8-K

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


FORM 8-K

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

Date of Report (Date of earliest event reported): October 25, 2016

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

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

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

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

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

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

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

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

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

Item 2.02       Results of Operations and Financial Condition.

On October 25, 2016, Polaris Industries Inc. (the “Company”) issued a press release announcing the Company’s third quarter 2016 financial results for the reporting period ended September 30, 2016.  On October 25, 2016, 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 November 8, 2016 by dialing 855-859-2056 in the U.S. and Canada, or 404-537-3406 for international calls and entering passcode 95425239, and on the Company’s website at http://ir.polaris.com.

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

Item 7.01       Regulation FD Disclosure.

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

Item 9.01       Financial Statements and Exhibits.

(d) Exhibits.

99.1         Press Release dated October 25, 2016 of Polaris Industries Inc.

99.2         Presentation materials dated October 25, 2016 of Polaris Industries Inc.

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

SIGNATURES

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

Date:	October 25, 2016
		POLARIS INDUSTRIES INC.
		/s/ Michael T. Speetzen
		Michael T. Speetzen
		Executive Vice President – Finance and Chief Financial Officer of Polaris Industries Inc.

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release dated October 25, 2016 of Polaris Industries Inc.
99.2	Presentation materials dated October 25, 2016 of Polaris Industries Inc.

EX-99.1

Exhibit 99.1

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

Polaris Reports 2016 Third Quarter Results

Highlights:

Motorcycle retail sales increased high-single digits percent, and as expected, ORV retail sales were down high-single digits during the quarter. Total Company North American retail sales were down nine percent for the quarter, in-line with expectations.

ORV dealer inventory was down 16%, year-over-year. Total dealer inventory was down 10%.

Third quarter results included expenses totaling approximately $65 million for increased warranty, legal and other costs associated with product recall activity.

Announced acquisition of Transamerican Auto Parts (“TAP”) to bolster leadership position in a growing off-road aftermarket space.

Narrowing full year 2016 guidance of $3.40 to $3.60 per diluted share, on total Company sales declines of mid- to high-single digits.

MINNEAPOLIS--(BUSINESS WIRE)--October 25, 2016--Polaris Industries Inc. (NYSE:PII) today reported third quarter net income of $32.3 million, or $0.50 per diluted share, for the quarter ended September 30, 2016 compared to $155.2 million, or $2.30 per diluted share reported in the third quarter of 2015. Sales for the third quarter of 2016 totaled $1,185.1 million, down 19 percent from last year’s third quarter sales of $1,456.0 million.

“Our third quarter results, while discouraging, were in line with our revised guidance and reflect our ongoing execution of the RZR^® recalls and significant quality and safety improvement initiatives. During the past three months, we have accelerated our efforts to get our loyal owners back to riding safely, and are now over 50 percent complete with the RZR^® 900/1000 recalls and slightly below 50 percent on the more recent RZR^® Turbo recall notice. In addition to these recall challenges, we continued to face a weak overall Powersports industry, but were encouraged by continued retail strength for Indian and our overall motorcycle business, and the return to growth for side-by-sides in September,” commented Scott Wine, Polaris’ Chairman and Chief Executive Officer.

“We remain committed to improving our fundamentals and executing our long-term strategy to be the ‘Best in Powersports, Plus’. Our recent announcement to acquire Transamerican Auto Parts, a $740 million, vertically integrated multi-channel leader in the $10+ billion Jeep and truck aftermarket accessory space, is consistent with our strategy and exciting due to its growth potential. This transaction provides us an immediate leadership position in a growing market, while allowing us to accelerate growth and profitability for Polaris,” continued Mr. Wine. “We are making the necessary investments, both internally and externally, to realize the true potential of our organization. Along with improvements in product safety and quality, we are using Huntsville and our go to market Retail Flow Management (“RFM”) process to establish Lean as a competitive advantage, we are bringing technology to the forefront of our industry with Ride Command™, and we are working to transform the customer experience, from purchase to service, to enhance profitability. This commitment to improving our execution and our overall performance will drive a steadier cadence of growth and profitability in the future.”

Third Quarter Segment Results (in thousands)
Includes respective parts, garments and accessories ("PG&A") related sales
	Three months ended September 30,								Nine months ended September 30,
	2016			2015			Change		2016			2015			Change
Sales
Off-Road Vehicles/Snowmobiles	$	923,389		$	1,193,514		(23	)%	$	2,452,525		$	2,846,901		(14	)%
Motorcycles		183,193			188,679		(3	)%		602,762			535,699		13	%
Global Adjacent Markets		78,485			73,807		6	%		243,553			231,072		5	%
Total Sales	$	1,185,067		$	1,456,000		(19	)%	$	3,298,840		$	3,613,672		(9	)%
Gross profit
Off-Road Vehicles/Snowmobiles	$	231,323		$	388,542		(40	)%	$	670,982		$	927,803		(28	)%
% of sales		25.1	%		32.6	%	-750 bps			27.4	%		32.6	%	-523 bps
Motorcycles		21,164			28,424		(26	)%		89,841			73,236		23	%
% of sales		11.6	%		15.1	%	-351 bps			14.9	%		13.7	%	+123 bps
Global Adjacent Markets		21,828			21,200		3	%		66,163			61,987		7	%
% of sales		27.8	%		28.7	%	-91 bps			27.2	%		26.8	%	+34 bps
Corporate		(13,545	)		(22,543	)				(34,135	)		(34,258	)
Total gross profit	$	260,770		$	415,623		(37	)%	$	792,851		$	1,028,768		(23	)%
% of sales		22.0	%		28.5	%	-655 bps			24.0	%		28.5	%	-444 bps

Off-Road Vehicle (“ORV”) and Snowmobile segment sales, including its respective PG&A sales, decreased 23 percent from the third quarter of 2015 to $923.4 million. Gross profit decreased 40 percent to $231.3 million, or 25.1 percent of sales, in the third quarter of 2016, compared to $388.5 million, or 32.6 percent of sales, in the third quarter of 2015 due to higher warranty costs related to recent recall activity primarily for the Company’s RZR^® vehicles.

ORV wholegood sales decreased 25 percent to $619.0 million reflecting the Company’s decision to delay model year 2017 shipments, including the high margin RZR^® Turbo vehicles, in order to revalidate its new model line-up and protect dealer inventory levels. Compared to the 2015 third quarter, Polaris North American ORV unit retail sales were down high-single digits percent, consisting of consumer purchases for side-by-side vehicles down high-single digits percent and ATV retail sales down low-double digits percent. The North American ORV industry was down low-single digits percent compared to the third quarter last year. ORV dealer inventory was down 16 percent in the 2016 third quarter compared to the same period last year.

Snowmobile wholegood sales decreased 35 percent to $119.9 million due to timing of shipments, year-over-year, as the Company manufactured and shipped its snowmobiles earlier in 2015.

Motorcycle segment sales, including its respective PG&A sales, decreased three percent in the 2016 third quarter to $183.2 million. Victory^® and Indian^® motorcycles reported increased vehicle sales growth, while Slingshot^® sales were down during the quarter due to shipment timing. Gross profit decreased 26 percent to $21.2 million, or 11.6 percent of sales in the third quarter of 2016, compared to $28.4 million, or 15.1 percent of sales, in the third quarter of 2015 due to higher warranty expense related to recent safety and service bulletins, primarily for Slingshot^®.

North American consumer retail demand for the Polaris motorcycle segment, including Victory^®, Indian Motorcycle^® and Slingshot^®, increased high-single digits percent during the 2016 third quarter with Indian Motorcycle^® and Victory^® increasing low-teens percent combined, while overall motorcycle industry retail sales 900cc and above was down high-single digits percent in the 2016 third quarter. Product availability for all three motorcycle brands remained adequate throughout the quarter as both the Company’s Spirit Lake, Iowa motorcycle plant and the new Slingshot^® production line in Huntsville, Alabama are producing at retail demand levels.

Global Adjacent Markets segment sales along with its respective PG&A sales, increased six percent to $78.5 million in the 2016 third quarter compared to the 2015 third quarter. Gross profit increased three percent to $21.8 million, or 27.8 percent of sales, in the third quarter of 2016, compared to $21.2 million, or 28.7 percent of sales, in the third quarter of 2015.

Supplemental Data:

Parts, Garments, and Accessories (“PG&A”) sales, which are included in each of the three respective reporting segments, declined one percent during the 2016 third quarter to $224.4 million driven by lower retail sales.

International sales to customers outside of North America totaled $141.0 million for the third quarter of 2016, including PG&A, a decrease of eight percent from the same period in 2015. International sales on a constant currency basis were down seven percent in the 2016 third quarter.

Gross profit for the total Company decreased 37 percent to $260.8 million in the third quarter of 2016, compared to $415.6 million in the third quarter of 2015. As a percentage of sales, gross profit declined 655 basis points to 22.0 percent of sales for the third quarter of 2016, compared to 28.5 percent of sales for the same period last year. Increased warranty and promotional costs and negative product mix, partially offset by lower commodity costs and product cost reduction efforts, were the primary reasons for the gross margin erosion.

Operating expenses increased 16 percent to $222.6 million, or 18.8 percent of sales, for the third quarter of 2016, compared to $192.0 million, or 13.2 percent of sales, for the third quarter of 2015. The change was primarily driven by higher general and administrative expenses due to higher product liability and recall related legal costs and increased research and development expenses for product revalidation and ongoing innovation.

Income from financial services was $19.2 million during the third quarter 2016, a one percent increase compared to $19.1 million in the third quarter of 2015 directly related to lower retail sales during the quarter.

Non-operating other expense (income), net, which primarily relates to foreign currency exchange-rate movements and the corresponding effects on foreign currency transactions related to the Company’s foreign subsidiaries, was $5.7 million of expense in the third quarter of 2016 compared to $1.3 million of income in the third quarter of 2015.

The provision for income taxes for the third quarter of 2016 was $13.5 million or 29.5 percent of pretax income compared to $84.5 million or 35.3 percent of pretax income for the third quarter of 2015. The lower income tax provision rate in the third quarter 2016 is primarily due to the extension of the research and development credit by the U.S. Congress in the 2015 fourth quarter, in addition to certain favorable tax adjustments in the 2016 third quarter that had a more significant impact on the income tax rate due to the lower pretax income generated during the quarter.

Financial Position and Cash Flow

Net cash provided by operating activities was $426.2 million for the nine months ended September 30, 2016, compared to $464.0 million for the same period in 2015. The decrease in net cash provided by operating activities for the 2016 period was due to lower net income in the quarter offset somewhat by lower factory inventory and increased accrued expenses. Total debt for the quarter, including capital lease obligations and notes payable, was $436.7 million. The Company’s debt-to-total capital ratio was 32 percent at September 30, 2016, compared to 25 percent a year ago. Cash and cash equivalents were $122.7 million at September 30, 2016, down from $225.3 million for the same period in 2015.

Share Buyback Activity

During the third quarter 2016, the Company repurchased and retired 111,000 shares of its common stock for $10.5 million. As of September 30, 2016, the Company currently has authorization from its Board of Directors to repurchase up to an additional 8.6 million shares of Polaris stock.

2016 Business Outlook

For the full year 2016, the Company is narrowing its earnings guidance range to $3.40 to $3.60 per diluted share with sales expected to be down in the mid- to high-single digit percent range. The full year 2016 earnings guidance excludes the TAP acquisition. Sales expectations by segment for the full year 2016 are as follows: ORV/Snowmobile sales expected down in the high-single to low-double digits percent range; Motorcycle sales up low-single digits percent; and Global Adjacent Market sales up high-single digits percent.

Non-GAAP Measure - Constant Currency Reporting

This release and our related earnings call include a discussion of the Company’s 2016 third quarter results and 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.

Third Quarter Conference Call and Webcast Presentation

Today at 9:00 AM (CT) Polaris Industries Inc. will host a conference call and webcast to discuss the third quarter 2016 results released this morning. The call will be hosted by Scott Wine, Chairman and CEO; Ken Pucel, Executive Vice President – Operations, Engineering and Lean; and Mike Speetzen, Executive Vice President – Finance and CFO. A slide presentation and link to the webcast will be posted on the Polaris Investor Relations website at ir.polaris.com.

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 # 95425239.

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.

About Polaris

Polaris Industries Inc. (NYSE: PII) is a global powersports leader with annual 2015 sales of $4.7 billion. Polaris fuels the passion of riders, workers and outdoor enthusiasts with our RANGER^®, RZR^® and Polaris GENERAL™ side-by-side off-road vehicles; our Sportsman^® and Polaris ACE^® all-terrain off-road vehicles; Victory^® and Indian Motorcycle^® midsize and heavyweight motorcycles; Slingshot^® moto-roadsters; and Polaris RMK^®, INDY^®, Switchback^® and RUSH^® snowmobiles. Polaris enhances the riding experience with parts, garments and accessories sold under multiple recognizable brands, and has a growing presence in adjacent markets globally with products including military and commercial off-road vehicles, quadricycles, and electric vehicles. www.polaris.com

Except for historical information contained herein, the matters set forth in this news release, including management’s expectations regarding 2016 and future sales, shipments, net income, and net income per share and operational initiatives 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 expansion initiatives, cost reduction initiatives, product offerings, promotional activities and pricing strategies against competitors; economic conditions that impact consumer spending; acquisition integration costs; product recalls; 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; 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 documents filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements.

(summarized financial data follows)

POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Data) (Unaudited)
	Three months ended September 30,					Nine months ended September 30,
	2016		2015			2016		2015
Sales	$	1,185,067	$	1,456,000		$	3,298,840	$	3,613,672
Cost of sales	924,297		1,040,377			2,505,989		2,584,904
Gross profit	260,770		415,623			792,851		1,028,768
Operating expenses:
Selling and marketing	89,751		91,169			244,812		240,510
Research and development	47,568		44,432			136,256		124,726
General and administrative	85,257		56,411			219,403		157,898
Total operating expenses	222,576		192,012			600,471		523,134
Income from financial services	19,195		19,065			59,155		51,345
Operating income	57,389		242,676			251,535		556,979
Non-operating expense:
Interest expense	4,051		2,966			10,718		8,848
Equity in loss of other affiliates	1,798		1,345			5,439		4,716
Other expense (income), net	5,700		(1,345		)	7,586		8,776
Income before income taxes	45,840		239,710			227,792		534,639
Provision for income taxes	13,528		84,537			77,425		189,960
Net income	$	32,312	$	155,173		$	150,367	$	344,679
Net income per share:
Basic	$	0.50	$	2.35		$	2.33	$	5.20
Diluted	$	0.50	$	2.30		$	2.30	$	5.09
Weighted average shares outstanding:
Basic	64,151		65,912			64,535		66,222
Diluted	65,027		67,368			65,435		67,781

POLARIS INDUSTRIES INC. CONSOLIDATED BALANCE SHEETS (In Thousands) (Unaudited)
	September 30, 2016		September 30, 2015
Assets
Current Assets:
Cash and cash equivalents	$	122,696	$	225,264
Trade receivables, net	152,342		176,221
Inventories, net	755,943		674,612
Prepaid expenses and other	63,594		72,241
Income taxes receivable	55,096		10,052
Deferred tax assets	—		111,251
Total current assets	1,149,671		1,269,641
Property and equipment, net	687,697		587,935
Investment in finance affiliate	92,203		88,690
Deferred tax assets	173,741		46,271
Goodwill and other intangible assets, net	271,419		232,142
Other long-term assets	95,594		83,467
Total assets	$	2,470,325	$	2,308,146
Liabilities and Shareholders’ Equity
Current Liabilities:
Current portion of debt, capital lease obligations and notes payable	$	4,746	$	4,839
Accounts payable	308,971		381,174
Accrued expenses:
Compensation	112,025		104,336
Warranties	130,054		55,097
Sales promotions and incentives	162,853		145,091
Dealer holdback	116,386		101,261
Other	139,145		83,553
Income taxes payable	11,898		34,269
Total current liabilities	986,078		909,620
Long term income taxes payable	25,241		15,201
Capital lease obligations	19,122		20,652
Long-term debt	412,844		289,197
Deferred tax liabilities	12,574		15,913
Other long-term liabilities	77,025		105,280
Total liabilities	$	1,532,884	$	1,355,863
Deferred compensation	9,110		14,923
Shareholders’ equity:
Total shareholders’ equity	928,331		937,360
Total liabilities and shareholders’ equity	$	2,470,325	$	2,308,146

POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited)
	Nine months ended September 30,
	2016			2015
Operating Activities:
Net income	$	150,367		$	344,679
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	121,903			112,902
Noncash compensation	43,137			53,642
Noncash income from financial services	(22,354		)	(21,810		)
Deferred income taxes	(8,134		)	(5,280		)
Excess tax benefits from share-based compensation	(1,408		)	(34,301		)
Other, net	12,027			4,716
Changes in operating assets and liabilities:
Trade receivables	5,686			22,700
Inventories	(33,804		)	(112,776		)
Accounts payable	5,702			35,002
Accrued expenses	145,207			13,621
Income taxes payable/receivable	(278		)	54,389
Prepaid expenses and others, net	8,193			(3,482		)
Net cash provided by operating activities	426,244			464,002
Investing Activities:
Purchase of property and equipment	(155,360		)	(148,998		)
Investment in finance affiliate, net	29,223			22,227
Investment in other affiliates	(6,861		)	(15,337		)
Acquisition of businesses, net of cash acquired	(54,830		)	(27,019		)
Net cash used for investing activities	(187,828		)	(169,127		)
Financing Activities:
Borrowings under debt arrangements / capital lease obligations	1,767,272			2,155,310
Repayments under debt arrangements / capital lease obligations	(1,795,316		)	(2,059,711		)
Repurchase and retirement of common shares	(154,381		)	(247,795		)
Cash dividends to shareholders	(105,732		)	(104,808		)
Proceeds from stock issuances under employee plans	15,651			26,672
Excess tax benefits from share-based compensation	1,408			34,301
Net cash used for financing activities	(271,098		)	(196,031		)
Impact of currency exchange rates on cash balances	29			(11,180		)
Net increase (decrease) in cash and cash equivalents	(32,653		)	87,664
Cash and cash equivalents at beginning of period	155,349			137,600
Cash and cash equivalents at end of period	$	122,696		$	225,264

EX-99.2

Exhibit 99.2

Third Quarter 2016 Earnings Results  October 25, 2016  POLARIS INDUSTRIES INC.

Except for historical information contained herein, the matters set forth in this document, including but not limited to management’s expectations regarding 2016 and 2017 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; product recalls; 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 actual results and full year 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. 2  Q3'16 Earnings  SAFE HARBOR

Scott W. Wine Chairman & CEO Third Quarter 2016 Earnings Results October 25, 2016 POLARIS INDUSTRIES INC. Q3'16 Earnings 3

Q3 sales and net income finished in-line with pre-release expectations ORV/Snowmobile sales down 23%; Motorcycles down 3%; Global Adjacent Markets up 6% Results include ~$65 million of costs associated with recall activity Earnings reported at $0.50 per diluted share, down 78% from prior year Gross profit margin down 655 bps – volume, mix and warranty pressure, as indicated N.A. dealer inventory down 10%, in line with company expectations ORV down 16%; motorcycles up as production has normalized Q3 Sales & Earnings Finished In-Line With Revised Expectations Q3 2016 Net Income Q3 2016 Sales  4 Q3'16 Earnings Q3 2016 Sales and Income -79% ($ millions) ($ millions) -19%

Polaris N.A. retail down 9% for Q3 2016 vs. Q3 2015 ORV down; MY’17 shipment delays, RZR recall disruptions; September retail trends improved in line with expectations Motorcycle retail sales up, Industry down North American Industry retail trends continue to be weak; Q3 down Oil/Gas, Ag remain weak, election uncertainty Managing Through Soft Industry Retail Trends  Retail Sales by Business vs. Q3 2015 Polaris Retail Sales vs. Prior Year  5 Q3'16 Earnings Q3 2016 N.A. Powersports Retail Sales (# vehicle units) POLARIS  INDUSTRY Off-Road Vehicles  high-single digits %  low-single digits %* Side-by-Sides ATVs   high-single digits %  low-double digits % Motorcycles(900cc & above)  high-single digits %  high-single digits % Snowmobiles N/M (off-season) N/M (off-season) *estimated N/M = Not Meaningful (% change, # vehicle units)

Polaris Q3 2016 N.A. dealer inventory down 10% vs. Q3 2015 ORV down 16% year-over-year Motorcycles up significantly as expected, shipments normalized Snowmobiles down – timing, off-season Dealer inventory levels aggressively monitored Remain Diligent in Controlling Dealer Inventory Levels in Weak Industry Total N.A. Dealer Inventory Polaris N.A. Total Dealer Inventory 6 Q3'16 Earnings  N.A. Dealer Inventory -10% -10%  

Previously announced recalls progressing on/ahead of plan Completion rates increasing weekly Slingshot safety/service bulletins issued 10/24 Anticipated costs included in Q3 results No injuries reported Safety and quality improvements enhanced, including: Hired internal and external engineering experts Created new independent safety and quality function Enhanced post-sales surveillance Remain market share leader in side-by-sides RZR share nearly 2½ times all competitors combined RANGER share over 2 times the next largest competitor Recall Activity Accelerated to Get Polaris Owners Back Riding 7 Q3'16 Earnings 2016 Product Recalls Update

Motorcycles Off-Road Vehicles Remain on Offense with Product 8 Q3'16 Earnings MY’17 Key Product Launch Summary RANGER XP® 1000 More Power Industry first gas HVAC3 driver modes ACE™ 500 / XC 900 More power Wider, longer New 850 & 1000 More power Utility versions   RZR® Turbo – 168 HPRace inspired ride & handling GENERAL™ 2 & 4-seatsTurf modeRide Command™ (MY ‘17.5)  RIDE COMMAND™ Largest screen Fastest interface Most customizable OCTANE®104 HP, 76 FT-16 torque 32° lean angle Modern American Muscle SLINGSHADE™ #1 requested accessory, sleek lines, lightweight, removable T-top panels RIDE COMMAND™ Industry’s 1st technology connected vehicle

$740 million fully-integrated manufacturer, distributor, retailer & installer of off-road Jeep and truck accessories 75 retail stores, 6 distribution centers, ~1,700 employees Strong, experienced leadership teamTAP to continue as distinct business Anticipated Reporting Structure After Close  Transamerican Auto Parts (TAP)  Profitable Addition to Polaris Aftermarket Portfolio with Minimal Integration Risk 9 Q3'16 Earnings  Recently Announced Acquisition Existing Aftermarket Brands Steve Eastman President – PG&A / Aftermarket 30+ Years Retail Experience New Reporting Segment: Aftermarket PG&A +

Mike Speetzen EVP Finance & CFO Third Quarter 2016 Earnings Results October 25, 2016 POLARIS INDUSTRIES INC. Q3'16 Earnings 10

Narrowing Guidance as Visibility Improves Nearing Year-end 11 Q3'16 Earnings 2016 Full Year Guidance Segments Total Company Sales & EPS  Assumptions Protect market share – increased incentives Dealer inventory down mid- to high-single digits % F/X = minus ~35¢ per share Share count down ~3% Net income $ down 48% to 51% Gross margins down 380 to 390 bps  mid- to high-single digits % (unchanged from Pre-Release) 47% to 50% $3.40 to $3.60(narrowed)  Down high-single to low-double digits % ORV ORV PG&A PG&A Snow $3,708.9 Snow $698.3 UpLow-single digits % Victory Indian Slingshot Victory Indian Slingshot PG&A PG&A PG&A PG&A W&T Defense W&T Defense Up high-single digits % $312.1 Sales EPS (diluted) Off-Road Vehicles /Snowmobiles Motorcycles Global Adjacent Markets ($ millions) ($ millions)

∆ from Q3’15 25% 0% 35% Q3 2016 ORV/Snowmobile Segment Sales ORV down 25% due to weak industry / recall impactDelayed MY’17 shipments for safety revalidation Promotional environment remained aggressive PG&A flat; delayed ’17 PG&A shipments with wholegoods ORV average selling price down 8% in Q3 12 Q3'16 Earnings Off-Road Vehicles (ORV) / Snowmobiles  ($ millions) 23%$923.4 $1,193.5 ORV PG&A Snow ORV PG&A Snow Weak Industry / Recall Activity Overshadowing Improved Execution RANGER XP® 1000 Ranch Edition

10% 2%  Q3 2016 Motorcycle Segment Sales Motorcycles down 3% Indian and Victory up Slingshot down – shipment timing Full-year guidance revised down due to weaker industry trends Average selling price was down 1% in Q3 – product mix  Share Gains Continue 13 Q3'16 Earnings Motorcycles ($ millions) 3% $183.2 $188.7 PG&A Victory Indian Slingshot Victory Indian Slingshot PG&A ∆ from Q3’15 INDIAN SPRINGFIELD™  Indian® Roadmaster®  HOOLIGAN RACING  Indian® Super Hooligan Scout® Sixty

Q3 2016 GAM Segment Sales GAM  6% due to Taylor-Dunn acquisition PG&A up due to Taylor-Dunn acquisition Average selling price for GAM was up 1% in Q3 Building Existing Portfolio & Capabilities 14 Q3'16 Earnings  Global Adjacent Markets (GAM) ($ millions) PG&A PG&A Work & Transportation/Defense 6%$78.5 $73.8 Work &Transportation/Defense  14% 5% ∆ from Q3’15  BIGFOOT™ Econo Cab, 48V A customizable electric powered utility vehicle

International  Parts, Garments & Accessories (PG&A) 15 Q3'16 Earnings Q3 2016 Supplemental Sales Performance Motorcycles Global Adjacent Markets (GAM) Snowmobiles Motorcycles Global Adjacent Markets (GAM) Apparel 13% 14%  LatinAmerica 10%  1%  5% 11%  1%  3%  8% 12%  3% 19% 14% Q3 Sales 1% to $224.4 Million ∆ from Q3'15 ∆ from Q3'15 Q3 Sales 8% to $141.0 Million (-7% constant currency) ∆ from Q3'15 ∆ from Q3'15

Gross Profit Margin Guidance by Component Gross Profit Margin Full-Year Guidance Q3 2016 Actual FY 2016 Guidance Prior period 28.5% 28.4% Production volume/capacity Product cost reduction efforts Commodity costs Currency rates Higher selling prices Product mix Motorcycle Production Constraints New plant start-up costs Warranty costs Depreciation/Tooling amortization Sales promotional costs Current period 22.0% 24.5% to 24.6% Change -655 bps -380 to -390 bps Assumptions F/X = minus ~100 bps Warranty significantly higher, ~200 bps year-over-year Value Improvement Process (VIP) & commodities ongoing All segment gross margins expected lower for FY’16 Warranty Costs Significantly Higher to Expedite Recall Completion 16 Q3'16 Earnings 2016 Gross Profit Margin Guidance 380 bps to 390 bps  KEY: Improvement Headwind Neutral  

17 Q3'16 Earnings Operating expenses: increase around ~300 bps, as a % of sales (legal & other recall related costs / acquisitions) Income from financial services: grow faster than total company sales Income taxes: approximately equal to 2015 income tax rate of 33.6% International sales: about flat with 2015 PG&A sales: grow faster than overall company Other FY 2016 Expectations

18 Q3 10-21-15 Continued Powersports industry challenges: flat to down third straight year Oil and Gas/Ag unchanged: ongoing pressure Tough competitive environment: promo spending remains elevated Non-recurring charges of $120 million, primarily in gross margins Mid-teens percent increase in R&D investments: safety, quality and innovation LEAN evolution progressing; ongoing VIP, side-by-side RFM implementation 2017 Initial Thoughts

Scott W. Wine Chairman & CEO Third Quarter 2016 Earnings Results October 25, 2016 POLARIS INDUSTRIES INC. Q3'16 Earnings 19

Powersports Markets Uninspiring, But Internal Execution Improves Significantly on All Levels 20 Q3 10-21-15 Global markets and economies: weak and unpredictable Political risks increasing: structural impediments to growth not addressed PII market position improves: ORV share stabilizes / Motorcycle share grows Solid foundation to build on: better inventories, lead times, TAP, etc. SQDC: Execution, execution, execution… Closing Comments

Thank You Questions?

22 Q3'16 Earnings Vision and Strategy Foreign Currency Exposure Q3 Financial Position Income from Financial Services SUPPLEMENTAL DATA

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 growth Net 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 23 Q3'16 Earnings Strategy and Objectives Remain Valid & Achievable

24 Q3'16 Earnings Foreign Currency Exposure for Polaris Foreign Currency Hedging Contracts Outstanding Currency Impact on Net Income Compared to Prior Year Period Foreign Currency Currency Position  Q4 ’16 Cash Flow Exposure Hedged (Approx.) Notional Amounts (US $ in Millions) Avg. Exchange Rate of Open Contracts  FY 2016 (Expectation) Canadian Dollar (CAD) Long 80% $79 $0.72 to 1 CAD Negative Australian Dollar (AUD) Long 70% $23 $0.73 to 1 AUD Negative Euro (EUR) Long 0% - - Slightly Negative Japanese Yen (JPY) Short 5% $0 117 Yen to $1 Negative Mexican Peso (MXN) Short 100% $23 18 Peso to $1 Positive F/X Impacts vs. Prior Year($ in millions) Actual Q3 2016 FY 2016 Expectations Sales ($2) ($35) Gross Profit ($0) ($45) Pretax Income ($6) ($35) Open F/X Hedging Contracts as of September 30, 2016

Q3 2016 Polaris Financial Position 25 Q3'16 Earnings Capital Summary September 2016 Cash Drivers Fav/(Unfav) Sept 2015 Cash $ 123 -46% Debt /Capital Lease Obligations $ 437 +39% Shareholders’ Equity $ 928 -1% Total Capital $1,365 +9% Debt to Total Capital 32% (+7%) 2015 Operating cash flow down Factory inventory up year-over-year Cap Ex expected to be slightly higher than 2015 Operating Cash Flow Financial Position Remains Solid UpDouble-digits ($ millions) ($ millions) ($ millions) Expectations Q3 2016 Summary 2016 Expectations

Retail Credit Wholesale Credit PA Receivables 26 Q3'16 Earnings Income from Financial Services Portfolio Remains Healthy INCOME FROM FINANCIAL SERVICES 2016 expectations: grow faster than total Company sales Q3 income from financial services about flat – volume related New Wells Fargo P.A. partner working well $19.1 1%$19.2 6% $1,246.3 $1,321.1 ($ millions) ($ millions) Approval Rate Penetration Rate