013
Net cash used for financing activities		(15,869	)		(35,297	)
Net increase in cash and cash equivalents		124,271			45,636
Cash and cash equivalents at beginning of period		140,240			27,127
Cash and cash equivalents at end of period	$	264,511		$	72,763

EX-99.2

Exhibit 99.2

0 Polaris Industries Inc. Third Quarter 2010 Earnings Results October 19, 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, 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; impact of changes in Polaris stock prices on incentive compensation; 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. 3rd Quarter 2010 Earnings Results Scott Wine CEO

3 Q3 2010 Net Income and EPS Net Income ($ in millions) Diluted EPS $0.94 $1.37 +46% $31.2 $47.2 +51% 2009 2010 2009 2010 Highest quarterly Earnings per Share in Polaris history Gross margins improved 190 basis points Operating income increased 120 basis points to 11.7% Another Record Quarter for EPS

4 Q3 2010 Sales Third Quarter 2010 % Change in Total Company Sales Sales growth continues to outperform Company expectations Gained significant market share in ORV and Victory Making Growth Happen $436.2 $580.1 +33% 2009 2010 Volume 29% Product mix and price 3% Currency 1% 33%

5 Q3 2010 Revenue and N.A. Retail Sales Revenue (Million $) $436.2 $128.2 -$4.9 $10.8 $9.8 $580.1 +33% 2009 ORV Snow Victory/On-Road PG&A 2010 Polaris N.A. Retail Sales (Units) Approx. +20% 50%+ Up high teens % +21% Q3 2009 ORV Victory Snow Q3 2010 Polaris Revenue and N.A. Retail Sales continue to outperform industry  Side-by-side and Victory Retail and Revenue up significantly in Q3Revenue growth exceeding Company expectations due to share gains / retail strength ORV up 49% Victory/On-Road up 116% PG&A up 12% Revenue more closely matched Retail Sales worldwide in Q3 2010 Outlook Remains Bright for Revenue Growth

6 Strategic Plan is Working Best in Powersports PLUS 5-8% organic growth #1 in market share in ORV, and gaining Victory progress accelerating Innovation pipeline is robust Growth through Adjacencies $100 - 300M growth Bobcat product well received M&A on track Multi-year National Guard award received Global Market Leadership >25% of Polaris Revenue  International sales up 25% EMEA increasing share in all product lines China and Brazil presence growing Operational Excellence >200bpts Op Margin improvement Gross margins up 190 bpts Monterrey plant under construction LEAN Journey continues to create value Strong Financial Performance Sustainable, Profitable Growth Net Income Margin >7.5% Sales up 25% Net Income up 62% / Record EPS up 57% Net income margin up 150 bpts

7 Polaris Industries Inc. 3rd Quarter 2010 Earnings Results Bennett Morgan President & COO

8 Off-Road Vehicle Division Polaris Sales (millions) $261.1 +49% $389.3 Q3 2009 Q3 2010 Full year 2010 sales guidance:  Up 32% to 33% (increased range)Gained significant ORV market share again in Q3 2010 - Both ATV and side-by-side share is up in both N.A. and Europe - Model year 2011 products well received by dealers and consumers North America ORV dealer inventory down 30% from Q3 2009 Industry remains weak in N.A. -22% $1,021.1 Up 32% to 33% FY 2009 FY 2010 guidance RANGER Crew 500(4 Passenger Side-by-Side) Continued Strong Market Share Gains in Q3

9 Adjacencies Military / Bobcat Alliance Bobcat Strategic AllianceSourced vehicle launched Co-developed vehicle on-track to push further into Work side-by-sides Bobcat Partnership – On-track MilitaryAdded new products to serve more markets Polaris EV LSV (Low speed vehicle) RANGER dieselReceived $67 million multi-year National Guard AwardRequest for quote activity up substantially Polaris Defense – Strong Returns

10 Snowmobile Division 800 Pro RMK Polaris Sales (millions) $82.2 -6% $77.3 Q3 2009 Q3 2010 -13% $179.2 Approx. flat FY 2009 FY 2010 guidance Full Year 2010 Sales Guidance: Approx. Flat with last year (Unchanged) Gaining market share season-to-dateNew MY ’11 snowmobiles shipping on schedule Dealer inventory at appropriate levels heading into key selling months

11 On-Road Division – Victory / LEV Polaris Sales (millions) $9.3 +116% $20.1 Q3 2009 Q3 2010 -44% $52.8 Up 50%+ FY 2009 FY 2010 guidance 2011 Crossroads Custom N.A. Motorcycle Industry 1400cc+ and Victory Retail Sales Q2 2010 Q3 2010 More than 10% Up over 50% Full Year FY 2009 FY 2010 Expectations Industry Victory -10% -12% -10% to 15% Solid growth expected Q3 Victory retail sales continued positive momentumN.A. Industry (1400cc+) remained sluggish – down 12% in Q3Dealer inventory down 32% from Q3 2009 Strong market share gains – particularly in Touring – Cross Bikes LEV progressing Momentum Continues

12 PG&A Polaris Sales (millions) YTD 2010 PG&A Revenue by Business Unit YTD 2010 PG&A Revenue by Product Category $83.5 +12% $93.3 Q32009 Q3 2010 -9%  $312.7 Up mid-single digits FY 2009 FY 2010 guidance Off-Road Vehicles 71% Snow 17% Other 6% Victory 6% Parts 53% Accessories 45% Apparel 2% Accessories up 33% in Q3 - primarily side-by-sides Introduced 300 new accessories for MY11 Maintain High Quality and Productivity

13 International Division Polaris Sales (millions) YTD 2010 Revenue by Geography YTD 2010 Revenue by Business Unit $59.3 +4% $61.4 Q3 2009 Q3 2010 -17% 252.4 Up approx. 20% FY 2009 FY 2010 guidance Europe 70% Aus/NZ 13% Latin America 8% ME / Africa 8% Asia 1% Off-Road Vehicles 69% PG&A 18% Snow 7% On-Road Vehicles 6% Full year 2010 sales guidance up 20%Gained share in ORV, snowmobiles and Victory again in Q3 in EMEA Brazil, China and Victory expansion progressing International Expansion Continuing

14 Manufacturing Realignment Cost Charged to P&L (in millions) Capital Expenditures (in millions) Annualized Savings (in millions) $22 - $25 Estimated Costs to Completion $11 - $12 Full Year 2010 Estimate $5.8 YTD Actual to September 2010 $35 Estimated Capital to complete project $2 YTD Actual to September 2010 $30+ Anticipated Savings upon completion $0 2010 anticipated savings Goal: three manufacturing Centers of ExcellenceMonterrey plant construction began in Q3 Production expected to begin 1st half 2011Costs to complete remains in line with original forecast 2010 costs up slightly to improve plant efficiency and mitigate risk Manufacturing Realignment on Plan

15 Dealer Health North American Polaris Dealer Inventory Levels Down 25% from Q3 2009Victory down 32% from Q3 2009Core ATVs down 37% from Q3 2009 and 4% sequentially from Q2 2010Close to optimal levels Max Velocity Program (MVP) Currently 100% of N.A. ORV dealer volumeSmaller dealers on slightly less frequent order cycle Gaining significant market shareMVP is workingRetail Sales accelerating Inventory Turns improvingIncreasing market shareFactory inventory up to improve delivery to dealers Dealer count increasing in Victory and side-by-sides MVP is Working

16 Innovation Remains Key to Success Model Year 2011 New Products well received: Improvements to Core and Performance models Better Sportsman XP ( 1-Up and 2-Up) Better RANGER XP Improved RZR ergonomics and styling Added Value models New ATV value models (Sportsman 400, 500HO, 800HO) Two new value RANGER mid-size (500 EFI, 500 EFI Crew 4-person)Incrementally New! RANGER Diesel Polaris EV LSV (low speed vehicle) Victory adds Customization  Cross Roads Custom program Cross Country Lock & Ride Trunk Expanded 8-Ball Line-up PRODUCT INNOVATION IS COMPETITIVE ADVANTAGE

17 Q3 2010 Margins Gross Margins 24.1% 26.0% +190 bpts Q3 2009 Q3 2010 Net Income as a Percent of Sales 2009 Gross Margin Operating Expense KTM gain Income Taxes / Other 2010 7.1% +1.9% -0.5% +0.3% -0.7% 8.1% Gross margins continue to improve driven by  Product cost reduction efforts Production volume increase Continued value engineering investment New product development and innovationOffset by incremental manufacturing realignment costs in 2010Goal to expand gross margins & net income margins on track for FY 2010 Margin Expansion Continues

18 Polaris Industries Inc. 3rd Quarter 2010 Earnings Results Mike Malone V.P. Finance and CFO

19 Full Year 2010 Guidance Total Company Sales (in millions) $1,565.9 Up 24% to 25% 2009 Actual 2010 Guidance Polaris retail sales continue to accelerateSide-by-sides generating significant growth Diluted EPS expected to be up 37% to 38% EPS expected in $4.17 to $4.20 range Net income margin improvement accelerating Diluted EPS (in millions) $3.05 Up 37% to 38% $4.17 to $4.20 2009 Actual 2010 Guidance Record EPS Projected

20 2010 Full Year Guidance Product Line Sales - Off-Road Vehicles Up 32% to 33% (increased)  - Snowmobiles Approximately flat  - On-Road Vehicles Up over 50% - PG&A Up mid-single digits Total Company Sales Up +24% to +25% (increased) Gross Margins Up to 110 bpts improvement  Operating expenses Up in dollars & as a percent of sales Income Taxes 32.5% to 33.0% of pretax income (improved) Net Income Up 42% to 43% (increased) EPS, Diluted $4.17 - $4.20 (+37% to +38%) (increased) Share Count Increase throughout 2010

21 Gross Profit Margin Percentage Trends Q3 2009 Q3 2010 Guidance Q4 2010 Guidance 2010 Prior Period 22.5% 24.1% 27.3% 25.1% Production volume adjustments Product cost reduction efforts Commodity costs Currency rates Higher selling prices Product mix Manufacturing  realignment Warranty costs Tooling amortization Sales promotional costs Current period 24.1% 26.0% >26.0% Up to 26.2% Change +160 bpts + 190bpts Up to +110 bpts Improvement to gross margin % Impairment to gross margin % Neutral to gross margin %

22 Financial Services Income Financial Services Income by category $3.9 +5% $4.1 $ in millions Q3 2009 Q3 2010 Other Activities Wholesale Credit Retail Financing Retail Portfolio – HSBC, GE & Sheffield combined 52% 57% 60% Q3 2009 Q2 2010 Q3 2010 35% 33% 33% Q3 2009 Q2 2010 Q3 2010 Approval rate Penetration Rate Full Year 2010 income guidance unchanged – slightly lower than 2009 Approval rates have increased to 60% in Q3 Penetration rate remains stable at 33% Retail credit volume up 12% YTD compared to 2009 Retail Credit is Available for Qualified Customers

23 Balance Sheet and Liquidity Profile $ In millions (except per share and interest rate data) YTD Q3 2010 Fav (Unfav) 2009 2010 Full Year Guidance Cash  $264.5 $191.7 Improving again Total Debt – ending $200.0 $0.0 $200 Credit Facility (expires December 2011) $450.0 – $450 Average debt outstanding $200.0 $90.7 $200 Debt Interest Rate - ending (variable) 0.75% –  Stable Factory Inventory $279.8 ($59.0) Higher than 2009 Capital Expenditures $35.0 $0.2 $65 to $70 (includes manufacturing realignment) Depreciation & Amortization $49.6 $3.0 $65 to $70 Operating cash flow $156.9 $54.4 Continued improvement Stock buyback $27.5 ($27.1)  Related to employee option exercises, no open market repurchases Dividend $1.20 per share $0.03 per share $1.60 per share (+3%)

24 Fourth Quarter 2010 Guidance Total Company Sales (in millions) Up 22% to 24% $471.8 2009 Q4 Actual 2010 Q4 Guidance Diluted EPSUp 11% to 13% $1.31 $1.45 to $1.48 2009 Q4 Actual 2010 Q4 Guidance Expect continued retail sales growth and market share gains Gross margin % expected to decline due to manufacturing realignment Tougher comparisons begin in Q4

25 Polaris Industries Inc. 3rd Quarter 2010 Earnings Results Scott Wine CEO

26 2011 – Initial Thoughts U.S & European economies expected to slowly improve Powersports market growth remains muted “Make Growth Happen” theme continues International presence and growth accelerate – China, Brazil Market share expansion throughout the world; again Victory momentum to continueMonterrey plant expected to begin production mid-year Acquisition strategy begins to produce results Will drive for net margin expansion; againOperational Excellence initiatives and momentum will help Capitalize on Momentum Generated in 2010

27 Polaris Industries Inc. Thank you. Q & A