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): April 20, 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 April 20, 2011, Polaris Industries Inc. (the “Company”) issued a press release announcing the Company’s first quarter financial results for the reporting period ended March 31, 2011.  On April 20, 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 April 27, 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 April 20, 2011 of Polaris Industries Inc.
99.2	Presentation materials dated April 20, 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:	April 20, 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 April 20, 2011 of Polaris Industries Inc.
99.2	Presentation materials dated April 20, 2011 of Polaris Industries Inc.

EX-99.1

Exhibit 99.1

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

Polaris Reports Record First Quarter 2011 Results; EPS
Increased 127% to $1.34 on 49% Sales Growth

First Quarter Highlights:

• Net income increased 139% to $47.3 million or $1.34 per diluted share with sales increasing 49% to $537.2 million, representing a record for both sales and earnings for the first quarter.
• All product lines and geographic regions experienced increased sales during the 2011 first quarter.
• Gross margin percentage increased 210 basis points to 28.3% due to lower product and warranty costs, higher selling prices, and positive currency movements.
• Raising guidance for full year 2011 earnings to a range of $5.53 to $5.68 per diluted share, a 29% to 33% increase over full year 2010 based on expected full year 2011 sales growth of 17% to 20%.
• Polaris also announced in a separate press release the acquisition of Indian Motorcycle Company, the maker of America’s first motorcycle.

MINNEAPOLIS--(BUSINESS WIRE)--April 20, 2011--Polaris Industries Inc. (NYSE:PII) today reported record first quarter net income of $47.3 million, or $1.34 per diluted share, for the quarter ended March 31, 2011. By comparison, 2010 first quarter net income was $19.8 million, or $0.59 per diluted share. Sales for the first quarter 2011 totaled $537.2 million, an increase of 49 percent from last year’s first quarter sales of $361.7 million.

“We are extremely pleased with our first quarter results, as the momentum we built throughout 2010 continued into 2011. Retail demand for Polaris products in North America remained strong throughout the first quarter and we continued to gain market share. Our International business also remained strong with sales increasing 21 percent and we celebrated the grand opening of our European headquarters in Switzerland during the quarter. As a result of continuous improvement efforts directed at cost reduction and profitability enhancements, we generated significant margin expansion. In the first quarter, gross margin improved by 210 basis points and net income margin increased 330 basis points to 8.8 percent of sales,” commented Scott Wine, Polaris’ Chief Executive Officer. “In addition to our strong first quarter results, we are excited to announce the completion of the purchase of Indian Motorcycle Company, the maker of America’s first motorcycle. This transaction will complement and enhance our on-road product portfolio, and afford Polaris the opportunity to bring our world-class engineering, manufacturing, and distribution capabilities to an iconic American brand in the heavyweight motorcycle market.”

“Given our excellent start to the year we are significantly raising our expectations for sales and earnings for the full year 2011,” continued Wine. “We will continue to make prudent strategic investments and our strong balance sheet, with $346 million in cash on hand and only $200 million in debt at March 31, 2011, gives us the strength and flexibility to remain aggressive in identifying opportunities to accelerate growth. In addition, product innovation remains at the forefront of our strategy, as evidenced by our January launch of the all-new RANGER RZR XP™ 900 recreational vehicle and the Victory High-Ball™ custom cruiser, in addition to the March introduction of our model year 2012 snowmobiles.”

2011 Business Outlook

Based on Polaris’ performance during the 2011 first quarter and projections for the remainder of the year, the Company is increasing its full year sales and earnings guidance for 2011. The Company now expects full year 2011 earnings to be in the range of $5.53 to $5.68 per diluted share, an increase of between 29 and 33 percent over earnings of $4.28 per diluted share for the full year 2010. 2011 full year sales are now expected to grow in the range of 17 to 20 percent. Revised full year 2011 expectations include the dilutive impact of integrating the Indian Motorcycle acquisition and transition costs related to ongoing manufacturing realignment.

First Quarter Performance Summary (in thousands except per share data)
	Three Months ended March 31,
Product line Sales	2011	2010	Change
Off-Road Vehicles	$ 388,019	$ 250,403	55%
Snowmobiles	8,935	5,554	61%
On-Road Vehicles/Victory Motorcycles	44,908	25,353	77%
Parts, Garments & Accessories	95,336	80,398	19%
Total Sales	$ 537,198	$ 361,708	+49%
Gross profit	$ 151,835	$ 94,914	+60%
Gross profit as a % of sales	28.3%	26.2%	+210 bpts
Operating expenses	$ 87,538	$ 67,234	+30%
Operating expenses as a % of sales	16.3%	18.6%	-230 bpts
Operating Income	$ 69,583	$ 31,936	+118%
Operating Income as a % of sales	13.0%	8.8%	+420 bpts
Net income	$ 47,310	$ 19,771	+139%
Net income as a % of sales	8.8%	5.5%	+330 bpts
Diluted net income per share	$ 1.34	$ 0.59	+127%

Off-Road Vehicle (“ORV”) sales during the first quarter 2011, comprised of sales of ATVs (all-terrain vehicles) and RANGER™ side-by-side vehicles, increased 55 percent from the first quarter 2010 to $388.0 million. This increase reflects significant market share gains for both ATVs and side-by-side vehicles driven by new product offerings including the recently introduced RANGER RZR XP 900 and increased sales in our adjacency businesses of military and Bobcat. North American consumer retail sales increased 12 percent for the 2011 first quarter from the first quarter last year, with side-by-side vehicle retail sales increasing significantly while ATV retail sales were down slightly. North American dealer inventories of ORVs for the 2011 first quarter were down slightly from the first quarter of 2010. Sales of ORVs outside of North America increased 20 percent in the first quarter 2011 when compared to the first quarter 2010, due to market share gains in both ATVs and side-by-side vehicles, positive mix benefit from increased sales of higher priced side-by-side vehicles, and positive currency benefit from the weaker US dollar.

Snowmobile sales totaled $8.9 million for the 2011 first quarter compared to $5.6 million for the first quarter of 2010. Historically, the first quarter is a slow quarter for snowmobile shipments. Sales increased primarily due to an increase in shipments to customers outside of North America in the 2011 first quarter compared to the first quarter last year. The North American snowmobile industry finished the season strong with industry retail sales up seven percent for the season ending March 31, 2011 due to the heavy snowfall during the past winter. Season-end North American dealer inventories for Polaris snowmobiles decreased over 40 percent from last year and are at their lowest levels in 16 years due to the positive industry trends and significant market share gains for the season. During the quarter the Company introduced nine new model year 2012 snowmobiles with industry-leading innovation and technology, including additional models with reduced vehicle weight and the award-winning PRO-RIDE™ progressive rear suspension. Additionally, the Company introduced the industry’s first Adventure snowmobile, the Switchback Adventure, combining wind protection, storage, high performance, and comfort in one purpose-built snowmobile.

Sales of the On-Road Vehicles division, comprised primarily of Victory motorcycles, increased 77 percent to $44.9 million during the first quarter of 2011 when compared to the same period in 2010. Polaris sales of On-Road Vehicles to customers outside of North America increased 59 percent during the 2011 first quarter compared to the prior year’s first quarter. In a positive sign for the industry, the North American heavyweight cruiser and touring motorcycle retail sales declined only slightly during the 2011 first quarter compared to the prior year’s first quarter. Worldwide, Victory unit retail sales were up modestly during the 2011 first quarter, with North American retail sales down slightly and retail sales outside of North America increasing. North American dealer inventory of Victory motorcycles for the 2011 first quarter remained approximately equal to comparable 2010 levels. Yesterday, the Company announced the acquisition of Indian Motorcycles, a legendary motorcycle brand which, over time, will help accelerate the growth of Polaris’ global motorcycle business (see the individual press release issued April 19, 2011 for additional information regarding this acquisition).

Parts, Garments, and Accessories (“PG&A”) sales increased 19 percent during the first quarter 2011 compared to the same period last year primarily due to increased RANGER™ side-by-side vehicle and snowmobile related PG&A sales.

Gross profit was 28.3 percent of sales for the first quarter of 2011, an increase of 210 basis points from 26.2 percent for the first quarter of 2010. Gross profit dollars increased 60 percent to $151.8 million for the first quarter of 2011 compared to $94.9 million for the first quarter of 2010. The increase in gross profit dollars and the 210 basis point increase in the gross profit margin percentage in first quarter 2011 resulted primarily from the benefit of continued product cost reduction efforts, lower warranty costs, higher selling prices, and favorable currency movements partially offset by the manufacturing realignment costs and negative product mix when compared to the first quarter of last year.

Operating expenses for first quarter 2011 increased 30 percent to $87.5 million or 16.3 percent of sales, compared to $67.2 million or 18.6 percent of sales for the first quarter of 2010. Operating expenses in absolute dollars for the first quarter of 2011 increased primarily due to planned strategic investments in the business and increased incentive compensation plan expenses due to the higher expected profitability and the current higher stock price in 2011.

Income from financial services was $5.3 million during first quarter 2011 compared to $4.3 million in the first quarter of 2010 primarily a result of the increased profitability generated from the retail credit portfolios with GE, HSBC and Sheffield.

Non-operating other income was $3.2 million in the first quarter of 2011, as compared to $0.2 million of expense in the first quarter of 2010. The increase in 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 provision for Income taxes for the first quarter 2011 was recorded at a rate of 34.5 percent of pretax income compared to 36.3 percent of pretax income for the first quarter 2010. The lower income tax provision rate in the first quarter 2011 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 to $4.8 million for the first quarter ended March 31, 2011 compared to $3.8 million for the first quarter of 2010. The increase in net cash provided by operating activities for the 2011 first quarter was due to increased net income, mostly offset by a higher investment in working capital, primarily resulting from higher accounts receivable compared to the same period in 2010. Total debt was $200.0 million, of which $100.0 million was classified as current and $100.0 million was classified as long term at March 31, 2011. During the 2011 first quarter, the Company paid $31.0 million to repurchase and retire 0.4 million shares of Polaris common stock. The Company’s debt-to-total capital ratio was 34 percent at March 31, 2011, compared to 48 percent at the same period in 2010. Cash and cash equivalents were $345.9 million at March 31, 2011 compared to $124.4 million for the same period in 2010.

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 essentially complete on the new facility in Monterrey and initial ORV production has begun. The Company expects shipments from the facility to begin in the second quarter. Manufacturing realignment costs charged to the statement of income are expected to total in the range of $24.0 million to $26.0 million, pretax, and capital expenditures for the project are expected to total approximately $35.0 million. The Company expects to realize annual pretax savings in excess of $30.0 million when the transition is completed. During the first quarter of 2011, $6.6 million of exit and 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 $6.5 million were incurred in the first quarter 2011 related to the manufacturing realignment. Recently, Polaris also announced it will keep some of its engine manufacturing operations in Osceola, Wisconsin, due to the significant increase in the Company’s product volume. Previously the Company had planned to close or sell its entire Osceola operations (See separate press release issued on April 19, 2011 for additional details).

Conference Call and Webcast Presentation

Today at 9:00 AM (CT) Polaris Industries Inc. will host a conference call and webcast to discuss Polaris’ 2011 first quarter earnings results released this morning. The call will be hosted by Scott Wine, CEO, Bennett Morgan, President and COO, and Mike Malone, Vice President-Finance and CFO. A slide presentation and link to the audio webcast will be posted on the Investor Relations page of the Polaris web site at www.polarisindustries.com/irhome approximately 30 minutes before the conference call begins.

To listen to the conference call by phone, dial 800-374-6475 in the U.S. and Canada, or 973-200-3967 internationally. The Conference ID is # 36643140.

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; acquisition integration costs; 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.

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
	For Three Months Ended March 31,
	2011			2010
Sales	$	537,198		$	361,708
Cost of Sales		385,363			266,794
Gross profit		151,835			94,914
Operating expenses
Selling and marketing		37,213			30,098
Research and development		22,999			18,738
General and administrative		27,326			18,398
Total operating expenses		87,538			67,234
Income from financial services		5,286			4,256
Operating Income		69,583			31,936
Non-operating Expense (Income):
Interest expense		511			699
Other expense (income), net		(3,201	)		180
Income before income taxes		72,273			31,057
Provision for Income Taxes		24,963			11,286
Net Income	$	47,310		$	19,771
Basic Net Income per share	$	1.38		$	0.60
Diluted Net Income per share	$	1.34		$	0.59
Weighted average shares outstanding:
Basic		34,268			33,069
Diluted		35,331			33,750

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
Subject to Reclassification	March 31, 2011		March 31, 2010
Assets
Current Assets:
Cash and cash equivalents	$	345,921	$	124,395
Trade receivables, net		121,696		91,335
Inventories, net		244,436		180,316
Prepaid expenses and other		20,556		18,682
Deferred income taxes		68,863		61,667
Total current assets		801,472		476,395
Property and equipment, net		184,553		189,433
Investments in finance affiliate		38,517		37,422
Investments in manufacturing affiliates		990		9,792
Goodwill and intangible assets, net		31,551		27,890
Total Assets	$	1,057,083	$	740,932
Liabilities and Shareholders’ Equity
Current Liabilities:
Current portion of long term borrowings under credit agreement	$	100,000	$	—
Accounts payable		132,210		89,722
Accrued expenses:
Compensation		98,912		39,190
Warranties		31,029		22,344
Sales promotions and incentives		76,118		65,805
Dealer holdback		52,263		48,068
Other		56,934		38,800
Income taxes payable		12,245		3,562
Current liabilities of discontinued operations		1,550		1,850
Total current liabilities		561,261		309,341
Long term income taxes payable		5,835		5,087
Deferred income taxes		811		14,143
Borrowings under credit agreement		100,000		200,000
Total liabilities		667,907		528,571
Shareholders’ Equity:
Total shareholders’ equity		389,176		212,361
Total Liabilities and Shareholders’ Equity	$	1,057,083	$	740,932

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Subject to Reclassification	For the Three Months Ended March 31,
	2011			2010
Operating Activities:
Net income	$	47,310		$	19,771
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		18,782			16,037
Noncash compensation		4,590			3,559
Noncash income from financial services		(1,178	)		(1,204	)
Noncash loss from manufacturing affiliates		20			643
Deferred income taxes		(1,402	)		2,466
Changes in current operating items:
Trade receivables		(30,276	)		(930	)
Inventories		(5,395	)		(1,001	)
Accounts payable		18,962			14,065
Accrued expenses		(53,035	)		(44,658	)
Income taxes payable/receivable		9,967			(3,041	)
Prepaid expenses and others, net		(3,115	)		(1,901	)
Net cash provided by operating activities		4,784			3,806
Investing Activities:
Purchase of property and equipment		(18,968	)		(8,126	)
Investments in finance affiliate, net		(170	)		5,114
Acquisition of business, net of cash acquired		—			(2,500	)
Net cash used for investing activities		(19,138	)		(5,512	)
Financing Activities:
Repurchase and retirement of common shares		(30,964	)		(27,166	)
Cash dividends to shareholders		(15,315	)		(13,096	)
Proceeds from stock issuances under employee plans		9,005			22,125
Tax effect of proceeds from stock based compensation exercises		2,452			3,998
Net cash used for financing activities		(34,822	)		(14,139	)
Impact of currency translation on cash balances		1,170			—
Net decrease in cash and cash equivalents		(48,006	)		(15,845	)
Cash and cash equivalents at beginning of period		393,927			140,240
Cash and cash equivalents at end of period	$	345,921		$	124,395

EX-99.2

Exhibit 99.2

First Quarter 2011 Earnings Results April 20, 2011

Title:Safe Harbor Body: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; acquisition integration 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. April 2011

First Quarter 2011 Earnings Results April 20, 2011 Scott WineCEO

Title:Q1 2011 Sales and Net Income Q1 Net Income ($ in millions)Q1 Sales ($ in millions)$19.8$47.3+139%$361.7$537.2+49%Q1 2011Q1 2010Q1 2011Q1 2010Record first quarter sales and net income Record first quarter earnings per share of $1.34, up 127% over Q1 2010 Gross margins improved 210 basis points – Including $6.5 million of manufacturing realignment costs Record First Quarter Sales, Net Income and EPS April 2011

Title: Acquisition – Indian Motorcycle Company Storied history and distinguished heritage:   First US motorcycle company, founded 1901   Strong, recognizable American brand   First major OEM owner in 70 years   Distinct styling and appeal  Strategic Fit With Victory and Indian, Polaris will:   Appeal to 60% of Heavyweight buyers   Build stronger, more profitable dealer network   Create infrastructure economies of scale   Develop new, iconic Indian products April 2011 Chief Classic Chief Vintage N.A. Heavyweight Motorcycle Segments Indian Background Projected Indian Revenue Progression Product Improvement Heritage Bike Re-Launch Global Distribution Expansion (Gp:) M O T O R C Y C L E ~ $4B Market

Title:Strategic Progress Continues…$1.6 Billion $3.0 Billion Grow Sales $3 Billion by 2014 Expand Net Income Margins>8% of sales by 2014 Execution on Track Q1 2011 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 revenueOperational Excellence>200 bpts operating margin improvementStrong Financial PerformanceSustainable, profitable growth Net income margin >8% Sales up 49% Net Income +139% / EPS +127% Net income margin up 330 bpts to 8.8% Grew #1 market share position in ORVNew Ranger RZR XP 900 retailing rapidlyInnovation pipeline remains robustNine new MY ‘12 Snowmobiles introduced Completed Indian Motorcycle acquisitionBobcat sales & retail demand increasingMilitary sales up significantly International sales up 21% Side-by-Side and Victory presence growingEuropean Headquarters established Gross profit margins up 210 bpts Monterrey plant to begin shipments in Q2LEAN journey ongoing with strong results   6.5% >8.0% 2009 2009 2014 2014 April 2011

Total Company Sales (in millions) Diluted EPS Title:Full Year 2011 Guidance $1,991 Up 17% to 20% $2,330 to $2,3902010 Actual2011 Guidance$4.28Up 29% to 33%$5.53 to $5.682010 Actual2011 Guidance2011 Sales & EPS Projections RaisedRetail sales growth continues to outdistance the industry Net income dollars projected up 35% to 39% - Net income margin improvement accelerating Diluted EPS expected to be up 29% to 33% - EPS expected in $5.53 to $5.68 range April 2011

First Quarter 2011 Earnings ResultsApril 20, 2011 Bennett MorganPresident & COO

Title: Q1 2011 Revenue & N.A. Retail Sales Growth Remains Strong Revenue (Million $)Polaris N.A. Retail Sales (Units) $361.7$137.6$3.4$19.6 $14.9$537.2+13%+12%-4%+25%+49%Q1 side-by-side Retail Sales and Revenue again up significantly Polaris Revenue and N.A. Retail Sales continue to outperform industry International, PGA, Bobcat & Military growth contributing significantly to revenue increase above N.A. retail Overall Dealer inventory at optimal level - down 7% April 2011

Title: Off-Road Vehicle Division New! RANGER RZR XP 900Polaris Sales (millions)FY 2011 Guidance FY 2010Q1 2011Q1 2010 $250.4+35% $1,376.4+55% $388.0#1 in ORV - Gained significant share in SxS and ATVs again New Ranger RZR XP 900 launch in January selling very well International ORV sales increased 20% Total ORV dealer inventory down slightly from last year2011 ProjectionQ1 Industry Estimate Down low-to mid-single digits N.A. ORV Industry Continued Strong Market Share Gains in Q1 April 2011+ Upper teens %About-5%Q1 2011 Summary

Title: Adjacencies Bobcat vehicle retail momentum increasingCo-developed vehicle on-track to push further into work side-by-sides Bobcat Strategic Alliance Military Bobcat Partnership – Progressing well Polaris Defense –Gaining momentum April 2011 Shipped initial vehicles under $67M National Guard contract in Q1Received 1st Air Guard orderGaining traction in International markets with military productsReceived $5M order for Afghan National Security Forces – shipping in Q2

Title: Snowmobile Division $5.6+61%$8.9FY 2011guidance +5%$188.9Up about 30%FY 2010Q1 2011Q1 2010Polaris Sales (millions) Strong retail sales performance – Polaris N.A. retail up 31% for the seasonClear #2 in market share; largest share gaining OEM for seasonQuality issues resolvedDealer inventory down 41% - lowest levels since 1995Introduced 9 new MY ‘12 models Expanded PRO-RIDE progressive rate rear suspension technologyIntroduced industry's first Adventure sled, the Switchback Adventure Strong Season Performance April 2011 Season-end3/31/10 Season-end3/31/11 +7% Switchback Adventure N.A. Snowmobile Industry Sales Q1 2011 Summary

Title:On-Road Division – Victory / LEV Polaris Sales (millions) Improvements Continue April 2011 N.A. Motorcycle Industry 1400cc+ Q1 2011 Summary Worldwide Victory retail sales increased modestlyN.A. unit retail sales down slightlyInternational unit retail sales up significantlyDealer Inventory about flat with 2010New High-Ball bike tracking well to expectations begins shipping in Q2Added 10 net new dealers in Q1 New Victory High-Ball™ $25.4 +77% $44.9 +55% $81.6 Over +50% FY 2011guidance Q1 2011 Q1 2010 FY 2010 2011Projection Q1 2011 Down low-single digits  Down low-single digits   

Title: PG&A Highest Margin Business Continues to Grow & Deliver Polaris Sales (millions) Q1 2011 PG&A Growth by Product line Q1 2011 PG&A Revenue by Product Category Aus/NZ 13% Parts 54% Accessories 44% Apparel 2% $80.4 +19% $95.3 FY 2011 guidance FY 2010 Q1 2011 Q1 2010 +10% $344.3 Margins remain strong. Total inventory turns up 5%; accessory turns up 20%+ International PG&A Sales up 14% + low teens % April 2011 ORV Snow On-Road Other +22% +12% +34% +10% Q1 2011 Summary

Title: International Division International Investment & Expansion Continuing $75.1 +21% $91.1 +21%$305.9 Polaris Sales (millions) Q1 2011Revenue by Geography Q1 2011 Revenue by Business FY 2011guidance FY 2010 Q1 2011 Q1 2010 ME / Africa 9% Latin America 8% Asia 1% Aus/NZ 12% Europe 70% Off-Road Vehicles 64% On-Road Vehicles 8% PG&A 18% Snow 10% Profitable global growth of 21% - growth from all regions: EMEA, Asia Pacific, Latin AmericaSide-by-Side sales up over 50%, primarily in EuropeOn-Road / Victory sales up 59%; gaining shareEMEA Headquarters opened in SwitzerlandRemain clear ORV market share leader in Europe Up 15% to 20% April 2011 Q1 2011 Summary

Title: Manufacturing Realignment Goal:  3 Manufacturing Centers of Excellence in Roseau, Spirit Lake and MonterreyMonterrey building is complete on-time and on budget; 100% occupancyProduction of RANGER product began in April; shipments to begin in Q2Roseau tube fabrication transition is on trackOsceola transition progressingSold in-place stamping operations and outsourced seat manufacturing transitioning wellSnowmobile & Motorcycle Engine production to remain at Osceola under Polaris World Class Manufacturing Facility April 2011

Title: Impact of Japan crisis on material supply Fuji Tokyo Less than 10% of cost of sales comes from JapanPolaris global supply chain less dependent than competitors and automotiveAbout 40% of Polaris engines are produced by Fuji  Facility damage is minimalEngines are being produced and shipping to our requirements to-dateMonitoring impact on all Tier 1 and sub-suppliers.  Minimal impact detected to-dateCurrently have supply to support production through end of May – no critical supply issues have emerged Map not to scale Tsunami Impact Area No Significant Supply Issues Have Emerged April 2011

Title: Operational Excellence - Q1 2011 Margins Net Income as a Percent of Sales Gross Margins GrossMargin OperatingExpense Other Non-Operating Income IncomeTaxes/Other Q1 2010 Q1 2011 26.2% 28.3% 5.5% 8.8% +210 bpts Gross margins continue to improve driven by:Continued value engineering investment and sourcing strategiesHigher selling prices and currency benefitsQuality is improving – warranty claims down 20% in Q1Net income margins at record highsHave deferred and/or mitigated significant commodity inflation to-date.  Expect modest pressure in balance of year for steel, aluminum, plastic, and diesel Expect Gross and Net Income Margins to Expand Again in 2011 April 2011

First Quarter 2011 Earnings ResultsApril 20, 2011 Mike MaloneV.P. Finance and CFO

Title:2011 Full Year Revised Guidance  METRIC GUIDANCE Product Line Sales   - Off-Road Vehicles   - Snowmobiles   - On-Road Vehicles   - PG&A   - InternationalTotal Company SalesGross MarginsOperating expensesIncome TaxesNet IncomeEPS, DilutedShare Count Upper teens %Up about 30%Up over 50%, againUp low teens %Up 15% to 20%Up 17% to 20% Up to 90 bpts improvement Down as a percent of sales34.0% to 34.5% of pretax income Up 35% to 39% $5.53 - $5.68 (+29% to +33%)Increase over 2010 April 2011

Title: Gross Profit Margin Percentage Trends Actual Q1 2010 Actual Q1 2011 Full Year Guidance 2011 Prior Period 24.5% 26.2% 26.6% 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 26.2% 28.3% Up to 27.5% Change +170 bpts +210 bpts Up to +90 bpts Improvement to gross profit margin %  Impairment to gross profit margin % Neutral to gross profit margin % April 2011

Title: Manufacturing Realignment 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 $7 $35 $7 $30+ Estimated Total FY 2011 Guidance Q1 2011Actual $23 - $25 FY 2012 Estimate FY 2012 anticipated savings Estimated Total Capital FY 2011 Guidance FY 2012 Estimate April 2011 Q1 2011Actual Costs & savings projections unchanged Majority of costs incurred through 1st half of 2011 Savings begin in 2H 2011Snow and motorcycle engine production to remain in Osceola; change not material to projections Manufacturing Realignment Remains on Plan April 2011

Title: Balance Sheet and Liquidity Profile   $ In millions (except per share and interest rate data) Q1 2011 Fav (Unfav) Q1 2010 2011 Full Year Guidance Cash $345.9 $221.5 Increase Total Debt – ending $200.0 $0.0 $100 private placement Credit Facility (expires December 2011) $450.0 -- TBD Debt Interest Rate - ending (variable) 0.64% 0.12% Increasing with private placement Factory Inventory $244.4 ($64.1) Lower $ and better turns than 2010 Capital Expenditures $19.0 ($10.8) $70 to $80 (includes manufacturing realignment) Depreciation & Amortization $18.8 $2.7 $65 to $70 Operating cash flow $4.8 $1.0 Increase slightly Dividend $0.45  per share $0.05 per share Increased 13% to $1.80 per share Retail Credit  – Approval Rate– Penetration Rate 57% 35% +4% pts +2% pts Slightly improved Stabilized Strong Financial Position April 2011

First Quarter 2011 Earnings Results April 20, 2011 Scott WineCEO

Title: Excellent Start to 2011 Powersports momentum continuesRanger & RZR performance is strong, industry improvingSnow share gains and orders point to significant sales and profit growthVictory global growth plans on trackManufacturing realignment on planMonterrey plant began Ranger production in early April; engine production will begin this summer Snow & Victory engines to remain at Osceola, WI plantProject costs and savings adhering to budgetCommodity costs slightly higher than budget, but manageableOperational Excellence and LEAN initiatives will help offset increasesJapanese supply chain challenges closely watched, under controlAdjacency strategy gaining velocityIndian brand offers great potential; execution requirements perfect fit for Polaris capabilitiesMilitary and Bobcat will post significant year over year growth International growth and expansion ongoingAll regions generated revenue growth in Q1Margin expansion accelerating Expect Record Performance in 2011 April 2011

Thank you.  Q & A Polaris Industries Inc. April 2011