EX-99.1 2 a51387248ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
 
 ANALYST & INVESTOR MEETINGOpening Remarks / Polaris Overview  July 26, 2016  POLARIS INDUSTRIES INC.  

 Polaris Analyst & Investor Meeting Agenda  8:00 am    Opening Remarks / Polaris Overview  Scott Wine  8:15 am    Customer Excellence  Tim Larson  8:35 am    Motorcycles  Steve Menneto  9:05 am    Global Adjacent Markets  Bob Mack  9:25 am    Parts, Garments & Accessories  Steve Eastman  9:45 am    International  Mike Dougherty  10:05 am    Break    10:20 am    Snowmobiles  Chris Wolf  10:35 am    Off-Road Vehicles   Matt Homan  11:05 am    Global Operations, Engineering & Lean  Ken Pucel  11:25 am    Closing Comments  Scott Wine  11:30 am     Q&A  Scott WineMike Speetzen  12:00 pm    Adjourn    Tuesday, July 26, 2015 8:00 AM – 12:00 PM CDTGaylord OprylandNashville, TNWebcast Link at:ir.polaris.com  July 2016 Analyst  2 
 

 
 Except for historical information contained herein, the matters set forth in this document, including but not limited to management’s expectations regarding 2016 sales, shipments, margins, currencies, net income and cash flow, the opportunities for expansion and diversification of the Company’s business and the Company’s guidance on earnings per share 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 operation expansion initiatives; acquisition integration costs; warranty expenses; 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; performance of affiliate partners; 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 2015 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.Non-GAAP Measure - Constant Currency Reporting. This presentation includes information regarding the Company’s 2016 expectations on a constant currency basis, which is a non-GAAP measure, as well as on a GAAP basis. For purpose of comparison, the results on a constant currency basis uses the respective prior year exchange rates for the comparative period to enhance the visibility of the underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations.    3  July 2016 Analyst  SAFE HARBOR 

 
 Scott W. Wine Chairman & CEO  Opening Remarks  July 26, 2015     POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING  July 2016 Analyst  4 

 
   Knowledgeable, Experienced Team at Polaris  5  July 2016 Analyst  Executive Team  Ken PucelEVP – Global Ops, Engineering & Lean (2 years)  Mike SpeetzenEVP – Finance & CFO(1 year)   Stacy BogartSVP – General Counsel(7 years)  Tim LarsonSVP – Global Customer Excellence(3 years)  Dave LongrenSVP – Enterprise Cost(13 years)  Bob MackSVP – Corp Dev & Strategy & President – GAM(3 months)  Jim WilliamsSVP & CHRO(5 years)  Mike DoughertyPresident – International(18 years)  Steve EastmanPresident – PG&A(4 years)  Matt HomanPresident – ORV(14 years)  Steve MennetoPresident – Motorcycles(19 years)  Craig ScanlonVP – CMO & CRO ORV(12 years)  Chris WolfVP – Snowmobiles(14 years)    Scott WineChairman & CEO(8 years) 

 
 2016 1st Half Financial Metrics  1st Half Sales and Earnings Disappointing; 2nd Half Performance/Results Improving    1st Half 2016    1st Half 2015     Variance  Revenue  $2,113.8    $2,157.7    -2%  Gross Profit %  25.2%    28.4%    -325 bps  Operating Profit %  9.2%    14.6%    -538 bps  Net Income  $118.1    $189.5    -38%  Net Income %  5.6%    8.8%    -320 bps  EPS  $1.80    $2.79    -35%  YTD Operating Cash Flow  $348.3    $89.9    +287%          ($ in millions except per share amounts)        July 2016 Analyst  6 

 
                 Strategic Objectives   Vision & Strategy  VISION  Fuel the passion of riders, workers and outdoor enthusiasts around the world by delivering innovative, high quality vehicles, products, services and experiences that enrich their lives.  STRATEGY  Polaris will be a highly profitable, customer centric, $8B global enterprise by 2020. We will make the best off-road and on-road vehicles and products for recreation, transportation and work supporting consumer, commercial and military applications. Our winning advantage is our innovative culture, operational speed and flexibility, and passion to make quality productsthat deliver value to our customers.  Best in Powersports PLUS   Growth through Adjacencies  5-8% annual organic growth   >$2B from acquisitions & new markets   Global Market Leadership  LEAN Enterprise is Competitive Advantage   >33% of Polaris revenue  Significant Quality, Delivery & Cost Improvement  Strong Financial Performance  Sustainable, profitable growthNet Income Margin >10%   Guiding Principles  Best People, Best Team   Safety & Ethics Always   Customer Loyalty  Performance Priorities  Growth  Margin Expansion  Product & Quality Leadership  LEAN Enterprise  >$8 Billion by 2020  12% CAGR  >10% of Sales by 2020   13% CAGR  7  July 2016 Analyst  Strategy and Objectives Remain Valid & Achievable 

 
 Time to Get Back to Winning…. The Right Way – Everyday, Always  8  Guiding Principles & Priorities  July 2016 Analyst    Best People, Best Team Safety & Ethics AlwaysCustomer Loyalty  Performance Priorities  GrowthMargin ExpansionProduct and Quality Leadership LEAN Enterprise    Guiding Principles 

 
 9  Near-term Priorities  July 2016 Analyst          Meet / Beat Commitments     Invest Wisely     Get Great At Inventory    Accelerate LEAN Transformation     Improve Execution & Quality   Attack Costs–Boldly   – Regain Consistency / Confidence  – New Products, New Businesses, New Partners  – Improve Cash Flow / Dealer Loyalty / Profitability  – Build A Competitive Advantage  – Dramatically Improve Performance  – Align With Current Outlook  7  6  5  4  3  2  Win the Competitive Battle –Grow  – Remain on Offense – Innovation / Customer Excellence  1 

 
 Scott W. Wine Chairman & CEO  Thank You    

 
 POLARIS INDUSTRIES INC. / ANALYST & INVESTOR MEETING  July 26, 2016  TIM LARSON  SVP – Global Customer ExcellencePolaris Sales, Service & Interactive  

 
 Customer Excellence  2  Ensure the best powersports & on-road products in the world, are surrounded by the best consumer and dealer experience in the world, delivering: Loyal lifetime relationships, earning repeat purchase The industry’s leading NPS: product & experiencePolaris >$8 Billion by 2020  July 2016 Analyst 

 Polaris Customer Journey  3   Delivering a Differentiated End to End Experience   July 2016 Analyst        SEAMLESS: DIGITAL TO DEALERSHIP    SEAMLESS DELIVERY EXPERIENCE    RIDE COMMAND  ENGAGE DIGITALLY    DEALERSHIP EXPERIENCE  WORLD CLASS SERVICE 

 Engaging Consumers Digitally: 1H 2016  Delivering Dealers Informed & Engaged Consumers  4  Improved Product Shopping   Fully Responsive, New B&Q  1.6X Sales E-Commerce  6.2 Million Fans Socially  59% Traffic  Mobile   Direct Activation & Engagement  July 2016 Analyst 

 Polaris & Indian Motorcycle Ride Command   5  July 2016 Analyst  Manage your Fleet, Manage your Ride – Be in Command with RideCommand™  Largest screen on two wheelsFastest interfaceMost customizable  Fleet ManagementGeofencingAuthentication 

 Dealership Capabilities & Consumer Ownership Experience  Investing In Our Dealers & Elevating Our Customer’s Experience   6  Expanding Service & Staff TrainingDealer Management System IntegrationField Support Investments  Dealership Capabilities  Polaris Consumer Delivery Experience: PCDXRide Command Integrated APP  July 2016 Analyst  Consumer Ownership 

 Dealer Transformation  Polaris & Dealers Investing & Expanding for Profitable Growth  7  1st Half: New Dealer Activations on Target  ORVIndian MotorcycleSlingshot  Existing Dealer Expansions on Target  ¾ of our total Polaris NA revenueTop 3 actions: showroom, storage, service  Dealer Profitability  Inventory Reduction RFM & SMART Retail Velocity & Simplified IncentivesDealer Data Sharing   July 2016 Analyst 

 Strong Dealership Count Positions  8  Polaris Leadership Position in Key Markets  SxS + ATV  Snowmobiles  Victory + Indian  ~1530  ~ 750  ~ 530  Slingshot  ~ 450  Long Range Plan      2015 Year End Actual  ORV: further expand in opportunity markets  sustain leadership position  Motorcycles: fully penetrate top markets  further expand distribution  July 2016 Analyst 

 N.A. Powersports Consolidated Share  9  Clear #1 N.A. Powersports  Honda  Harley  Yamaha  Kawasaki  Can Am    Other  July 2016 Analyst 
 

 
 Polaris Growth: Brand Franchise Value Per Dealer  Polaris Delivering High Dealer Brand Value Per Dealer   10  Growing Brand Value  Maintaining or Eroding Brand Value  July 2016 Analyst  OEM N.A. Retail Sales Units Per Dealership (2015 vs. 2010) 

 Summary  11  Ensure the best powersports and on-road products in the world are surrounded by the best consumer and dealer experience in the world:Deliver industry-leading product innovation: MY 17 lineup, PG&A, Ride CommandExecuting complementary channels to: engage consumers, deliver leads to dealersImproving dealer profitability through: Retail velocity, RFM, SMART & inventory management Transforming distribution/dealership capabilities: lead mgmt., merchandising, service    July 2016 Analyst 

 POLARIS INDUSTRIES INC. / ANALYST & INVESTOR MEETING  Q&A  Tim Larson  SVP – Global Customer ExcellencePolaris Sales, Service & Interactive  
 

 
 POLARIS INDUSTRIES INC. / Analyst Meeting  July 26, 2016  Steve Menneto  President – Motorcycles 

 
 Motorcycles Driving Growth & Profitability  2  Slingshot integration into Motorcycles:Plenty of Opportunities to Drive Growth & Awareness Leverage Bigger Motorcycle Team to Drive Growth for all Three BrandsLeverage Lean Tools and Standard Work to Improve Margins  Motorcycles   +  July 2016 Analyst 

 2016 Industry Off to a Choppy Start   2016 N.A. 900+cc Industry    Industry Retail Trends  2016 Industry Retail YTD  Q2 YTD 2016 Trends:2016 N.A. 900+ cc Industry down mid-single digits YTD Mid Size Industry up mid-single digits – New Product Introductions / promo driving segmentCruiser Industry up mid-single digits – New Product introductions/ promo driving segmentBagger & Touring down high-single digits – Increased Promotions to Get Customer to Trade3-wheeled down high-single digits – Slingshot gaining share  3  July 2016 Analyst 

 Polaris Motorcycles Largest Share Gains  2016 N.A. 900+cc Competitive Summary  Rank  Manufacturer    Strategy   Share Trend  1  Harley   Aggressive Financing, Conversion Promotions Focusing on Cruiser, Sportster, Street Products Huge Installed Owner Base     2  Indian   American Heritage High Owner Satisfaction     3  Victory   American Muscle & Performance High Owner Satisfaction     4  Metrics   Aggressive Promotions, Low Investment in New Product Breadth of Distribution Bases    5  Triumph   Historical Brand, New Products              4  July 2016 Analyst 

 5  New Product News (1st Half 2016)  Launched 40 New Accessories  Chieftain  Springfield Launched March ‘16  Chieftain Dark Horse launched May ’16  Jack Daniels/Indian 150 bikes sold out in 8 hours  Octane Launched Feb ‘16  Slingshot SL Blue Fire Launched March ‘16  July 2016 Analyst 

 
   VIDEO:VICTORY BRANDtrt 1:00  6  July 2016 Analyst 

 Flexing Victory Muscle  Victory MY17 Product    X-1 Image  July 2016 Analyst  7 

 
 Strong Finish!  2H Victory Activation    1.8 Turns- $5,250 GM/unit  IAVA – MILITARY   Veterans Day Honoring Heroes  1.8 Turns- $5,250 GM/unit  REDLINE  Industry Leading Programs “On Brand”  MY17  Sturgis Showcase of Product & Partners  Replace Slow Turnerswith Fast  200MM+Media Impressions  New Riders Experience Brand  OCTANE CUSTOM ACTIVATIONS  July 2016 Analyst  8 

   VIDEO:INDIAN BRANDtrt 1:38  9  July 2016 Analyst 
 

 
   Indian MY17 Product  10  Best System on Two Wheels  Largest Screen, Fastest Interface, Most Customizable  Indian Motorcycle RIDE COMMAND™  July 2016 Analyst 

 Changing the Game in Infotainment  Indian MY17 Product  11  July 2016 Analyst  Highest resolution and brightest, largest screen (7”) Quickest start-up, 2 finger touch with pinch to zoom3 customizable screens with 8 different Information Display options Up to 200 watt premium audio system  Non-Infotainment  Infotainment  Infotainment with Navigation  N.A. Bagger/Touring Retail   Infotainment has taken over the Tour and Bagger market in N.A.Growth opportunity for Chieftain & Roadmaster   RIDE COMMAND™ 

 
 Win a Championship in 2017  Indian Flat Track  12  AMA Growing ViewershipLive up to our past Reveal at SturgisRace at Springfield  Broader Scout Appeal via Hooligan Racing  July 2016 Analyst 

 Drive Brand Stories!  2H Activation  13  BRAND  EXPERIENCE  PRODUCT  OUTREACH  Brand that inspires riders to Be Legendary  Product that beats HD where it matters  Surpass HD Owner and Dealer Experience  Partnerships that Disrupt Core HD Rider  July 2016 Analyst 
 
 
BRANDtrt 1:38  14  Have to update video  July 2016 Analyst 

 
 A GOOD THING JUST GOT BETTER  Slingshot MY17 Product   15  Enhancing the Cockpit Experience:NEW Premium Cut & Sew PPD seatsNEW High quality Rockford Fosgate speakers NEW Radio antenna  Better receptionSignificant BOM & Weight Reduction-40 lbs vs MY16  NEW Accessory Opportunity  Delivering the #1 Most Requested Product Feature: SLINGSHADEMSRP: Starting at $2,999 – LAUNCHES: Fall 2016  Orange Madness  Turbo Silver  NEW RACE INSPIRED SLRs:   July 2016 Analyst 

 Building the Brand & Expanding Reach  2H Slingshot Activation    1.8 Turns- $5,250 GM/unit  Showcase Celebrity Builds  More Earned Media  1.8 Turns- $5,250 GM/unit  REDLINE  Industry Leading Programs “On Brand”  MY17  Sturgis Showcase of Product & Partners  Replace Slow Turnerswith Fast  More Paid Media  +82% YOY Media to Drive Awareness   CAIN VELASQUEZ  KID ROCK (SEMA)    July 2016 Analyst  16 

 Apparel  Product Development  Grow PG&A  Customer Engagement  Largest Opportunity for Dealers & Polaris Motorcycles  17  Comfort & style optionsPerformance & technologyCo-brand partnershipsSlingshot vehicle weight reduction   New “Slingshade” – October 2016 SOP  Leverage Growing Installed baseDrive catalog strategyDirect mail new customersDrive digital downloadsSeasonal consumer promotionsCompelling spend / get promosInspiring seasonal content & product news Drive Growth through Power Items   New CategoriesMade in America Line  July 2016 Analyst 

 Great CX Delivers Excellent Word of Mouth  Customer Experience  18      Driving From Shop To Buy1:1 Marketing is Reaching Target Consumers and Delivering SalesImplemented Website Enhancements to Capitalize on Changing Shopping BehaviorNEW Ratings & Reviews (live)NEW Inventory Search (coming after Dealer Show)NEW Trade in Valuator (coming in September)NEW Test online chat serviceNEW Dealer lead conversion trackerCreating a More Personalized Owner ExperienceExpanding Rider Groups to Build Community and Advocacy  Direct Mail & Email  Website Ratings & Reviews  Website Inventory Search    July 2016 Analyst 

 
 Dealer Count  N.A. Current  Int’lCurrent    ~190+ retail/~230 signed  ~170    ~430  ~100    ~475  ~100  Growing our Motorcycle Dealer Network  Developing The Right Distribution For Profitable Growth & The Desired Customer Experience  19  July 2016 Analyst 

 Huntsville  Motorcycle Operations   Significantly expanded capacityGreater in-house capabilitiesBetter processes, Cost Down through Lean  20  Spirt Lake/Spearfish  RFM Stable & Reliable  Stable, Consistent QualityDramatic improvement in paint capabilities/capacityBetter processes, Cost Down through Lean  July 2016 Analyst 

 
 Motorcycle Profitability  21  Relentless Attack on Profitability  Aggressive Product PlanRobust PGA BusinessLeverage Growing ScaleIntegrate Suppliers in Margin ExpansionLean Tools & Standard Work  July 2016 Analyst 

 POLARIS INDUSTRIES INC. / ANALYST & INVESTOR MEETING  Q&A  Steve Menneto  President – Motorcycles  
 

 
 GLOBAL ADJACENT MARKETS  Bob MackSVP – Corporate Development and Strategy &President – Global Adjacent MarketsJuly 26, 2016  POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING 

                 Strategic Objectives   Vision & Strategy  VISION  Fuel the passion of riders, workers and outdoor enthusiasts around the world by delivering innovative, high quality vehicles, products, services and experiences that enrich their lives.  STRATEGY  Polaris will be a highly profitable, customer centric, $8B global enterprise by 2020. We will make the best off-road and on-road vehicles and products for recreation, transportation and work supporting consumer, commercial and military applications. Our winning advantage is our innovative culture, operational speed and flexibility, and passion to make quality productsthat deliver value to our customers.  Best in Powersports PLUS   Growth through Adjacencies  5-8% annual organic growth   >$2B from acquisitions & new markets   Global Market Leadership  LEAN Enterprise is Competitive Advantage   >33% of Polaris revenue  Significant Quality, Delivery & Cost Improvement  Strong Financial Performance  Sustainable, profitable growthNet Income Margin >10%   Guiding Principles  Best People, Best Team   Safety & Ethics Always   Customer Loyalty  Performance Priorities  Growth  Margin Expansion  Product & Quality Leadership  LEAN Enterprise  >$8 Billion by 2020  12% CAGR  >10% of Sales by 2020   13% CAGR  Analyst Jul-2016  2     
 

 Global Adjacent Markets  3  Analyst Jul-2016  Build Existing Portfolio AND Identify Future Adjacent Market Opportunities  Work & Transportation  Polaris Defense  Corporate Development  People mobility, work utility, and industrial solutions to customers incremental for Polaris.  Provide ultra-light tactical vehicles targeted at defense forces around the world.  Use acquisition strategies to help drive Adjacent Markets to $2B goal.  FOCUS Areas:Existing businessesAdjacent customersAdjacent channelsAdjacent products 

 Work & Transportation (W&T) Market Overview  4  Analyst Jul-2016  Growth Market – 5 Key Segments – Polaris Now Plays in 4  Market Size ~$4 Billion Fragmented  Global View80% market in NA Europe & China grow faster than NA Brazil & India emerging  Growth Drivers Demand for clean low cost vehicles: Rising fuel prices Gov’t regulations Environment Urbanization  Key Success Factors High quality, innovative, low cost productsAfter sales service Distribution networkGlobal scale & brand  Industrial  Light Duty Haulers  People Movers  Golf / Turf  EQC 

 Work & Transportation Competitive Landscape  5  Analyst Jul-2016  Fragmented Industry PLUS Traditional Powersports Competition  Attractive dealer and distributor network; focused on commercial marketsPrimary business/product focus = price sensitive fleet golf buyerIncreased focus on non golf utility segmentsTextron consolidating with Cushman, TUG, Bad Boy, Douglas and Premier European LDH vehicles; Piaggio strong presence in IndiaLeverage automotive brand & distribution – limited product innovationLigier – aggressive with enclosed quadricycles (ECQ), #2 playerLeading niche players with strong presence in targeted verticalsNominal product innovation historicallyHighly fragmented distribution network presenceTraditional powersports players compete for rental, heavy duty ag, construction, landscapingKubota and Kawasaki most aggressive  

 
 Work and Transportation Strategy   6  Analyst Jul-2016  Pull Together Brands/Products to Bring Comprehensive Solution to Customers  Create and acquire strong brands that offer products that meet all of our customer’s work and transportation needsDevelop an effective channel to sell and service the needs of commercial customersEstablish Polaris and our brands as the leader in product and technology solutions for workOptimize our global operations to maximize profitability and customer service across our varied businesses 

 
 Work and Transportation New Acquisition – Taylor-Dunn    Top Participants  Overview  Product Overview   What We Liked    Taylor-Dunn (“TD”) designs and manufactures industrial and commercial burden carriers, personnel carriers, stockchasers, electric carts, tow tractors and other commercial vehiclesFounded: 1949HQ & Manufacturing: Anaheim, CAEmployees: 160 FTE  Market/ competition: TD participates in approx. $200M global Market. Key competitors are EZ-GO/Cushman/TUG (Textron), Club Car, Motrec and Columbia ParCarDistribution: Taylor Dunn distributes most of its products through traditional industrial forklift dealers, direct sales to some large customersCustomers: Logistics, auto, energy, warehouses, manufacturing  TD has strong, loyal dealer and customer network serving large industrial customers including a strong service network that can be leveraged for Polaris Work and Transportation productsComplimentary product line up allows Polaris/TD to offer customers full suite of vehicle solutionsProfitable Make-to-order business model where we can realize meaningful sales/distribution, product and cost down synergies    Analyst Jul-2016  7 

 Work and Transportation Go-To-Market Plan  8  Analyst Jul-2016  One Face of Polaris Commercial to Simplify & Enhance Customer Experience   Commercial Customer            Colleges & UniversitiesMunicipalities/GovernmentFacility ManagementHotels & ResortsIndustrialRental & Construction  Marketing  Sales   Service         Product Portfolio      Easy to navigate utility and people mover product portfolio designed for key applications    Commercial Transport  Work/Industrial Utility 

 
 Work and Transportation Integration Examples  9  Analyst Jul-2016          Products  Channels  E-Worker  G3    G-Worker   

 
 Work and Transportation – Growth Drivers  10  Analyst Jul-2016  Positioned for Above Market Growth  Autonomous Capability  Advanced Battery and Charging Technologies  Fleet Management and Ownership Models  Growth Drivers  Polaris Strategy  Safety, consistency and speedLabor savingsIncreased access for those unable to operate a vehicle   Increased power and rangeImproved reliability / lower maintenanceReduced size and weight  Vehicle tracking and geo-fencingFleet managementSharing, subscription and rental modelsFirst and Last Mile vehicles  Making our vehicles “autonomous ready” Partnerships with various start-ups and customersInternal development  Li-ion available in GEM and Goupil products todayPartnering on development of a variety of new battery packs and charging options  Leveraging overall Polaris Connected Rider capabilities for W&T productsPartnering on development / business models with various partners 

 
 Polaris Defense  Established a new high priority military segment demanding ultra-light, off road ground mobility Responding to urgent need for rapid response, deep insurgency and expeditionary military missions Providing superior performance, affordability & sustainment Leveraging worlds largest off-road vehicle capability, platforms, span and technical experienceLeverage customer funding for improved mission solutions Silent drive, autonomous, connected soldier & route planning  Analyst Jul-2016  11  Innovation & Application Engineering Drives Profitable Growth  Soldiers and MRZR’s on C17 Exercise Anakonda, Poland, 2016 

 Speed and Mobility is an Overwhelming Tactical Advantage  Air transportable, extreme terrain mobile, highly durable, affordable & sustainableDAGOR – up to 9 man, full mission gear, heavy weaponsMRZR - up to 5 man, full mission gear, light weaponsMATV – single soldier, mission gear  Enhanced Tactical Mobility Will Continue To Drive Demand   Analyst Jul-2016  12  MRZR and DAGOR in Operation  “These vehicles significantly enhance what would otherwise be foot mobility. They change the dynamic and turn what would have been a 3 mile-per-hour operation into a 50 mile-per-hour operation.” Brigadier General Brian Winski, Deputy Commander of the 82nd Airborne Division  Expanding the size and scope of our programs 

 
 13  Global Adjacent Markets Results Solid in 2016  Analyst Jul-2016  Global Adjacent Markets Outlook    2016 Objective  2016 Expectations  2016 Comments  Revenue (incl. PG&A)  Up Mid Teens %  Solid Growth Expected Taylor-Dunn adds Incremental Sales  Gross Profit(% of sales)  ~Flat with 2015  Gross Margin OpportunitySales leverage, mix, expense management 

 POLARIS INDUSTRIES INC. / ANALYST & INVESTOR MEETING  Q&A  Bob Mack  Global Adjacent Markets 
 

 
 POLARIS INDUSTRIES INC. / Analyst Meeting  July 26, 2016  Steve Eastman  President – PG&A 

 FIRST HALF 2016  STRONG EXECUTION DESPITE REVENUE HEADWINDS  Analyst 7-26-16  2            Accessory REVENUE-per-unit continues to grow  New snow apparel line – strong dealer engagement  Online driving omni-channel growth   Distribution investments & lean driving productivity   SMART transformation deployed to all dealers  YOY Revenue Growth  Up 4% YTD 

 FIRST HALF 2016 – SALES MIX  3  Analyst 7-26-16  PARTS MIX GROWING. DRIVING ACCESSORY REVENUE-PER-UNIT  Product Type Mix  Product Segment Mix  Geographic Mix  Accessories  Parts  U.S.  Parts up mid-teens %Accessories down mid-single digits %Apparel up low-single digits %   Growth in every segment  U.S. up mid-single digits %Canada down twenty %International up mid-single digits %  Adjacent Markets  Motorcycle & Slingshot  International 

 
 CORE STRATEGIC AREAS OF FOCUS  4  Analyst 7-26-16  CLEAR AND CONSISTENT STRATEGIC PRIORITIES      1  DRIVEPRODUCT INNOVATION      2  ACCELERATECONSUMER DEMAND      3  TRANSFORMRETAIL EXPERIENCE      4  DELIVERSUPPLY CHAIN EXCELLENCE      5  OPTIMIZELEAN ENTERPRISE  

 
 DRIVE PRODUCT INNOVATION  5  Analyst 7-26-16  PRODUCT INNOVATION / INTEGRATION COMPETITIVE ADVANTAGE  Power Items  Bundles  New Product  Top Selling Accessories~50% of Accessory RevenueEnd-to-End Execution Focus   Tailored for Rider Applications4X Higher Acc’y Revenue-Per-Unit1H Bundle Revenue 2X vs. LY   435 New MY’17 Accessories“Polaris Engineered” AdvantageSignificant News in Every Category   TRAIL  DUNES 

 ACCELERATE DEMAND & RETAIL EXPERIENCE   6  Analyst 7-26-16  HIGH IMPACT INITIATIVES TO DRIVE RETAIL DEMAND AND CONVERSION  Dealer Retail Execution  Digital Tools   Database Marketing  Retail Execution Field SupportMerchandising SolutionsDealer Training Tools  New ConfiguratorBuying Guides / Product Content>7 Million Annual Visits   ~1.3M Installed Consumers (MY’11-’16)Direct Mail – New Owner PG&A CatalogSeasonal Promotions  Conversion up 7bps  Visits up 39%  Revenue up 72% 

 OPTIMIZE LEAN ENTERPRISE  7  Analyst 7-26-16  ACCELERATED DEVELOPMENT CYCLES, EXECUTION EXCELLENCE, DATA LEVERAGE   Product Lifecycle  Sales, Inventory, Operations Planning  Business Intelligence  LEAN Lifecycle Management ToolSingle Source of TruthTracking & Exception Reporting   Alignment of Sales & Inventory PlansImproved Demand Forecast ControlNew Product Launch Readiness   Dealer Inventory and Retail DataIntegrated into Critical ProcessesData Science & Analytics Support   2013  2014  2015  2016  2017  2018  2019    DEALERS SHARING DATA  

         LEAN APPROCH TO PG&A SALES & RETAIL. LAUNCHED APRIL 2016    Benefits    SMART  Integrated seasonal consumer promotions (pull)Retail merchandising tools & training (conversion)Retail & inventory data integrated with order formShort / frequent demand planning cyclesOrders ship within 21 days  Aligns with seasonality / promotional cadenceRight product – data-driven sales / ordering toolsRight time – shorter stocking cyclesImproved DC productivity / logisticsImproved dealer and PII inventory turns    SMART (Stocking, Merchandising, and Retail Transformation)    OldModel             Q3   Q4   Q1   Q2                2016      2017Q1      SMART    Order  Ship / Retail    Order  Ship / Retail    Order  Ship / Retail    Order  Ship / Retail    Order  Ship / Retail            Order  Ship / Retail  Order  Ship / Retail  Order  Ship / Retail  Order  Ship / Retail  Order  Ship / Retail    Order  Ship / Retail      8  Analyst 7-26-16 

 DELIVER SUPPLY CHAIN EXCELLENCE  9  Analyst 7-26-16  IMPROVED SERVICE TO OUR DEALERS. CONTINUOUS SQDC IMPROVEMENT        1      2      3      4  SAFETY & PRODUCTIVITY  PERFECT ORDER EXECUTION  SUPPLIER MANAGEMENT  INVENTORY OPTIMIZATION  2015  2016  PERFECT ORDER RATE*   *AGGREGATE ORDER PERFORMANCE METRIC: Fill Rate, On-time Ship, On-time Delivery, Accuracy, Damage Rate 

 AFTERMARKET – FOUR KEY AREAS OF FOCUS  10  Analyst 7-26-16  EXTEND OUR COMPETITIVE ADVANTAGE                     1      2      3      4  AMPLIFY BRAND POSITION PRODUCT & MARKETING   STRENGTHEN E-COMMERCE   DRIVE DEALER-DIRECT MODEL & CHANNEL DEVELOPMENT  REDUCE SYSTEM-WIDE COSTSLEVERAGE PORTFOLIO  

 
 LEVERAGING AFTERMARKET  DRIVING VALUE ACROSS THE BROADER PG&A PORTFOLIO  Premier O.E.M. – Plastics Design / Manufacturing  Klim – Apparel Center-of-Excellence  Analyst 7-26-16  11  APPAREL CENTER-OF-EXCELLENCERigby, Idaho  

 LEVERAGING AFTERMARKET  12  Analyst 7-26-16  DRIVING VALUE ACROSS THE BROADER PG&A PORTFOLIO  Strong aftermarket brandAlternative to OEM accessoriesIncremental consumer appealVolume / cost leverageIncreased revenue-per-unit   SEATS  DOORS  WHEELS & TIRES  LIGHTING 

 POLARIS INDUSTRIES INC. / ANALYST & INVESTOR MEETING  Q&A  Steve Eastman  President – Parts, Garments & Accessories 
 

 
   MIKE DOUGHERTYPresident – International  ANALYST PRESENTATION JULY 26, 2016  POLARIS INDUSTRIES INC.  

 2016 International Revenue Growth YTD   Latin America Fastest Growing Region      LATIN AMERICA    $39M+34%                                                                                                                                                                                                                                                                                                                                                                                                                              EMEA    $238M+6%      ASIA PACIFIC    $56M-11%      INTERNATIONAL    $333M+5%  July 2016 Analyst  2 
 

         Beat Financial Plan. Build business foundation for future.     2016 Overview  EMEA Growing and on plan. ATVs & Slingshot under pressure. Opole utilization improving. EU Motorcycle market growing and Polaris gaining share. ORVs are stable. No significant impact by Brexit yet other than GBR FX. Russia rebounding. Latin America Polaris growth momentum continues led by Mexico ORV and Brazil MC. Brazil Macro economy showing signs or recovery. Asia Pac Australia has rebounded. Markets are stable. NZ struggling. China growing. Indian MC driving growth in India. Multix launched but retail still slower than plan. Product MY17 ORV: Strengthening Premium Position: RZR Turbo, RGR 1000, Ride Command. MY17 Motorcycle: Roadmaster and Chieftain infotainment Future: Investments in key International programs are on track.  July 2016 Analyst  INTERNATIONAL  3 
 

 Battling through key challenges  INTERNATIONAL  2016 Challenges         Multix Retail   Slower Than PlanProduct IssuesRetail Financing        ORV Profitability   ATV competitionWeak EconomiesWarranty         Slingshot   Limited SuccessNiche ProductStill Learning  July 2016 Analyst  4 
 

 Winning with RZR & Indian. Emerging Markets Foundation Growing.   2016 HIGHLIGHTS         Motorcycle Growth  Revenue +27% YTD Octane LaunchCKD Brazil         ORV Results  RZR #1 LineExceeding ExpectationsAUS, EU, Mexico        BRIC Rev +33%  Brazil +70%Russia +73%India +20%China +17%          INTERNATIONAL  July 2016 Analyst  5 
 

 
   GOING FORWARD  
 

 Going Forward – ORV / Snowmobiles         RZR Focus  #1 BusinessMexico, China, UAE Key MY17 Product        Maximize Snow  Russia Rebound Gain Share PGA        Improve Profitability   EU LocalizationReduce LogisticsImprove Mix     PROFITABLY COMPETE IN OFF ROAD   INTERNATIONAL  July 2016 Analyst  7 
 

 
 Going Forward – Motorcycles        Full Throttle   EMEA Scout SixtyOctane MomentumAsia Expansion        Drive PGA  Indian Focus Strengthen BrandIncrease Rev$/unit         Find Success  France LeadsAsia HomologationMexico Expansion    Drive Motorcycle Growth  INTERNATIONAL  July 2016 Analyst  8 

 
       Significant Cost Reduction Opportunity     2016 Overview  Improve Poland Productivity Increased production volume and supplier localization Leverage speed and proximity to market with new EU specific limited edition models Streamline Global Logistics Consolidating distribution centers. Leveraging global scale. Reducing Inventory throughout value chain Reduce Operating Expenses Reorganization in EU, Australia and Medina yielding results Leveraging global marketing and engineering more effectively     Leverage Global Operations More Effectively  INTERNATIONAL  July 2016 Analyst  9 

   Going Forward - Build Emerging Markets     PROFITABLE GROWTH FOCUS - REVENUE TO $550M    BUILD EMERGING MARKET FOUNDATION        GROW BRIC SIGNIFICANTLY        TRIPLE INDIAN MOTORCYCLE BUSINESS        ESTABLISH MULTIX MOMENTUM               INTERNATIONAL  July 2016 Analyst  10 
 

 Continue Momentum. Beat Expectations. Build the International Foundation.     2016 2nd Half Plan    WHAT ARE WE GOING TO DO?    TOP LINE    BOTTOM LINE  TAKE COST OUT OF POLAND, LOGISTICS & OPEX  FULL THROTTLE WITH INDIAN & RZRSTABILIZE & MAXIMIZE DEVELOPED MARKETS (EU & ANZ)AGGRESSIVELY BUILD EMERGING MARKET FOUNDATION  PROFITABLY GROW REVENUE  July 2016 Analyst  11  INTERNATIONAL 
 

 
 POLARIS INDUSTRIES INC. / ANALYST & INVESTOR MEETING  Q&A  Mike Dougherty  President – International 

 
 Snowmobiles  Chris Wolf, Vice PresidentJuly 26, 2016  POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING 

 VIDEO    
 

 Global Snowmobile Industry Performance  Snowmobile Industry Outlook  Growth in Ultimate Segment  Growth in Crossover and Rec/Ut Segments  Industry Retail Units (5 yr CAGR +2% in N.A.; -3% in EMEA)  Stable N.A. industry, but low snowfall drove decline last seasonRussia industry is weak, eroding EMEA volumePremium segments are growing fastestRegistrations remain healthy at 1.9M in North AmericaRider demographics are stable  +5%  10/11   12/13   13/14  +12%  +9%   14/15   15/16  -4%   11/12  -16%  3  July 2016 Analyst 
 

 
 Fastest Growing Brand  Market Share Pts. Growth (Since MY’10 Pro-Ride Launch)  Retail Sales % Growth (Since MY’10 Pro-Ride Launch)  4  July 2016 Analyst  Outperforming the Industry Since 2010 

 
 Market Share (North America, Norway, Sweden, Finland)  Polaris Performance Highlights During 15/16 Season  Worldwide Share  12/13 Season  13/14 Season  14/15 Season  15/16 Season                                          Gained market share in both North America and ScandinaviaDelivered highest North America market share in 13 years, and back to #1 in the mountainsStrong growth from new MY’16 RMK in the AXYS chassis. Continued gains in Crossover, Rec/Ute.Rapid Timbersled growth continues, with product and distribution expansion                                  5  July 2016 Analyst 

 Product News 
 

 Timbersled  Trail and Rec/Ute  MY’17 Product News by Segment  Crossover and Mountain  Generating Buzz with 8 New Models + 6 Limited Editions  7  July 2016 Analyst 
 

 
 Driving Dealership Traffic  Best Partners and Athletes  Marketing Leadership  Industry-Leading Reach  Building our Brands and Reaching New Customers  Reaching New Audiences Through Partnerships  Targeted Marketing & Sales Promotions Drive Retail  Most Impressions & Engaged Fans      8  July 2016 Analyst 

 Growth Strategy Roadmap  1. Industry Leading Quality and Satisfaction Continuously, tangibly improving quality2. Product Innovation Expanded AXYS lineup performing well on snow and in the marketplace Timbersled product pipeline is strong3. Strong Marketing Support Growing, engaged fan base Best partners in the industry  Playing to Win in One of the World’s Most Passionate Powersports Segments  9  July 2016 Analyst 

 Snowmobiles Summary  Polaris Roadmap For Future Growth  Overview  Stable industry with extremely passionate ridersPolaris is gaining share in our core segmentsGrowing with new customers in new segments  Industry leading rider satisfactionProduct innovation in sleds, bikes, G&AAggressive demand creation  Reducing Shipments to Drive Dealer Inventory Down   1H 2015   1H 2016   FY 2014   FY 2016Implied Guidance  $69M   -3%$405M  $418M  -23%$53M  Down mid-teens %   FY 2015  Snowmobiles Revenue Including Snow-Related PG&A  10  July 2016 Analyst 

 POLARIS INDUSTRIES INC. / ANALYST & INVESTOR MEETING  Q&A  Chris Wolf  Vice President – Snowmobiles  
 

 
     Matt homanPresident – Off-road vehiclesAnalyst meetingJuly 26, 2016 

    AGENDA       1. Market and Polaris Overview       2. ORV Improvement Plan       3. ORV Vision  2  July 2016 Analyst 
 

 Market and Polaris Overview  1.     
 

 
 
 Polaris ORV Breakdown  Sxs and North America remain most critical  7%  SxS  US  Int’l  CAN  Mexico  Poland  Huntsville  Roseau  Revenue  Region  Manufacturing  SxS #1ATV important  NA continues to leadInt’l important long-term  Huntsville liveRoseau/Mexico criticalPoland feeds EMEA  4  July 2016 Analyst 

 
 
 Industry trends  1H industry trends slowed in Q2  7%  5 Year CAGR ATV = Flat5 Year CAGR SxS = 10%2016 ATV 1H = down MSD vs. LY – weakened in Q22016 SxS 1H Estimate = up MSD vs. LY – weakened in Q2  5  July 2016 Analyst 

 
 
 Additional growth opportunities  Large target groups exist  7%  6  Polaris Owners  2.3M  TODAY  FUTURE  4M Multi-Acre Homeowners  24% own ORV  26% own ORV    20K retail opportunity = 5 points of share  3M Intenderson PII.com  5M High-IncomeRec Enthusiasts  RURAL LANDOWNERS  RECREATION INTENDERS  POLARIS INSTALLED BASE  July 2016 Analyst 

   ATV  SxS          Value ATV, Utility SxS key drivers        Utility SxS        ATV value + youth        ATV value        Utility SxS        Continued threat  Market Share trends  Targeted Competitive Activity Impacts Market Share                        7  July 2016 Analyst 

 
 
 Competitive focus  Select competitors and Segments gaining  7%      Can-Am “L” models performing wellYamaha new Youth and “value” Kodiak  ATV  SxS  Honda Pioneer – especially 1000ccKawasaki – Pro-FXT utility solidPolaris General – big gains in crossover  8  July 2016 Analyst 

 Polaris 1H What Happened  The good news = our issues are in our control  1  2  Weakening Industry  Polaris IssuesRecalls/QualityInventory Reductions Market Share  Total $ vs. Plan: % Breakout  9  July 2016 Analyst 

 
 Polaris dealer inventory trend  Over $100m of dealer inventory removed  7%  -10%  -8%  10  July 2016 Analyst 

 
 
    1H Summary: Key factors       1. We Didn’t Execute Well (Quality = Critical Example)       2. Need to Address Competition (Not Everywhere, But In Some Key Spots)       3. The Market Has Slowed (Particularly in Q2)  Large Miss: Not That Complicated  11  July 2016 Analyst 

 
 ORV Improvement Plan  2.     
 

 
 1H moves to address  1H Laying the Groundwork for improvement  7%  Reduced Costs Significantly Reduced redundancies, streamlined functionsSimplified Plans / Reinvested Simplified, cut non-value add plans, reinvested $ in advertising/promoReworked Product Plans Cut products, competitive pricing moves, more big vs. small future plansJumpstarted Big Internal Quality Focus Dedicated resources, leveraged top talent, design changes   13  July 2016
 

ORV 2H Summary 1. Attack with Product 2. Battle for Every Customer 3. Fight for Every Sale #1 Off-Road vehicle company in the world 15 July 2016 Analyst

 
 
 2h plan    Attack with product    1000  New!    900    500  New! -$1,200  New!  BATTLE WITH SIGNIFICANT COMPETITIVE UPGRADE   16  July 2016 Analyst 
 

 
 2h plan    Attack with product  168HP  Ride command  POWER, SUSPENSION, AGILITY + TECHNOLOGY  17  July 2016 Analyst 

 
 NEW! HUNTER EDITION  NEW! GENERAL 4 1000 EPS  NEW! TURF MODE    Attack with product  CONTINUE TO RIP SHARE WITH GENERAL EXPANSION  18  July 2016 Analyst 
 

 2h plan    Attack with product  STRONG NEWS ON SPORTSMAN  Sportsman 1000  Sportsman 450  Ace 570  New!  New!  New! $6,999  19  July 2016 Analyst 
 

 2h plan    Attack with product  AGGRESSIVE PG&A LAUNCH PLAN  For the masses  15 NEW Hunt, Utility, Ag  13 New Accessories  25 New Integrated w/New Sportsman  20 
 

 2h plan  $3 MillionMore advertising  +25% TV  +56% DIGITAL  COMPETITIVEtargeting    Battle for every customer  Proving Grounds Website  Infomercials  15 Competitive Videos  STRONG 2H MARKETING PLAN  21 

 
 2h plan    Fight for every sale      1st EVER APP  Competitive Offers  biggest contest ever  $3 MILLION IN PAYOUTS  POWERFUL IN-STORE TOOLS      22 
 

 ORV Vision  3.      July 2016 Analyst  23 
 

 
 
    ORV Vision  #1 Off-Road vehicle company in the world  The Undisputed Leaders of the Off-RoadWe Will Deliver Unmatched Product Innovation Unmatched ride, handling AND powersports technology Fastest new product life cycleWe Will Transform the Customer Buying Experience Best digital shopping, lead generation, and customer service after saleWe Will Turn Our Lean Enterprise into a Competitive Advantage RFM delivers competitive advantage in flexibility and cost Culture of continuous cost/waste reduction  24  July 2016 Analyst 

 
 
    ORV Summary       1. 1H Performance Poor       2. Rock Solid 2H Plan to Improve       3. Clear Vision to Win  #1 Off-Road vehicle company in the world  25  July 2016 Analyst 

 
     Matt homanPresident – Off-road vehiclesQ&a 

 

 
 

 
 POLARIS INDUSTRIES INC. / ANALYST & INVESTOR MEETING  July 26, 2016  Ken PucelEVP – Global Operations, Engineering & Lean 

 Goal  2016 Performance (Safety, Quality, Delivery, Cost)  Quality (Rework %)  Safety (TRIR)  Quality Performance Poor. Strong Performance in Safety, Delivery and Cost.  Gross Value Improvement (Cost Down)  Delivery    Goal  Product  Capacity   ATV    Ranger    RZR    Snow    Motorcycles    Slingshot    GEM    TOTAL    G  G  G  G  G  G  G  Plant  Delivery  Huntsville    Roseau    Spirit Lake    Milford    Monterrey    Opole    Osceola    TOTAL    G  G  G  G  G  G  G  G  Polaris Total Recordable Injury Rate  Warranty $ / Sales  Materials  Plants  Logistics  PG&A    Indirect  Materials  Plants  Logistics  PG&A    +36% VIP   2015 Actual  2016 Fcst  G  Analyst Jul2015  2 

 
 2016 Value Improvement Momentum  36%+ More Than 2015. Momentum in 2016 Will Fuel 2017  All Teams Contributing  2016 Progress  2015  2016 Fcst  Solid Momentum across all areasMaterials Reductions (40%+ YoY)Negotiations and PWC “Should Cost” Engineering VAVEEngineering ORV De-ContentPlants (60%+ YoY) Spirit Lake and Plant VIP momentumLogistics (40%+ YoY) Leverage, Truck utilization, and Network OptimizationPG&A Pricing Optimization, Supply Chain ProductivityIndirect Initiatives PCs, Travel, Enterprise spend    Materials  Plants  Logistics  PG&A  Indirect  Materials  Plants  Logistics  PG&A    +36%   1,300+ Projects in VIP System  30+ Projects > $1M  305 Projects for 2017 already in hopper  Analyst Jul2015  3 

 
 Polaris Operations 2017-2021 Strategy  Translating the Polaris Vision and Strategy into Operations action  Analyst Jul2015    4 

 
 Operations Strategy Targets Best-in-Class Performance  Polaris Operations 2017-2021 Strategy  Vision: Polaris Operations will become a competitive advantage by achieving Best-in-Class performance in SQDC-Inventory-New Products.  What 5 Year Success Looks LikeSafety: Achieve “Best-in-Class” Product Safety Continue “Best-in-Class” workplace safetyQuality: 25% improvement of key metricsDelivery: 40% shorter delivery timesCost: >$600 million Gross VIPInventory: 30% improvement New Products: Improved Safety, Quality, Delivery and Speed  5  Analyst Jul2015 

 
 Safety and Quality Systems Focus  6  Safety and Quality Improvements Will Be Driven By Improved Systems and Execution  Polaris is focused on improving product safety and quality by improving our systems and execution.  Measures of Success  Quality System Focus Areas  Measure  Total Improvement  Safety and Quality Events  Faster ResponseRoot Cause Elimination  Warranty Rate  15%  Internal Rework  50%  Supplier Quality  25%  Net Promoter Scores  Industry Leading  Analyst Jul2015 

 
 Polaris Manufacturing Capacity 2017-2021   Polaris Manufacturing Will Lever Fixed Cost Over Period  7  Opole, Poland  Spirit Lake, IA  Huntsville, AL  Roseau, MN  Monterrey, Mexico  Lean Transformation Continues      ~ 60%  ~ 80%  Plants Aligned to Support Retail Flow Management (RFM)    Spirit Lake capacity in place to support Motorcycle growth        Drive Opole volume with EMEA targeted products  Load Roseau: Vertical Integration / Insourcing    Maintain Monterrey Leverage        Ramp Huntsville to support ORV and Slingshot Growth  Analyst Jul2015 

 
 Huntsville SOP Achieved May 31. Slingshot SOP Achieved July 6.   8  Huntsville: Building the Best Factory in Powersports  Analyst Jul2015  Lean & Technology Enabler  Production Status    2016 Production: 2 Lines Rangers/1 Line Slingshots      KPI’s  Comments  Safety  Implementing new LIFE Program   Quality  Validated and released ~1000 units   Delivery  97% on time to schedule  Cost  Performing at budget  Focus Area  Improvement  VIP  Labor Productivity  8%  Additional $12M+ VIP Technology Integration into Plant Network  Lead Time Reduction  50%    Backshop Velocity  33%    Reduction in WIP  30+%   

 9  80%  10%  10%  3%  5%  1%  Total Spend  Net Rate of Improvement    Global Operations 2017-2021 Cost Improvement Goals  Materials  Plants  Logistics  Category  Global Operations and Engineering 3% Net Annual Improvement  >$600M Gross   3% Rate of VIP Creates potential for 300-500 bps of gross improvements in Gross Margins  Analyst Jul2015 

 Material Cost Improvement  Increasing Material Cost Savings From 1.6% to ~3% Annually. >$400 Million Gross VIP.   10  2011-2015  2016-2021  ~3% 2016~3% AnnuallyImproved Quality       Material Cost Drivers  1.6% Annually   LCC/LCR  Platforming  Re-sourcing  Design / VAVE  Negotiation  Commodity Leverage  Localization  Insource  Material Cost Initiatives  Analyst Jul2015 

 
 Manufacturing Excellence  11  Driven to Become the Undisputed, Best Manufacturer  Achieve Best-in-Class performance in SQDCI by driving 5 key strategies and building upon 4 key enablers  Five Strategies Delivering ~ $100 M of Gross VIP and 5% Net Annual Cost ImprovementQuality System ExecutionLean ManufacturingBest people, Best teamManufacturing Agility Benchmarking Best Practices      35%     20%     30%     30%   Analyst Jul2015 

 
 Performance Improvement  Snow (Dec ‘15)  Weld (Nov ‘16)  Periodic Cycle-time Reduction  56%  62%  Walking Distance Reduction  29%  16%  Reduction in Space  29%  33%  Cycle-time / unit reduction time  12%  11%  VWI  Material Flow  Snow Transformation  Weld Transformation  Goals/ Metrics    LEAN in Polaris Plants – Recent Roseau Illustrative Example  Lean Transformations Occurring Across Plant Network  Hands On Plant Learning    LEAN  Analyst Jul2015    TransformationTransform workstations and get tools / materials into strike zone Standard WorkUse visual work instructions (VWI) to improve operator standard workLeader Standard WorkEstablishing cadence for leaders to coach and develop employeesCascading Goals and MetricsEstablish key standard metrics across organization across all levelsCycle Time ReductionEstablish tools such as Pro-planner to help better balance cycle time to Takt timeSetup ReductionReduce time required to switch from one product to another  12  ATV Assembly  SXS Assembly  Snow Assembly  Weld  Materials  Tube Fabrication  Injection Mold 

 PLANNING optimized logistics networksBUYING leverage logistics servicesOPERATING customer focused logistics Inbound to Manufacturing Outbound to DealersBENCHMARKING best practices and cost  Key Logistics Strategies  Inbound Truck Utilization  On -Time Logistics Performance  Logistics Performance  Fundamental Improvement In Logistics  13  Logistics Gross VIP  Logistics Net Performance  Logistics Related Part Shortages     Analyst Jul2015 

 
 Inventory Improvement 2017-2021  14  Improved Processes and Systems Will Drive Strong Inventory Performance  Develop organization, processes & tools to drive ongoing rates of improvement in inventory performance.  Inventory Turns Trend  30%+ Improvement Over Next 5 Years  Supply Chain DesignLocalization & insourcingVendor managed inventoriesPLC & VHCSupplier ManagementPerformance & corrective actionSIOPProcess ImprovementsForecastingDesigned inventory optimizationSupplier lead times Lean Materials ProcessesRFM Material flow Optimization of planning process  Design  Execute & Sustain  Plan  Initiatives & Capabilities  Goal: ~ $100 million Improvement in 2016              Analyst Jul2015 

 
  New Product Development  Product Design Capability Focus  Product Development Vitality Index  Product Development Driving Innovation at Polaris  Priorities  R&D Investment    % Contribution to Sales of Vehicles Introduced in Past 3 Years  Analyst Jul2015  15  Product Development Systems for Safety and QualityProduct Innovation and Customer Focused TechnologyValue Improvement and waste reductionProduct Development for Global markets   Safety Systems EngineeringSuperior Ride and HandlingExceptional Powertrains – Gas and ElectricVehicle style and ergonomicsElectronics and Software for the Rider ExperienceIntegrated Advanced Manufacturing Engineering  

 POLARIS INDUSTRIES INC. / ANALYST & INVESTOR MEETING  Q&A  Ken Pucel  EVP – Global Operations, Engineering & Lean