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): January 27, 2011


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

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

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

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

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

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

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

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

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

Item 2.02 Results of Operations and Financial Condition.

On January 27, 2011, Polaris Industries Inc. (the “Company”) issued a press release announcing the Company’s fourth quarter and year-end financial results for the reporting period ended December 31, 2010.  On January 27, 2011, the Company also hosted its quarterly earnings conference call, which was accessible to the public.  A recording of the conference call will be available through the end of the business day on February 3, 2011 by dialing 800-642-1687 in the U.S. and Canada, or 706-645-9291 Internationally, 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 January 27, 2011 of Polaris Industries Inc.
99.2	Presentation materials dated January 27, 2011 of Polaris Industries Inc.

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:	January 27, 2011
		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 January 27, 2011 of Polaris Industries Inc.
99.2	Presentation materials dated January 27, 2011 of Polaris Industries Inc.

EX-99.1

Exhibit 99.1

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

Polaris Reports Record 2010 Fourth Quarter and Full Year Results

Fourth Quarter and Full Year Highlights:

• Fourth quarter 2010 earnings per diluted share increased 18% to a record $1.55 with sales increasing 31 percent from the 2009 fourth quarter to a record $618.4 million
• All product lines experienced increased sales and market share during the 2010 fourth quarter and full year
• Full year 2010 earnings per diluted share increased 40% to a record $4.28 with record sales of $1,991.1 million, an increase of 27% from the 2009 full year
• Full year 2010 gross profit margins improved 150 basis points over 2009, primarily due higher production volumes and cost reduction efforts, though partially offset by manufacturing realignment costs. Gross profit margins improved 40 basis points for the fourth quarter
• Cash and cash equivalents totaled $393.9 million at year-end 2010, an increase of 181% over 2009

MINNEAPOLIS--(BUSINESS WIRE)--January 27, 2011--Polaris Industries Inc. (NYSE:PII) today reported record net income of $1.55 per diluted share for the fourth quarter of 2010, up 18 percent over the 2009 fourth quarter. Net income for the fourth quarter 2010 was a record $54.5 million, an increase of 24 percent over the same period in 2009. Record sales of $618.4 million for the fourth quarter 2010 increased 31 percent over 2009 fourth quarter sales of $471.8 million.

Full Year Results

For the full year ended December 31, 2010, Polaris reported record net income of $147.1 million, or a record $4.28 per diluted share, compared to $101.0 million, or $3.05 per diluted share for the year ended December 31, 2009. This represents a 40 percent increase on a per diluted share basis and a 46 percent increase in net income. Sales for the full year 2010 totaled a record $1,991.1 million, an increase of 27 percent compared to sales of $1,565.9 million for the full year 2009.

“2010 was an exceptional year for Polaris. Not only did we deliver record sales and earnings, but the Polaris team made significant progress toward our long-term strategy and positioned the business for profitable growth in the future. We gained market share in all of our businesses and grew sales in every region of the world. Our persistent focus on margins paid dividends, as gross profit margins increased 150 basis points and net margins expanded by 90 basis points to 7.4 percent of sales. We also expanded our leadership position in the side-by-side industry, and grew sales and market share in our Victory motorcycles and snowmobile businesses,” stated Scott Wine, Chief Executive Officer. “In addition to our record financial performance, we made several strategic investments in the business during 2010 that position us for future growth, including investments in China, Brazil and India, and a small powertrain acquisition in Europe. Lastly, our manufacturing realignment project, announced in mid-2010, is on track to begin production in our new Monterrey facility by mid-2011.”

“Our efforts throughout 2010 have further positioned the Company for continued growth and profitability in 2011 and beyond. Importantly, dealer inventories for ORV and Victory continued to decline in 2010 and are at appropriate levels as we enter 2011. Additionally, we expanded the retail sales program called Max Velocity Program, or MVP, into the remaining 50 percent of our ORV dealers in North America during the second half of 2010. We expect MVP to continue to drive retail sales velocity and market share gains in 2011,” Wine continued.

“Ending 2010 with $394 million in cash and only $200 million in total debt, we have both the financial strength and flexibility to continue to make organic and acquisitive investments to support our long-term growth initiatives. We expect the investments made over the past two years, supported by continued product innovation, ever-increasing speed to market, productive lean manufacturing initiatives, and low-cost purchasing capabilities to continue to deliver net margin expansion in 2011, resulting in another record year of sales and earnings for the Company.”

2011 Business Outlook

Full year 2011 earnings are expected to be in the range of $4.65 to $4.85 per diluted share, which represents an increase of nine to 13 percent when compared to full year 2010 earnings. Net income for full year 2011 is expected to increase in the range of 14 to 20 percent over full year 2010. Sales for full year 2011 are expected to increase eight to 11 percent over full year 2010 sales, with sales increases projected in each product line and geographic region. The full year 2011 expectations include transition costs related to the manufacturing realignment in the range of $12.0 million to $14.0 million, with the majority of the costs impacting gross margins. Savings from the manufacturing realignment project are expected to begin in the second half of 2011 but will only partially offset project transition costs in 2011.

Fourth Quarter Performance Summary (in thousands except per share data)
	Three Months ended December 31,								Twelve Months ended December 31,
Product line Sales	2010			2009			Change		2010			2009			Change
Off-Road Vehicles	$	394,550		$	282,816		40	%	$	1,376,373		$	1,021,128		35	%
Snowmobiles		104,073			81,441		28	%		188,877			179,238		5	%
On-Road/Victory Motorcycles		20,640			19,139		8	%		81,624			52,811		55	%
Parts, Garments & Accessories		99,179			88,374		12	%		344,265			312,710		10	%
Total Sales	$	618,442		$	471,770		31	%	$	1,991,139		$	1,565,887		27	%
Gross profit	$	171,516		$	128,610		33	%	$	530,213		$	393,219		35	%
Gross profit as a % of sales		27.7	%		27.3	%	+40 bpts			26.6	%		25.1	%	+150 bpts
Operating expenses	$	97,589		$	63,926		53	%	$	326,348		$	245,320		33	%
Operating expenses as a % of sales		15.8	%		13.6	%	+220 bpts			16.4	%		15.7	%	+70 bpts
Operating Income	$	78,146		$	69,463		13	%	$	220,721		$	164,970		34	%
Operating Income as a % of sales		12.6	%		14.7	%	-210 bpts			11.1	%		10.5	%	+60 bpts
Net income	$	54,522		$	43,910		24	%	$	147,138		$	101,017		46	%
Net income as a % of sales		8.8	%		9.3	%	-50 bpts			7.4	%		6.5	%	+90 bpts
Diluted net income per share	$	1.55		$	1.31		18	%	$	4.28		$	3.05		40	%

Off-road Vehicles (“ORV’) sales, which include sales of both ATVs (all-terrain vehicles) and RANGER™ side-by-side vehicles, increased 40 percent during the fourth quarter 2010 from the fourth quarter 2009. This increase reflects continued 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. All North American ORV dealers are now utilizing the MVP order process as of the 2010 third quarter. North American dealer inventories of ATVs continued to decline, decreasing 33 percent from the 2009 fourth quarter and sequentially decreasing eight percent from the third quarter of 2010. Polaris’ North American ORV unit retail sales to consumers increased approximately 11 percent for the 2010 fourth quarter compared to a tougher 2009 fourth quarter comparable, with side-by-side vehicle retail sales increasing over 20 percent quarter over quarter and ATV retail sales about flat with the prior year. The Company’s newer products have been well received by consumers, including the new mid-sized RANGER side-by-side with increased power, a 4-person mid-sized RANGER Crew and the first RANGER with a diesel engine. The most recent example of the Company’s continued aggressive new product development is the introduction in January 2011 of the all-new high performance RANGER RZR XP 900 to Polaris’ recreational family of vehicles. The unique features of the RZR XP 900 include a new 88 horsepower electronic fuel injected twin cylinder engine and a new 3-link trailing arm independent rear suspension with 14-inches of travel. In addition, shipments to Bobcat of its differentiated utility vehicle continued to gain market share in the 2010 fourth quarter. Given the growth in the Company’s ORV business worldwide, Polaris has widened its market share leadership in off-road vehicles in both North America and Europe.

Snowmobile sales increased 28 percent during the 2010 fourth quarter compared to the prior year’s fourth quarter. The fourth quarter 2010 increase in sales reflects the impact of a shift in shipments of snowmobiles later in the year as the Company chose to ship its snowmobiles closer to expected consumer demand in the winter season compared to the same period last year. Polaris’ North American snowmobile retail sales to consumers increased over 40 percent for the 2010 fourth quarter compared to the 2009 fourth quarter primarily due to heavy amounts of early snowfall in many key riding areas in North America and the success of model year 2011 new product introductions. Sales of snowmobiles to customers outside of North America, principally the Scandinavian region, increased 43 percent in the fourth quarter of 2010 compared to a year ago. North American dealer inventories of snowmobiles at December 2010 are 22 percent lower than a year ago. For the full year 2010, snowmobile sales increased five percent compared to the prior year.

Sales of On-road Vehicles, which primarily consists of Victory motorcycles, increased eight percent during the fourth quarter of 2010 when compared to the same period in 2009. Victory North American unit retail sales to consumers increased 15 percent during the 2010 fourth quarter when compared to a strong 2009 fourth quarter, resulting in continued market share gains and retail sales growth for the fifth consecutive quarter. The North American heavyweight cruiser and touring motorcycle industry remained weak during the 2010 fourth quarter. However, consumer demand remains strong for Victory’s new touring models, the Cross Country™ and Cross Roads™ and the Company recently introduced the Victory High-Ball, a custom cruiser aimed at the younger rider looking for a classic factory custom motorcycle. North American dealer inventory of Victory motorcycles declined 30 percent in the 2010 fourth quarter compared to 2009 fourth quarter levels.

Parts, Garments, and Accessories (“PG&A”) sales increased 12 percent during the fourth quarter 2010 compared to the same period last year primarily due to increased ORV, Victory motorcycle and international related PG&A sales.

Gross profit as a percentage of sales was 27.7 percent for the fourth quarter of 2010, an increase of 40 basis points from 27.3 percent for the fourth quarter of 2009. Gross profit dollars increased 33 percent to $171.5 million for the fourth quarter 2010 compared to $128.6 million for the fourth quarter of 2009. The increase in gross profit dollars and the 40 basis points increase in the gross profit margin percentage in the fourth quarter 2010 resulted primarily from higher volume, continued product cost reduction efforts and higher selling prices. These increases were partially offset by manufacturing realignment costs as well as higher commodity and sales promotion costs.

Operating expenses for the fourth quarter 2010 increased 53 percent to $97.6 million, or 15.8 percent of sales, compared to $63.9 million, or 13.6 percent of sales, for the fourth quarter of 2009. Operating expenses in absolute dollars and as a percentage of sales for the fourth quarter 2010 increased primarily due to an increase in incentive compensation plan expenses of $19 million over the 2009 fourth quarter period driven by the higher profitability for 2010 and the recent higher stock price which reflects the Company’s pay for performance compensation philosophy. In addition, incremental investments made in global market expansion and new product development initiatives contributed to the increase in operating expenses in the fourth quarter.

Income from financial services decreased 12 percent to $4.2 million during fourth quarter 2010 from $4.8 million in the fourth quarter of 2009. The decrease was primarily due to lower interest income earned by Polaris Acceptance as a result of the lower dealer inventory levels.

Interest expense decreased to $0.5 million for the fourth quarter 2010, from $0.9 million for the fourth quarter 2009, due to lower interest rates on the Company’s credit facility during the 2010 fourth quarter as compared to the same period in 2009.

Non-operating other income was $0.7 million in the fourth quarter of 2010, as compared to $2.7 million of expense in the fourth 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 Company’s foreign subsidiaries.

The Income tax provision for the fourth quarter 2010 was recorded at a rate of 30.4 percent of pretax income compared to 33.3 percent of pretax income for the fourth quarter 2009. The lower income tax provision rate in the fourth quarter 2010 is primarily due to the extension of the research and development credit by the U.S. Congress in the 2010 fourth quarter.

Financial Position and Cash Flow

Net cash provided by operating activities increased 54 percent to $297.6 million for the year ended December 31, 2010 compared to $193.2 million for the full year 2009. The increase in net cash provided by operating activities for the full year 2010 was due to higher net income and lower investment in working capital, primarily resulting from higher accrued expenses, compared to the same period in 2009. Total debt was $200.0 million, of which $100.0 million was classified as current liabilities and $100.0 million was classified as long term liabilities at December 31, 2010. The Company’s debt-to-total capital ratio was 35 percent at December 31, 2010, compared to 49 percent at the end of 2009. Cash and cash equivalents were $393.9 million at December 31, 2010 compared to $140.2 million for the prior period.

Manufacturing Realignment

The previously announced manufacturing 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 statement of income in the range of $24 million to $26 million and incur capital expenditures of approximately $35 million in total 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. During 2010, $5.4 million of exit costs and $5.5 million of startup costs were incurred from the realignment, which are primarily reflected in cost of sales on the statement of income. In addition, capital expenditures of $8.6 million were incurred in 2010 related to the manufacturing realignment.

Polaris’ Board of Directors Increases Dividend for 2011

On January 20, 2011, the Company announced that its Board of Directors approved a 13 percent increase in the regular quarterly cash dividend, representing the 16th consecutive year of increased dividends, effective with the 2011 first quarter dividend payment. The first quarter dividend of $0.45 per share will be payable on February 15, 2011 to shareholders of record at the close of business on February 1, 2011.

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 fourth quarter and full year 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 #36641454.

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 2010 sales of $1.991 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 Mid-Cap 400 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 2011 sales, shipments, net income, net income per share, 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; impact of changes in Polaris stock price on incentive compensation plan costs; foreign currency exchange rate fluctuations; environmental and product safety regulatory activity; effects of weather; commodity costs; uninsured product liability claims; uncertainty in the retail and wholesale credit markets; 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.

(summarized financial data follows)

POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Data) (Unaudited)
	For Three Months Ended December 31,					For the Year Ended December 31,
	2010			2009		2010			2009
Sales	$	618,442		$	471,770	$	1,991,139		$	1,565,887
Cost of Sales		446,926			343,160		1,460,926			1,172,668
Gross profit		171,516			128,610		530,213			393,219
Operating expenses
Selling and marketing		39,973			27,769		142,353			111,137
Research and development		25,433			15,872		84,940			62,999
General and administrative		32,183			20,285		99,055			71,184
Total operating expenses		97,589			63,926		326,348			245,320
Income from financial services		4,219			4,779		16,856			17,071
Operating Income		78,146			69,463		220,721			164,970
Non-operating Expense (Income):
Interest expense		531			906		2,680			4,111
(Gain)Loss on securities available for sale		-			-		(825	)		8,952
Other expense (income), net		(691	)		2,735		325			733
Income before income taxes		78,306			65,822		218,541			151,174
Provision for Income Taxes		23,784			21,912		71,403			50,157
Net Income	$	54,522		$	43,910	$	147,138		$	101,017
Basic Net Income per share	$	1.60		$	1.35	$	4.40		$	3.12
Diluted Net Income per share	$	1.55		$	1.31	$	4.28		$	3.05
Weighted average shares outstanding:
Basic		34,070			32,526		33,450			32,399
Diluted		35,155			33,502		34,382			33,074

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
Subject to Reclassification
(In Thousands)	December 31, 2010		December 31, 2009
	(Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	393,927	$	140,240
Trade receivables, net		89,294		90,405
Inventories, net		235,927		179,315
Prepaid expenses and other		21,628		20,638
Deferred tax assets		67,369		60,902
Total current assets		808,145		491,500
Property and equipment, net		184,011		194,416
Investments in finance affiliate		37,169		41,332
Investments in manufacturing affiliates		1,009		10,536
Goodwill and Intangible assets, net		31,313		25,869
Total Assets	$	1,061,647	$	763,653
Liabilities and Shareholders’ Equity
Current Liabilities:
Borrowings under credit agreement	$	100,000		-
Accounts payable		113,248	$	75,657
Accrued expenses:
Compensation		126,781		55,313
Warranties		32,651		25,520
Sales promotions and incentives		75,494		67,055
Dealer holdback		79,688		72,229
Other		52,194		38,748
Income taxes payable		2,604		6,702
Current liabilities of discontinued operations		1,550		1,850
Total current liabilities		584,210		343,074
Long term income taxes payable		5,509		4,988
Deferred income taxes		937		11,050
Borrowings under credit agreement		100,000		200,000
Total liabilities	$	690,656	$	559,112
Shareholders’ Equity:
Total shareholders' equity	$	370,991	$	204,541
Total Liabilities and Shareholders' Equity	$	1,061,647	$	763,653

POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
Subject to Reclassification (In Thousands)	For the Years Ended December 31,
(Unaudited)	2010			2009
Operating Activities:
Net income	$	147,138		$	101,017
Adjustments to reconcile net income to net cash provided by operating activities:
(Gain) loss on securities available for sale		(825	)		8,952
Depreciation and amortization		66,519			64,593
Noncash compensation		18,050			10,226
Noncash income from financial services		(4,574	)		(4,021	)
Noncash expense from manufacturing affiliates		1,376			382
Deferred income taxes		(16,888	)		13,573
Changes in current operating items:
Trade receivables		1,111			8,192
Inventories		(56,612	)		42,997
Accounts payable		37,580			(40,329	)
Accrued expenses		107,663			(24,759	)
Income taxes payable		(3,577	)		7,735
Prepaid expenses and others, net		958			4,643
Net cash provided by continuing operations		297,919			193,201
Net cash flow used for discontinued operations		(300	)		-
Net cash provided by operating activities		297,619			193,201
Investing Activities:
Purchase of property and equipment		(55,718	)		(43,932	)
Investments in finance affiliate, net		8,737			14,254
Proceeds from sale of investments		9,601			-
Acquisition of businesses, net of cash acquired		(4,738	)		-
Net cash (used for) investing activities		(42,118	)		(29,678	)
Financing Activities:
Borrowings under credit agreement		-			364,000
Repayments under credit agreement		-			(364,000	)
Repurchase and retirement of common shares		(27,486	)		(4,556	)
Cash dividends to shareholders		(53,043	)		(50,177	)
Tax effect of proceeds from stock based compensation exercises		10,610			(410	)
Proceeds from stock issuances under employee plans		68,105			4,733
Net cash (used for) financing activities		(1,814	)		(50,410	)
Net increase in cash and cash equivalents		253,687			113,113
Cash and cash equivalents at beginning of period		140,240			27,127
Cash and cash equivalents at end of period	$	393,927		$	140,240

EX-99.2

Exhibit 99.2

Fourth Quarter & Fiscal Year 2010 Earnings Results – January 27, 2011 Polaris Industries Inc.

2 Safe Harbor Except for historical information contained herein, the matters set forth in this document, including but not limited to management’s expectations regarding 2011 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; 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. Jan 2011

Scott Wine CEO Fourth Quarter & Fiscal Year 2010 Earnings Results January 27, 2011

4 Q4 2010 Sales and Net Income Another Record Quarter for Net Income and EPS Q4 Net Income ($ in millions Q4 Sales ($ in millions) $43.9 $54.5 +24% $471.8 $618.4 +31% Jan 2011 Q4 2010 Q4 2009 Q4 2010 Q4 2009 Quarterly Earnings per Share of $1.55: highest in Polaris history – 18% increase over Q4 2009 (previous EPS record) Gross margins improved 40 basis points – Including $5 million of manufacturing realignment costs

5 Continued Solid Execution Drives Strong Performance Full Year 2010 Sales and Net Income FY Net Income ($ in millions) FY Sales ($ in millions)$101.0 $147.1 +46% $1,566 $1,991 +27% Jan 2011 FY 2010 FY 2009 FY 2010 FY 2009 Record annual sales with increases across all product lines – Revenue up 43 million over 2008’s previous record Total Company North American retail sales up 15% Record annual EPS of $4.28, up 40% over 2009 Solid investments and strong fundamentals: well-positioned for 2011

2010 Financial Metrics 6 Sales Gross Profit % Operating Profit % Net Income Net Income % Operating Cash Flow Shareholder Return $1,991 26.6% 11.1% $147.1 7.4% $297.6 82.5% METRIC 2010 Actual (millions)Jan 2011 Variance to ’09 +27% +150 bpts +60 bpts +46% +90 bpts +54% +24.8 pts (Gp:) Strong Results Across the P&L

7 Q4 2010 Revenue & N.A. Retail Sales Outlook Remains Bright for Growth Revenue (Million $) Polaris N.A. Retail Sales (Units) $471.8 $111.7 $22.6 $1.5 $10.8 $618.4 +18% +11% +15% +41% +31% Jan 2011 Polaris Revenue and N.A. Retail Sales continue to outperform industry Q4 side-by-side Retail Sales and Revenue again up significantly Overall Dealer inventory down to near-optimal level

Strategic Progress Continues … 8 Jan 2011 $1.6 Billion $3.0 Billion Grow Sales $3 Billion by 2014 Expand Net Income Margins 8% of sales by 2014 Strategy is Working – Staying on the Gas Full Year 2010 Progress 3-5 Year Strategic Initiatives Best in Powersports PLUS 5-8% organic growth Growth Through Adjacencies $100 - 300M growth Global Market Leadership >25% of Polaris revenue Operational Excellence >200 bpts operating margin improvement Strong Financial Performance Sustainable, profitable growth Net income margin 8% Sales up 27% Net Income +46% / Record EPS +40% Net income margin up 90 bpts Expanded #1 in market share in ORV Victory progress accelerating Innovation pipeline is robust Bobcat product well received M&A progressing on plan $67M National Guard award received International sales up 21% EMEA market share up in all product lines China and Brazil presence growing Established Polaris India Gross profit margins up 150 bpts Monterrey plant under construction LEAN journey continues 6.5% 8.0% 2009 2009 2014 2014

Total Company Sales (in millions)Diluted EPS Full Year 2011 Guidance 9 $1,991.1 Up 8% to 11% $2,150 to $2,210 2010 Actual 2011 Guidance $4.28 Up 9% to 13% $4.65 to $4.85 2010 Actual 2011 Guidance 2011 Sales & EPS Projection: Record High Polaris retail sales continue to accelerate, outperform the industry Net income projected up 14% to 20% Diluted EPS expected to be up 9% to 13% – EPS expected in $4.65 to $4.85 range – EPS projections include $12-$14 million manufacturing realignment cost Jan 2011

Bennett Morgan President & COO Fourth Quarter & Fiscal Year 2010 Earnings Results January 27, 2011

11 Off-Road Vehicle Division New! RANGER RZR XP 900 Polaris Sales (millions) FY 2011 Guidance FY 2010 Q4 2010 Q4 2009 $282.8 +35% $1,376.4 +40% $394.5 Up about 10% Jan 2011 2010 Summary #1 in ORV – Gained significant share in SxS and ATVs Launched 12 new/significantly improved products ATV dealer inventory down 33% - at healthy levels 2011 Objectives Grow market share again Leverage New Products to Grow Enhance MVP Dealer Retail process Grow Bobcat and Military 2011 Projection 2010 Estimate About -10% Down low-to mid-single digits N.A. ORV Industry Continued Strong Market Share Gains in Q4

RANGER RZR = Razor Sharp Performance RANGER = Hardest Working, Smoothest Riding RANGER XP Xtreme Performance RANGER Crew Full-Size 6-Passenger RANGER 400/500 Mid-Size Value RANGER 500 Crew Mid-size 4-Passenger Industry Leading Product in Every Segment Polaris Side-by-Side Product Leadership 12 Jan 2011 Only Trail Only Sport Performance Only 4-Seat Sport Only Xtreme Performance

13 Snowmobile Division $81.4 +28% $104.1 FY 2011 guidance +5% $188.9 Up modestly FY 2010 Q4 2010 Q4 2009 Polaris Sales (millions) Jan 2011 2010 Summary MY ‘11 sleds were home runs Significant quality improvements Dealer inventory down 22% from 2009 Season-to-date Industry retail sales up about 10% Polaris retail sales up over 30% season-to-date Gained share in N.A. and Scandinavia season-to-date 2011 Objectives Quality remains #1 focus area Grow market share again – clear #2 Profitability improvement from improved quality Strong Season-to-date Performance 800 Pro RMK

14 Momentum Continues Polaris Sales (millions) On-Road Division – Victory / LEV $19.1     +8% $20.6 +55% $81.6 Over +50% Up double digits (Gp:) Victory (Gp:) Industry Down modestly N.A. Motorcycle Industry 1400cc+ and Victory Retail Sales FY 2011 guidance FY 2010 Q4 2010 Q4 2009 Jan 2011 2010 Summary Gained share in both cruisers and touring in a down market Victory was profitable in Q4 2010 Dealer Inventory down 30% from 2009 2011 Objectives Sustain and grow profitability Grow market share again in N.A. & Int’l Continue to expand presence outside N.A. Down low double digits Up Over 20% FY 2010 FY 2011 Expectations New Victory High-Ball

15 PG&A Maintain High Quality and Productivity Polaris Sales (millions) 2010 PG&A Revenue by Business Unit 2010 PG&A Revenue by Product Category Other 7% Aus/NZ 13% Snow 18% Off-Road Vehicles 68% Parts 44% Accessories 52% Apparel 4% Victory 7% $88.4 +12% $99.2 FY 2011 guidance FY 2010 Q4 2010 Q4 2009 +10% $344.3 Jan 2011 2010 Summary 300+ new products introduced SxS growth up 38% from 2009 Total inventory turns up 20% 2011 Objectives Grow our very profitable business Continue to innovate with new accessory product solutions Upper single digits %

16 International Investment & Expansion Continuing International Division $81.1 +13% $91.9 +21% $305.9 Polaris Sales (millions)2010 Revenue by Geography 2010 Revenue by Business FY 2011 guidance FY 2010 Q4 2010 Q4 2009 ME / Africa 8% Latin America 8% Asia 1% Aus/NZ 14% Europe 69% Off-Road Vehicles 69% On-Road Vehicles 4% PG&A 17% Snow 10% Jan 2011 2010 Summary Profitable global growth of 21% Expanded into Brazil and China Victory sales up over 50% in Europe in 2010 Grew market share in every product line 2011 Objectives Sustain profitable growth in EMEA Establish India footprint Grow China and Brazil Grow market share again in every product line and region Up highsingle digits %

17 Manufacturing Realignment Goal: three manufacturing Centers of Excellence in Roseau, Spirit Lake and Monterrey Production expected to begin Q2 2011 in Monterrey Total investment remains in line with original forecast 2011 costs up slightly to improve plant efficiency, mitigate risk, and accelerated start-up date Savings begin in 2H 2011 Manufacturing Realignment on Plan Cost Charged to P&L (in millions) Aus/NZ 13% Capital Expenditures (in millions) Savings (in millions) Anticipated annualized savings upon completion 2011 anticipated savings in 2nd half $24 - $26 $12 - $14 $11 $35 $9 $30+ Estimated Total FY 2011 Guidance 2010 Actual Jan 2011 $23 - $25 FY 2012 Estimate FY 2012 anticipated savings Estimated Total Capital FY 2011 Guidance 2010 Actual FY 2012 Estimate

Monterrey Facility 425,000 sq. ft. with incubator bldg for startup, staging, and training Currently at 50% beneficial occupancy Increased security capabilities: cameras, fencing, truck tracking, escorts, etc. Roseau transition on plan: tube fabrication, engine assembly Osceola transition progressing - Sold in-place stamping operations and outsourced seat manufacturing Jan 2011 World Class Manufacturing Facility when Completed 18

19 Operational Excellence – Inventory Healthy Distribution Channel; Lean Initiatives will Lower Factory Inventory North American Polaris Dealer Inventory Levels MVP rolled out to remaining 50% of N.A. ORV dealers in 2010 Dealer Inventory down 20% from 2009; Victory down 30% from 2009; Core ATVs down 33% from 2009 Down 5% sequentially from Q3 2010 At healthy levels Jan 2011 -20% -5% -10% 2006 2007 2008 2009 2010 -24% -9% 32% -2% -5% 2006 2007 2008 2009 2010 -19% 14% Worldwide Factory Inventory Factory Inventory up 32% from 2009 due to: Significant volume increases Global expansion Turns improved by 25% Improvement in 2011 anticipated

20 Operational Excellence - Full Year 2010 Margins Net Income as a Percent of Sales Gross Margins Gross Margin Operating Expense KTM Loss in 2009 Income Taxes /Other FY 2009 FY 2010 25.1% 26.6% 6.5% 7.4% +150 bpts Gross margins continue to improve driven by: Production volume increase Continued value engineering investment and sourcing strategies New product development and innovation – Greater than 2/3 of sales are from products introduced in past 4 years Speed-to-market significantly improved Jan 2011 Expect Gross and Net Income Margins to Expand Again in 2011

Mike Malone V.P. Finance and CFO Fourth Quarter & Fiscal Year 2010 Earnings Results January 27, 2011

22 2011 Full Year Guidance Product Line Sales - Off-Road Vehicles Snowmobiles - On-Road Vehicles - PG&A Total Company Sales Gross Margins Operating expenses Income Taxes Net Income EPS, Diluted Share Count Up about 10% Up modestly Up over 50%, again Upper single digits %Up 8% to 11% Up to 40 bpts improvement Down as a percent of sales 33.5% to 34.0% of pretax income Up 14% to 20% $4.65 - $4.85 (+9% to +13%)Increase over 2010 METRIC GUIDANCE

23 Gross Profit Margin Percentage Trends (Gp:) Improvement to gross profit margin % (Gp:) Impairment to gross profit margin % (Gp:) Neutral to gross profit margin % Jan 2011 Prior Period 27.3% 25.1% 26.6% 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 Change

24 Financial Services Income Retail Credit is Available for Qualified Customers 2010 wholesale credit income from PA joint venture = $12.7 million, down 7% Retail credit approval rates and penetration rates at acceptable levels 2011 retail credit income expected to increase Retail Credit – HSBC, GE & Sheffield combined Financial Services Income by category Same % growth as Sales growth $17.1 $ in millions Other Activities Wholesale Credit Retail Credit Approval Rate Penetration Rate 2009 2010 2009 2010 Q4 2009 Q4 2010 Jan 2011 2011 Guidance $16.9 2009 2010 Q4 2009 Q4 2010

25 Balance Sheet and Liquidity Profile Jan 2011 $ In Millions (except per share and interest rate data) 2010 Fav (Unfav) 2009 2011 Full Year Guidance Cash Total Debt – ending Credit Facility (expires December 2011) Average debt outstanding Debt Interest Rate – ending (variable) Factory Inventory Capital Expenditures Depreciation & Amortization Operating cash flow Dividend Increa $100 private placement TBB – Approx. $150 Increasing Lower $ and better turns than 2010 $70 to $80 (includes manufacturing realignment) $65 to $70 Slightly less Increased 13% to $1.80 per share $393.9 $200.0 $450.0 $200.0 0.65% $235.9 $55.7 $66.5 $297.6 $1.60 per share $253.7 $0.0 $68.1 0.14 ($56.6) ($11.8) $1.9 $104.4 $0.04 per share

Scott Wine CEO Fourth Quarter & Fiscal Year 2010 Earnings Results January 27, 2011

Summary 27 Jan 2011 US Economy aided by a more business-friendly Washington Planning for ~3% growth; developing economies outpace US & Europe Powersports competition will increase; markets probably will not Make Growth Happen theme unchanged; ORV extends #1 position Remain focused on market share expansion throughout the world Manufacturing realignment front and center Monterrey plant expected to begin production in 2nd Quarter Operational Excellence & LEAN will drive incremental benefit International presence and growth accelerate– China, Brazil, India Officially open EMEA HQ in Q1 2011 Victory & Snow poised for profitable growth Margin expansion will remain a top priority 27 Expect Strong Performance & Results in 2011

28 Thank you. Q & A Polaris Industries Inc. Jan 2011