8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 24, 2012

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:

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

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

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

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

Item 2.02 Results of Operations and Financial Condition.

On July 24, 2012, Polaris Industries Inc. (the “Company”) issued a press release announcing the Company’s second quarter 2012 financial results for the reporting period ended June 30, 2012.  On July 24, 2012, the Company also hosted its quarterly earnings conference call, which was accessible to the public.  A recording of the conference call will be available through the end of the business day on July 31, 2012 by dialing 855-859-2056 in the U.S. and Canada, or 404-537-3406 for international calls and entering passcode 65257762, and on the Company’s website, www.polarisindustries.com/irhome.

A copy of the Company’s press release is furnished as Exhibit 99.1 attached hereto and a copy of the presentation materials discussed during the conference call is being furnished as Exhibit 99.2 to this Current Report on Form 8-K.  

Item 7.01 Regulation FD Disclosure.

The disclosures set forth in Item 2.02 above are hereby incorporated by reference into this Item 7.01.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press Release dated July 24, 2012 of Polaris Industries Inc.
99.2	Presentation materials dated July 24, 2012 of Polaris Industries Inc.

The information contained in this Current Report is furnished and not deemed to be filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.  The information in this Current Report shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:	July 24, 2012
		POLARIS INDUSTRIES INC.
		/s/ Michael W. Malone
		Michael W. Malone
		Vice President – Finance and
		Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release dated July 24, 2012 of Polaris Industries Inc.
99.2	Presentation materials dated July 24, 2012 of Polaris Industries Inc.

EX-99.1

Exhibit 99.1

CONTACT:

Polaris Industries Inc.

Richard Edwards, 763-542-0500

POLARIS REPORTS RECORD SECOND QUARTER 2012 RESULTS; EPS INCREASED 44% TO $0.98 WITH SALES GROWTH OF 24%

Company increases full year 2012 guidance

Second Quarter Highlights:

● Net income increased 43% to $69.8 million, or $0.98 per diluted share, with sales increasing 24% to $755.4 million, setting second quarter sales and earnings records.  

● North American retail sales sustained considerable momentum, rising 17% year-over-year in the second quarter.  

● All product lines experienced increased sales during the 2012 second quarter.  

● Raising guidance for full year 2012 earnings to a range of $4.05 to $4.15 per diluted share, up 27% to 30% over 2011 based on expected full year 2012 sales growth of 14% to 17%.

 MINNEAPOLIS--(BUSINESS WIRE)--July 24, 2012--Polaris Industries Inc. (NYSE: PII) today reported record second quarter net income of $69.8 million, or $0.98 per diluted share, for the quarter ended June 30, 2012, up 43 percent from the prior year’s second quarter net income of $48.7 million, or $0.68 per diluted share. Sales for the second quarter 2012 totaled a record $755.4 million, an increase of 24 percent over last year’s second quarter sales of $607.9 million.

 Scott Wine, Polaris’ Chief Executive Officer, commented, “While the weak U.S. economy and likely recession in Europe are concerning, we continue to see strength in our core North American Powersports business. Our investments in adjacent markets and international expansion are paying dividends, and we are excited to have Eicher Motors Limited as a joint venture partner to aggressively pursue growth in India. The strong second quarter results were driven by solid strategic execution combined with end-market demand that is healthier than a year ago.”

 Polaris’ North American retail sales to consumers climbed 17 percent during the quarter propelled by strong demand for our innovative products and supported by continued growth in the industry off-road vehicle and motorcycle markets. As a result, our Off-Road Vehicles business increased wholesale sales to dealers 20 percent during the quarter. Our On-Road Vehicles business also experienced strong demand, up 110 percent, which reflects ongoing consumer enthusiasm for our expanding line of motorcycles worldwide and the importance of our diversification efforts.

 “We are extremely pleased with our success during the second quarter, but we remain mindful of the uncertainty surrounding the overall economic environment in Europe and North America. As we continue investing in our future growth, such as the recently announced joint venture with Eicher, we are prepared to react quickly to sales velocity changes in our businesses,” continued Wine. “Given the ongoing strength in our overall business as well as the anticipated success of several new model year 2013 vehicles to be unveiled next week at our dealer meeting, we are raising our expectations for sales and earnings for the full year 2012. We believe this continues to be a great time to be a Polaris shareholder.”

1

2012 Business Outlook

 Based on Polaris’ performance in the first half of 2012 and projections for the remainder of the year, the Company is increasing its 2012 full year sales and earnings guidance. The Company now expects full year 2012 earnings to be in the range of $4.05 to $4.15 per diluted share, an increase of between 27 and 30 percent over full year 2011 earnings of $3.20 per diluted share. Full year 2012 sales are now expected to grow in the range of 14 percent to 17 percent from 2011.

Second Quarter Performance Summary (in thousands except per share data)
	Three Months ended June 30,								Six Months ended June 30,
Product line sales		2012			2011		Change			2012			2011		Change
Off-Road Vehicles	$	581,143		$	482,304		20	%	$	1,085,710		$	870,323		25	%
Snowmobiles		8,873			6,828		30	%		13,520			15,763		-14	%
On-Road Vehicles		64,737			30,886		110	%		129,393			75,794		71	%
Parts, Garments & Accessories		100,693			87,903		15	%		200,573			183,239		9	%
Total Sales	$	755,446		$	607,921		+24	%	$	1,429,196		$	1,145,119		+25	%
Gross profit	$	216,749		$	177,604		+22	%	$	411,712		$	329,439		+25	%
Gross profit as a % of sales		28.7	%		29.2	%	-50 bpts			28.8	%		28.8	%	0 bpts
Operating expenses	$	114,530		$	106,209		+8	%	$	225,129		$	193,747		+16	%
Operating expenses as a % of sales		15.2	%		17.5	%	-230 bpts			15.8	%		16.9	%	-110 bpts
Operating Income		110,434		$	76,921		+44	%	$	201,981		$	146,504		+38	%
Operating Income as a % of sales		14.6	%		12.7	%	+190 bpts			14.1	%		12.8	%	+130 bpts
Net Income	$	69,823		$	48,729		+43	%	$	129,901		$	96,039		+35	%
Net income as a % of sales		9.2	%		8.0	%	+120 bpts			9.1	%		8.4	%	+70 bpts
Diluted Net Income per share	$	0.98		$	0.68		+44	%	$	1.83		$	1.35		+36	%

 Off-Road Vehicle (“ORV”) sales increased 20 percent from the second quarter 2011 to $581.1 million. This increase reflects continued North American market share gains for both ATVs and side-by-side vehicles. Polaris North American ORV unit retail sales were up more than 15 percent from the second quarter last year, with consumer purchases of side-by-side vehicles climbing over 20 percent and ATV retail sales up nearly ten percent. The Company estimates the North American industry ORV retail sales increased low double digits percent from the second quarter of 2011. North American ORV dealer inventories were up low double digits percent from the second quarter of 2011, in support of continued strong retail demand for side-by-side vehicles. Sales of ORVs outside of North America decreased eight percent compared to the second quarter 2011, due to weaker international economic conditions and an unfavorable currency impact resulting from the strong U.S. dollar.

 Snowmobile sales totaled $8.9 million for the 2012 second quarter compared to $6.8 million for the second quarter of 2011. The increase is partially due to a mix of higher priced products being shipped during the 2012 second quarter compared to the same period last year. Second quarter snowmobile sales are routinely low for the Company as deliveries to dealers ramp up in the second half of the calendar year before the snowmobile retail selling season begins in earnest.

2

 Sales of the On-Road Vehicles division, comprised primarily of Victory motorcycles but also including Indian motorcycles and our GEM and Goupil electric vehicles, increased 110 percent over the same period last year to $64.7 million. North American industry heavyweight cruiser and touring motorcycle retail sales increased low single digits percent during the 2012 second quarter as compared to the prior year’s second quarter. Over the same period, Victory North American consumer unit retail sales increased over ten percent, once again gaining market share. North American Victory dealer inventory increased over 2011 levels to support the retail sales increases, market share gains and new product launches of the Victory Judge™ and Victory Hard-Ball™. Polaris sales of On-Road Vehicles to customers outside of North America, now including Goupil, increased over 130 percent during the 2012 second quarter compared to same period last year. The 2011 acquisitions of Indian, GEM and Goupil contributed over a third of On-Road Vehicles’ second quarter sales growth.

 Parts, Garments, and Accessories (“PG&A”) sales increased 15 percent during the second quarter 2012 compared to the same period last year. The increase was primarily driven by higher ORV and Victory motorcycle-related PG&A sales.

 International sales totaled $111.5 million for the 2012 second quarter, a seven percent increase over the same period in 2011. Unfavorable currency fluctuations negatively impacted sales outside North America by five percent during the 2012 second quarter. The increase in the second quarter sales was driven by the additional sales from the Goupil acquisition as well as higher sales of Victory motorcycles and a 38 percent increase in Asia/Pacific region sales, offset by lower ORV sales, primarily in Europe, due to sluggish economic conditions and the weak currencies.

 Gross profit was 28.7 percent of sales for the second quarter of 2012, a decrease of 50 basis points from 2011’s all-time second quarter high gross profit percentage. The gross profit percentage declined primarily due to unfavorable currency fluctuations, which had well over 100 basis points negative impact on the gross profit percentagein the second quarter 2012 compared to the second quarter 2011, as well as negative product mix and commodity costs impacts. Gross profit dollars increased 22 percent to $216.7 million for the second quarter of 2012, compared to $177.6 million for the second quarter of 2011. The increase in gross profit dollars resulted primarily from increased volume, cost savings from the manufacturing realignment project, continued product cost reduction efforts and higher selling prices.

 Operating expenses for the second quarter 2012 increased eight percent to $114.5 million or 15.2 percent of sales as compared to $106.2 million or 17.5 percent of sales for the second quarter of 2011. Operating expenses in absolute dollars for the second quarter of 2012 increased primarily due to research and development expenses and continued infrastructure investments being made in international and adjacent markets, offset somewhat by lower incentive compensation plan expenses due to stock price changes during the second quarter of 2012 compared to the same period in 2011.

3

 Income from financial services increased 49 percent to $8.2 million during second quarter 2012 compared to $5.5 million in the second quarter of 2011, primarily a consequence of increased profitability generated from retail credit portfolios with GE, Capital One and Sheffield and higher income from the dealer inventory financing through Polaris Acceptance.

 Non-operating other expense was $0.2 million in the second quarter of 2012, compared to $1.6 million in the second quarter of 2011. The decrease in expense 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 second quarter 2012 was recorded at a rate of 35.8 percent of pretax income compared to 34.4 percent of pretax income for the second quarter 2011. The higher income tax rate for the second quarter 2012 is primarily due to the United States Congress not yet extending the research and development income tax credit as of June 30, 2012.

Financial Position and Cash Flow

 Net cash provided by operating activities increased 27 percent to $78.4 million for the year-to-date period ended June 30, 2012 compared to $61.8 million for the first half of 2011. The increase in net cash provided by operating activities for the 2012 period was due to increased net income, partially offset by a higher investment in working capital, largely due to higher factory inventory compared to the same period in 2011. Total debt at the end of the second quarter was $107.6 million. The Company’s debt-to-total capital ratio was 16 percent at June 30, 2012, compared to 18 percent at the same period in 2011. Cash and cash equivalents were $289.3 million at June 30, 2012 compared to $262.2 million for the same period in 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’ 2012 second quarter earnings results released this morning. The call will be hosted by Scott Wine, CEO, Bennett Morgan, President and COO, and Mike Malone, Vice President―Finance and CFO. A slide presentation and link to the audio webcast will be posted on the Investor Relations page of the Polaris web site at www.polarisindustries.com/irhome.

 To listen to the conference call by phone, dial 877-706-7543 in the U.S. and Canada, or 973-200-3967 internationally. The Conference ID is # 65257762.

 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 855-859-2056 in the U.S. and Canada, or 404-537-3406 internationally.

4

About Polaris

 Polaris is a recognized leader in the powersports industry with annual 2011 sales of $2.7 billion. Polaris designs, engineers, manufactures and markets innovative, high quality off-road vehicles, including all-terrain vehicles (ATVs) and the Polaris RANGER® side-by-side vehicles, snowmobiles, motorcycles and on-road electric/hybrid powered vehicles.

 Polaris is among the global sales leaders for both snowmobiles and off-road vehicles and has established a presence in the heavyweight cruiser and touring motorcycle market with the Victory and Indian motorcycle brands. Additionally, Polaris continues to invest in the global on-road small electric/hybrid powered vehicle industry with Global Electric Motorcars (GEM) and Goupil Industrie SA, and internally developed vehicles. Polaris 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 vehicles accessories are available from authorized Polaris dealers or anytime at www.polarisindustries.com.

Except for historical information contained herein, the matters set forth in this news release, including management’s expectations regarding 2012 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.

(summarized financial data follows)

5

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
	For Three Months Ended June 30,					For Six Months Ended June 30,
		2012		2011			2012			2011
Sales		$	755,446	$	607,921		$	1,429,196		$	1,145,119
Cost of sales			538,697		430,317			1,017,484			815,680
Gross profit			216,749		177,604			411,712			329,439
Operating expenses
Selling and marketing			50,555		43,453			95,688			80,666
Research and development			31,216		25,499			61,682			48,498
General and administrative			32,759		37,257			67,759			64,583
Total operating expenses			114,530		106,209			225,129			193,747
Income from financial services			8,215		5,526			15,398			10,812
Operating income			110,434		76,921			201,981			146,504
Non-operating expense (income):
Interest expense			1,466		985			2,978			1,496
Other expense (income), net			210		1,642			(2,367	)		(1,559	)
Income before income taxes			108,758		74,294			201,370			146,567
Provision for income taxes			38,935		25,565			71,469			50,528
Net Income		$	69,823	$	48,729			129,901		$	96,039
Basic net income per share		$	1.01	$	0.71		$	1.89		$	1.40
Diluted net income per share		$	0.98	$	0.68		$	1.83		$	1.35
Weighted average shares outstanding:
Basic			68,954		68,811			68,795			68,674
Diluted			71,161		71,215			70,993			70,939

6

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
Subject to Reclassification
	June 30, 2012			June 30, 2011
Assets
Current Assets:
Cash and cash equivalents		$	289,294		$	262,174
Trade receivables, net			134,876			136,903
Inventories, net			357,960			286,137
Prepaid expenses and other			46,706			28,622
Income taxes receivable			9,164			13,400
Deferred income taxes			78,765			70,060
Total current assets			916,765			797,296
Property and equipment, net			223,777			193,071
Investment in finance affiliate			41,692			35,567
Investment in other affiliates			5,000			975
Deferred tax assets			12,738			3,475
Goodwill and intangible assets, net			76,379			60,878
Total Assets		$	1,276,351		$	1,091,262
Liabilities and Shareholders’ Equity
Current Liabilities:
Current portion of capitalized lease obligations		$	2,630			-
Accounts payable			192,113		$	148,208
Accrued expenses:
Compensation			123,168			138,490
Warranties			38,685			31,862
Sales promotions and incentives			79,955			74,869
Dealer holdback			71,998			67,508
Other			82,194			70,429
Income taxes payable			1,873			2,271
Total current liabilities			592,616			533,637
Long term income taxes payable			8,437			6,184
Capital lease obligations			4,959			-
Long-term debt			100,000			100,000
Total liabilities			706,012			639,821
Shareholders’ Equity:
Total shareholders’ equity			570,339			451,441
Total Liabilities and Shareholders’ Equity		$	1,276,351		$	1,091,262

7

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Subject to Reclassification	For Six Months
	Ended June 30,
		2012			2011
Operating Activities:
Net income	$	129,901		$	96,039
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		32,677			34,995
Noncash compensation		18,338			9,673
Noncash income from financial services		(1,599	)		(2,272	)
Noncash loss from other affiliates		-			34
Deferred income taxes		(3,228	)		(7,026	)
Tax effect of share-based compensation exercises		(10,450	)		(9,894	)
Changes in current operating items:
Trade receivables		(20,014	)		(43,894	)
Inventories		(60,668	)		(38,919	)
Accounts payable		45,622			32,954
Accrued expenses		(69,436	)		1,814
Income taxes payable/receivable		27,797			(3,133	)
Prepaid expenses and others, net		(10,567	)		(8,599	)
Net cash provided by operating activities		78,373			61,772
Investing Activities:
Purchase of property and equipment		(41,591	)		(40,601	)
Investment in finance affiliate, net		2,158			3,873
Acquisition of businesses, net of cash acquired		(383	)		(27,960	)
Net cash used for investing activities		(39,816	)		(64,688	)
Financing Activities:
Borrowings under credit agreement/capital lease obligations		1,968			100,000
Repayments under credit agreement/capital lease obligations		(1,422	)		(200,000	)
Repurchase and retirement of common shares		(48,634	)		(32,856	)
Cash dividends to shareholders		(50,749	)		(30,675	)
Tax effect of proceeds from share-based compensation exercises		10,450			9,894
Proceeds from stock issuances under employee plans		14,690			23,083
Net cash used for financing activities		(73,697	)		(130,554	)
Impact of currency translation on cash balances		(902	)		1,717
Net decrease in cash and cash equivalents		(36,042	)		(131,753	)
Cash and cash equivalents at beginning of period		325,336			393,927
Cash and cash equivalents at end of period	$	289,294		$	262,174

8

EX-99.2

Exhibit 99.2

POLARIS INDUSTRIES INC. Second Quarter 2012 Earnings Results July 24, 2012

Safe Harbor Except for historical information contained herein, the matters set forth in this document, including but not limited to management’s expectations regarding 2012 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 2011 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.  Note: Shares and per share information have been adjusted to give effect to the two-for-one stock split declared on July 20, 2011, payable on September 12, 2011 to shareholders of record on September 2, 2011.  2

Scott Wine, CEO POLARIS INDUSTRIES INC. Second Quarter 2012 Earnings Results July 24, 2012

Q2 2012 Sales and Net IncomeQ2 Sales (in millions) Q2 Net Income (in millions) $69.8  +24% $755.4 +43%  $607.9  $48.7  Q2 2011 Q2 2012 Q2 2011 Q2 2012  Record 2nd Quarter Sales and Net Income  ORV Sales remained strong +20%; On-Road up 110%; PG&A up 15%  International Sales up 7%;  EMEA growth slowed, Asia Pacific / Latin American +20% Growth  Currency volatility had 5% negative impact on International Sales  Earnings per Share up 44% to record $0.98  Gross margins down 50 bps due to currencies  Net Margins up 120 bps to 9.2%  Operating income increased 44% to $110.4M  Operating expenses as a percent of sales down 230 bps  Record Second Quarter Sales, Net Income and EPS 4

Full Year 2012 Guidance Total Company Sales (in millions) Diluted EPS Up 14% to 17% Up 27% to 30% $3,025 to $3,100 $4.05 to $4.15  $2,657  $3.20  2011 Actual FY 2012 2011 Actual FY 2012 Guidance Guidance  North American Retail Sales growth, market share gains expected to continue  Model Year ‘13 Product Innovation to boost ORV & Motorcycle demand  Full Year International Sales up low double digits %  EMEA up modestly; AP/LA growth remains strong  Growth investments continue; India joint venture start up Net Income projected up 27% to 30%  Commodity pressures moderating; currency pressures expected to continue  On-going margin improvement expected from Monterrey & LEAN journey  Diluted EPS planned to be up 27% to 30% or $4.05 to $4.15  Successfully Managing Through an Uncertain Economic Environment  5

Polaris / Eicher Joint Venture  Growth Through Adjacencies Global Market Leadership Signed July 24, 2012 50/50 Joint Venture in India Eicher is a $1.3 billion manufacturer in the commercial automotive industry in India $50 million investment over the next 3 years, shared equally by each partner Vehicle production anticipated to begin in 2015  Objectives:  Design, develop, and manufacture a full range of new vehicles for India and other emerging markets Build a manufacturing facility in India to produce the vehicles Develop a distribution network to sell the vehicles  What each partner brings to the joint venture:  Proven expertise in LEAN Engineering  Proven product development capabilities India vehicle manufacturing expertise  World class quality and reliability In-depth understanding of India and emerging markets LEAN manufacturing know-how  Experienced vehicle JV partner  Proven distribution expertise  Aligns with Two Polaris Key Strategic Objectives  6

Polaris Strategic Objectives 3-5 Year Objectives Q2 2012 YTD Progress Best in Powersports PLUS  5-8% annual organic growth ORV & Victory retail sales & market share up  PG&A ramping up throughout the year Major Innovation investments continue Growth through Adjacencies  $200 - $500M growth Eicher JV signed to drive growth in India GEM & Goupil integration on track Polaris Defense building technology advantage    Global Market Leadership  >25% of Polaris revenue International sales up 13% EMEA +9% and AP/LA +28%   ORV gained market share, again Operations is Competitive Advantage  Op Ex drives > 200 bps operating margin improvement Operating margins up 130 bps  Productivity, Lead Times improving Monterrey plant ramping, output on plan  Strong Financial Performance Sustainable, profitable growth; Net income margin >9.5% Sales up 25% Net Income up 35% / EPS up 36% Net income margin to 9.1%  7

Bennett Morgan  President & COO POLARIS INDUSTRIES INC.  Second Quarter 2012   Earnings Results July 24, 2012

N.A. Retail Sales & Inventory Trends  Best in  Powersports Plus Snow  ORV  Victory  TOTAL  2008  19%  17%  2009 2010 2011 2012  Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12  Polaris Q2 N.A. retail sales up 17%, demand remains strong  N.A. ORV and Motorcycle industry growth continues in Q2  SxS industry growth estimated around 15%.  ATV industry grew mid single digits %  Motorcycle retail up low single digits %  Continue to gain market share  #1 YTD in N.A. SxS & ATV ‘s  #2 in Heavyweight Motorcycles & Snowmobiles  Remain clear #1 in N.A. Powersports YTD   Polaris N.A. dealer inventory up 17% from Q2 2011  ATV dealer inventory about flat from 2011  Side-by-side and Victory Motorcycle inventory up due to continued strong retail demand and new segments  Season-ending Snowmobile inventory up from previous season  Delivery improvement remains key focal point and opportunity  N.A. Retail Sales Remain Strong  9

Best in Powersports Plus  Off-Road Vehicles  #1 in ORV -Gained share in SxS and ATVs again  Industry retail sales remain strong in both ORV and ATV  Announcing strong MY ‘13 product next week  RANGER Crew in Las Vegas  Sportsman 500 EFI  Polaris Sales ($ in millions) N.A. ORV Retail Sales Q2 2012  +20% Up mid-double     $581.1  Up more+32% digits %   than 15% $482.3   $1,822.3   Up low double digits%   Q2 2011 Q2 2012 FY 2011 FY 2012 Polaris Industry  Guidance  #1 and Momentum Continues  10

Growth Through Adjacencies  Military Bobcat Strategic Alliance Remain #1 in Ultra-light Segment 1st Half sales up over 2011 Began first shipments of SOCOM ATV MV850 Strong interest in Military RZR, available Q3 2012 Defense up-fit capability established in Osceola Numerous technology and business development   opportunities emerging Acquired Resilient Technologies in Q2, manufacturer of high performance non-pneumatic tires   Co-development project on plan  2013 CY launch anticipated  Dealer inventories remain at reasonable levels  Q2 Bobcat retail sales up modestly on lower shipments  National Accounts down vs. 2011  Future Business Opportunities Continue to Develop  11

Best in Powersports Plus On-Road Vehicles Polaris Total On-Road Sales (in millions) Q2 2012 N.A. Motorcycle Industry 1400cc+ Victory N.A. retail sales up over 10% in Q2; #2 in heavyweight share  Industry growth slower than Q1 due to seasonal pull-forward  International unit retail sales up significantly  Dealer inventories up due to new dealers and  increased demand Indian product development progressing   +110%  Up 50% -60%  $64.7 +79%  $146.3  $30.9 MY13 Extreme Green XC (June ‘12) Up over 10% Up low-single digits %   Q2 2011 Q2 2012 FY 2011 FY 2012 Polaris Industry  Guidance  Continues to Outperform the Industry 12

Growth Through Adjacencies  GEM Goupil Strong Q2 dealer orders -highest level since Q4 2009 Added more than 60 dealers YTD 2012 2H focused on Int’l, GSA, and dealer adds   1st half revenue up over last year (proforma)   Cost down and operational efficiency improvements progressing well   Some challenges with European economic headwinds delaying purchases from government customers   G5 Hybrid launch progressing   Electric Vehicle Business On Track  13

Best in Powersports Plus PG&A Q2 2012 PG&A Revenue by Category Parts, Garments & Accessories ORV growth up 17% vs Q2 2011 On-Road up 54% vs Q2 2011 International up 19% from Q2 2011 Launching 200+ new MY ‘13 accessory products in Vegas later this month 51% 47% 2% Parts Accessories Apparel Q2 2012 PG&A Sales by Product Line Polaris Sales ($ in millions) Up low-double digits % +15% +19% $100.7 $408.2 $87.9 On-Road 80% 10% 4% ORV 6% Q2 2011 Q2 2012 FY 2011 FY 2012 Snow Other Guidance Parts, Garments & Accessories  14

Global Market Leadership Polaris Sales (in millions) Q2 2012 Growth by Region Global Market Snow 2%Up low-double digits +7% $111.5 +39% Increased ORV market share – remain clear leader in Europe Sales up 7%; Currency was negative 5% in Q2 On-Road / Victory sales up over 130% ORV down 8% due to weaker Europe / currency EMEA up YTD, but growth slowing due to broader economy Asia Pacific strong; Australia & China driving growth Latin American sales down in Mexico and Argentina Q2 2012 International Sales by Product $104.2 $424.3 Q2 2011 Q2 2012 FY 2011 FY 2012 Guidance ORV 66% On-Road 16% PG&A 16% Growth Slowing Due to European Headwinds 15

Operational Excellence Gross Margins Net Income as a Percent of Sales Q2 2012 Margins Up 60 to 80 bps 29.2% -50 bps 2.3% 0.2% -0.8% 28.5% to 28.7% 28.7% 27.9% Q2 2011 Q2 2012 FY 2011 FY 2012 Q2 Gross Operating Financial Income Taxes Q2 Guidance 2011 Margin Expense Services / Non-2012 Operating Gross margins declined 50 bps Manufacturing realignment savings & higher volume offset by commodity costs and well over 100 bps negative foreign currency impact Net income margin increased 120 bps to 9.2% for Q2 2012 Commodity pressures moderating; should be a benefit in 2nd half Productivity continued to improve Monterrey production and quality on plan & profitable; 2012 full year savings remains within guidance range Factory inventory up in Q2 due to higher demand, acquisitions, and MY ‘13 products to be introduced next week Second Quarter Net Income Margin Expansion at Record Levels  16

Mike Malone V.P. Finance & CFO Second Quarter 2012 Earnings Results July 24, 2012 POLARIS INDUSTRIES INC.

2012 Full Year Guidance METRIC GUIDANCE Product Line Sales Off-Road Vehicles Up mid-double digits % On-Road Vehicles Up 50% to 60% Snowmobiles Down mid-single digits % PG&A Up low-double digits % International Up low-double digits % Total Company Sales Up 14% to 17% Gross Margins Expand 60 to 80 bps Operating Expenses Down as a percent of sales Income Taxes 34.0% to 34.5% of pretax income Net Income Up 27% to 30% Change in Guidance Increased EPS, Diluted $4.05 -$4.15 (+27% to 30%) Decreased Share Count Approximately flat to 2011 Unchanged/ Narrowed Continued Strong Financial Performance  18

2012 Full Year Gross Margin Guidance METRIC Actual Q2 2011 Actual Q2 2012 Full Year Guidance 2012 Prior Period 26.2% 29.2% 27.9% Production volume adjustments Product cost reduction efforts Commodity costs Currency rates Higher selling prices Product mix Manufacturing realignment, net Warranty costs Tooling amortization Sales promotional costs Current period 29.2% 28.7% 28.5% to 28.7% Change +300 bps -50 bps Up 60 to 80 bps Improvement to gross profit margin % Impairment to gross profit margin % Neutral to gross profit margin %  19

Manufacturing Realignment Monterrey Facility Operations as a Competitive Advantage Vehicle Assembly Engine Assembly Employee Headcount (Units) (Units) $30+ $12 -$15 850 1 st Half 22,500 20,0001st Half 1st Half FY 12 Anticipated FY 2011 FY 2012 FY 2013 FY 2011 FY 2012 FY 2013 FY 2011 FY 2012 FY 2013 Anticipated Annualized Actual Estimate Estimate Actual Estimate Estimate Actual Estimate Estimate Savings Savings Upon Guidance Completion Costs and savings projections remain within guidance range Savings accelerating through 2012 Additional shift added to meet SxS demand Quality meeting expectations Monterrey Performing at a High Level Monterrey Performing at a High Level 20

Balance Sheet and Liquidity Profile $ In millions (except per share and interest rate data) YTD 2012 Fav/(UnFav) 2011 2012 Full Year Guidance Cash $289.3 $27.1 Increase from 2011 Debt $107.6 ($7.6) Unchanged Credit Facility $350.0 ($100.0) Renewed to 2016 Factory Inventory $358.0 ($71.8) Decrease from 2011 by year-end Capital Expenditures $41.6 ($1.0) Increase from 2011 at similar % as sales Depreciation & Amortization $32.7 ($2.3) Similar to 2011 Operating cash flow $78.4 $16.6 Increase double digit % over 2011 Dividend $0.74 per share $0.29 per share Increase +64% over 2011 Polaris Acceptance Receivables $579.1 ($124.3) Increase due to volume & product mix Retail Credit – Approval Rate YTD – Penetration Rate YTD 58% 34% -1% Flat Stable Financial Position Remains Healthy 21

Scott Wine, CEO  POLARIS INDUSTRIES INC. Second Quarter 2012 Earnings Results July 24, 2012

Priorities for 2nd Half 2012 Stay on Offense Accelerate progress from Dealer Show Win competitive battle with innovation & execution; MY ‘13 launch Actively manage risk Be diligent & prepared for adversity Leverage speed & agility to deal with volatile economic environment Accelerate Operational Excellence Launch MVP+ for motorcycles Monterrey plant production & savings increasing on plan Build on 1st Half momentum Continue to aggressively execute strategic initiatives Invest wisely to build capacity & capability Expect Another Record Performance in 2012 23

Thank you Q &A 24