8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, 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): July 20, 2017

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 55Medina, 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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02       Results of Operations and Financial Condition.

On July 20, 2017, Polaris Industries Inc. (the “Company”) issued a press release announcing the Company’s second quarter 2017 financial results for the reporting period ended June 30, 2017.  On July 20, 2017, 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 August 3, 2017 by dialing 855-859-2056 in the U.S. and Canada, or 404-537-3406 for international calls and entering passcode 45016084, 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 July 20, 2017 of Polaris Industries Inc.
99.2	Presentation materials dated July 20, 2017 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 20, 2017
		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 July 20, 2017 of Polaris Industries Inc.
99.2	Presentation materials dated July 20, 2017 of Polaris Industries Inc.

EX-99.1

Exhibit 99.1

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

Polaris Reports 2017 Second Quarter Results

Sales for the second quarter of 2017 increased 21% to $1,364.9 million; adjusted sales increased 20% to $1,358.8 million.

Second quarter2017 reported net income was $0.97 per diluted share; adjusted net income for the same period was $1.16 per diluted share, slightly ahead of expectations

Polaris North American ORV unit retail sales were down low-single digits percent, a sequential improvement from the first quarter, with increasing side-by-side retail sales somewhat offsetting lower ATV retail sales.Indian Motorcycle^® continued to deliver strong retail sales increasing 17% for the quarter.

Total dealer inventory was down 6% year-over-year; ORV dealer inventory was down 6%

Polaris raising full year sales guidance and narrowing its earnings per share outlook.Adjusted net income expected to be in the range of $4.35 to $4.50 per diluted share with adjusted sales for the full year 2017 expected in the range of up 12% to 14%.

Note: the results and guidance in this release, including the highlights above, include references to non-GAAP operating measures, which are identified by the word “adjusted” preceding the measure. A reconciliation of GAAP to non-GAAP measures can be found at the end of this release.

MINNEAPOLIS--(BUSINESS WIRE)--July 20, 2017--Polaris Industries Inc. (NYSE: PII) today reported second quarter 2017 sales of $1,364.9 million, up 21 percent, from $1,130.8 million for the second quarter of 2016. Adjusted sales, which excludes the impact from Victory Motorcycles^® net sales for the second quarter of 2017, were $1,358.8 million compared to $1,130.8 million in the prior year period. The Company reported second quarter 2017 net income of $62.0 million, or $0.97 per diluted share, compared with net income of $71.2 million, or $1.09 per diluted share, for the 2016 second quarter. The reported net income included costs related to the wind down of Victory Motorcycles, certain Transamerican Auto Parts ("TAP") integration and inventory step up costs, and manufacturing network realignment costs. Adjusted net income for the quarter ended June 30, 2017, excluding these costs, was $73.9 million, or $1.16 per diluted share.

“Performance improved in many parts of our business during the quarter, particularly within our international and PG&A businesses. The powersports industry remained very competitive and headwinds persist, but we were encouraged by the return to growth in our Side-by-Side business and continued strength and aggressive share gains for Indian Motorcycles. In a weak motorcycle industry, Indian continues to demonstrate how a complementary combination of exciting new bikes, strong dealer execution and overall brand momentum can prevail. Dealer engagement is a corporate priority and from profitability to delivery and communications, the consistent progress we are making is augmenting our retail results. We still have a lot of work to do, but we are seeing results from the strong and sustainable improvements we are making to the fundamentals of our business, as we establish the foundation of a renewed growth platform,” commented Scott Wine, Chairman and Chief Executive Officer of Polaris Industries.

Wine continued, “I am proud of the hard work and progress our Polaris team made in the first half of 2017, and our commitment to regaining our winning momentum in powersports is deep and strong. From significant new innovations in performance, reliability, and rider safety, to upgrading our plants and supply chain, we have made substantial investments both in enhancing our safety and quality practices, and in research and development to accelerate the cadence of our new product introductions. The fruits of this labor will be on display next week, when we unveil our exciting new model year ORVs and Motorcycles. These vehicles will demonstrate our capability to deliver the innovation and quality expected from the leader in Powersports, as well as improved results and enhanced shareholder value.”

Off-Road Vehicle (“ORV”) and Snowmobile segment sales, including their respective PG&A related sales, were $845.5 million for the second quarter of 2017, compared with $799.3 million for the second quarter of the prior year, representing a six percent increase, year-over-year, driven primarily by improved ORV shipments of side-by-sides. PG&A sales for ORV and Snowmobiles combined, increased five percent in the 2017 second quarter compared to the second quarter last year. Gross profit increased 16 percent to $266.2 million, or 31.5 percent of sales, in the second quarter of 2017, compared to $228.5 million, or 28.6 percent of sales, in the second quarter of 2016. Gross profit percentage increased primarily due to product mix.

ORV wholegood sales for the second quarter of 2017 increased six percent as the Company began shipping RZR vehicles at a more normalized rate. Polaris North American ORV unit retail sales for the second quarter of 2017 were down low-single digits percent from the 2016 second quarter, which included consumer purchases for side-by-side vehicles up low-single digits percent and ATV retail sales down high-single digits percent. The North American ORV industry was up mid-single digits percent compared to the second quarter last year. ORV dealer inventory was down six percent in the 2017 second quarter compared to the same period last year.

Snowmobile wholegood sales in the second quarter of 2017 decreased 22 percent to $6.7 million. Snowmobile sales in the Company’s second quarter are routinely low as it is the off-season for snowmobile retail sales and shipments.

Motorcycle segment sales, including its PG&A related sales in the second quarter of 2017, was $198.0 million, a decrease of 13 percent compared to $228.4 million reported in the second quarter of 2016, which included $6.2 million of Victory motorcycle wholegood, accessory and apparel sales versus $54.0 million of Victory sales reported in the second quarter of 2016. Indian motorcycle wholegood sales increased significantly in the second quarter driven by new product introductions and increased awareness of the brand. This increase was more than offset by significantly lower Slingshot^® sales. Gross profit for the second quarter of 2017 was $21.1 million compared to $38.9 million in the second quarter of 2016. Adjusted for the Victory wind down costs of $8.9 million, motorcycle gross profit was $30.0 million, down from the second quarter last year due primarily to lower Slingshot volume.

North American consumer retail demand for the Polaris motorcycle segment, including Indian Motorcycle and Slingshot, was down low-single digits percent during the 2017 second quarter, while the overall motorcycle industry retail sales, 900cc and above, was down mid-single digits percent in the 2017 second quarter. Indian Motorcycles retail sales increased 17 percent and continued to gain market share, driven by new model introductions and continued strong demand for the Company's new highly customizable, split-screen Ride Command^TM touchscreen infotainment system available on certain models. Slingshot retail sales were down significantly due in part to tough comparables versus the prior year period driven by increased shipments in the second quarter of 2016 ahead of our production move from Iowa to Huntsville and the cadence of several limited edition models introduced in the second quarter last year.

Global Adjacent Markets segment sales along with its PG&A related sales, increased seven percent to $97.0 million in the 2017 second quarter compared to $91.0 million in the 2016 second quarter. Reported gross profit decreased 11 percent to $21.2 million, or 21.9 percent of sales, in the second quarter of 2017, compared to $24.0 million, or 26.3 percent of sales, in the second quarter of 2016. Adjusted gross profit, excluding the manufacturing realignment costs, increased seven percent to $25.5 million, or 26.3% for the second quarter 2017. Work and Transportation group wholegood sales were up 13 percent during the second quarter of 2017 primarily due to and an increase in direct sales to commercial customers and our higher sales in the Company's Aixam quadricycles and Goupil light-utility businesses.

Aftermarket segment sales which includes Transamerican Auto Parts ("TAP"), along with the Company's other aftermarket brands of Klim^®, Kolpin^®, Pro Armor^®, Trail Tech^® and 509^®, increased significantly to $224.4 million in the 2017 second quarter compared to $12.1 million in the 2016 second quarter. TAP added $209.1 million of sales in the second quarter of 2017. Gross profit increased significantly to $59.9 million, or 26.7 percent of sales in second quarter of 2017, compared to $3.0 million, or 24.7 percent of sales, in the second quarter of 2016. Sales and gross profit dollars were up primarily due to the addition of TAP acquired in the fourth quarter of 2016. TAP grew six percent in the second quarter 2017 compared to last year on a proforma basis, had Polaris owned TAP for the full year 2016.

Supplemental Data:

Parts, Garments, and Accessories (“PG&A”) sales, excluding Aftermarket segment sales, increased four percent for the 2017 second quarter. The increase was primarily driven by higher ORV and Global Adjacent Markets sales during the quarter.

International sales to customers outside of North America, including PG&A, totaled $191.2 million for the second quarter of 2017, up twelve percent, from the same period in 2016. All regions increased sales double digits percent in the second quarter with all segments showing sales growth during the quarter.

Gross profit increased 23 percent to $350.4 million for the second quarter of 2017 from $284.5 million in the second quarter of 2016. As a percentage of sales, reported gross profit margin was 25.7 percent compared with 25.2 percent of sales for the second quarter of 2016. Gross profit for the second quarter of 2017 includes the negative impact of $8.9 million of Victory Motorcycles wind down costs, $0.1 million in purchase accounting adjustments related to the TAP acquisition and manufacturing network realignment costs of $4.3 million. Excluding these items, adjusted gross profit was $363.6 million, or 26.8 percent of sales. Gross margins on an adjusted basis improved due to significant gross VIP cost savings and positive product mix, somewhat offset by higher promotional costs.

Operating expenses increased 44 percent for the second quarter of 2017 to $270.3 million from $188.0 million in the same period in 2016, which included $2.0 million in Victory wind down costs and $3.7 million of TAP integration expenses. Excluding these costs, operating expenses increased primarily due to the addition of operating expenses from TAP, as well as increased research and development expenses for ongoing product refinement and innovation and legal related costs.

Income from financial services was $19.1 million for the second quarter of 2017, down six percent compared with $20.5 million for the second quarter of 2016. The decrease is attributable to lower income generated from both the wholesale and retail portfolio, offset somewhat by increased income from the sale of extended service contracts.

Non-operating other expense (income), net, was $2.2 million of income for the second quarter of 2017, versus $1.8 million of expense in the second quarter of 2016. The change primarily relates to foreign currency exchange rate movements and the corresponding effects on foreign currency transactions related to the Company’s foreign subsidiaries.

The provision for income taxes for the second quarter of 2017 was $29.9 million, compared with $38.6 million for the second quarter of 2016. The reduction in the provision for income taxes is partly due to the benefit recognized related to the adoption of the new employee share-based accounting standard adopted in the first quarter of 2017.

Financial Position and Cash Flow
Net cash provided by operating activities was $264.0 million for the six months ended June 30, 2017, compared to $348.3 million for the same period in 2016. The decrease in net cash provided by operating activities for the 2017 period was due to the lower net income and the timing of warranty and other accrued expense payments and higher factory inventory. Total debt at June 30, 2017, including capital lease obligations and notes payable, was $1,067.8 million. The Company’s debt-to-total capital ratio was 56 percent at June 30, 2017, compared to 34 percent a year ago due primarily to the financing of the TAP acquisition. Cash and cash equivalents were $127.4 million at June 30, 2017, down from $146.6 million for the same period in 2016.

Share Buyback Activity
During the second quarter of 2017, the Company repurchased and retired 502,000 shares of its common stock for $43.8 million. Year-to-date through June 30, 2017, the Company has repurchased and retired 758,000 shares of its common stock for $65.6 million. As of June 30, 2017, the Company has authorization from its Board of Directors to repurchase up to an additional 6.7 million shares of Polaris common stock.

2017 Business Outlook
The Company has increased its sales guidance and narrowed its earnings per share expected range for the full year 2017 from previously issued guidance. The Company now expects adjusted net income to be in the range of $4.35 to $4.50 per diluted share, compared with adjusted net income of $3.48 per diluted share for 2016. Full year 2017 adjusted sales are anticipated to increase in the range of 12 percent to 14 percent over 2016 sales of $4,516.6 million.

Wind Down of Victory Motorcycles
Polaris announced on January 9, 2017 its intention to wind down its Victory Motorcycles operations. The decision is expected to improve the long-term profitability of Polaris and its global motorcycle business, while materially improving the Company’s competitive position in the industry. The Company will record costs, anticipated to be in the range of $80.0 million to $90.0 million, associated with supporting Victory dealers in selling their remaining inventory, the disposal of factory inventory, tooling, and other physical assets, and the cancellation of various supplier arrangements. Beginning in the first quarter of 2017, these costs are recorded in the 2017 income statement within respective sales, gross profit and operating expenses. These costs are excluded from Polaris’ 2017 sales and earnings guidance on a non-GAAP basis.

Manufacturing Network Realignment
Polaris announced on April 24, 2017 that it was making changes to its network to consolidate production of like products and better leverage plant capacity. Changes include discontinuing manufacturing at its plant in Milford, Iowa, and transferring Milford production to existing Polaris facilities in Huntsville, Ala.; Roseau, Minn.; and Anaheim, Calif. Additionally, the Company plans to transfer fabrication operations for its Pro Armor aftermarket products from its facility in Riverside, Calif., to its recently acquired Transamerican Auto Parts facility in Chula Vista, Calif. Beginning in the second quarter of 2017, costs associated with the manufacturing realignment, anticipated to be in the range of $10.0 million to $15.0 million, are recorded in the income statement within the respective gross profit and operating expenses. These costs are excluded from Polaris’ 2017 sales and earnings guidance on a non-GAAP basis.

Use of Non-GAAP Financial Information
This press release and our related earnings call contain certain non-GAAP financial measures, consisting of “adjusted" sales, gross profits, operating expenses, net income and net income per diluted share as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, to understand the performance of its ongoing operations and how management views the business. Reconciliations of adjusted non-GAAP measures to reported GAAP measures are included in the financial schedules contained in this press release. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.

Second Quarter 2017 Earnings Conference Call and Webcast Presentation
Today at 9:00 AM (CDT) Polaris Industries Inc. will host a conference call and webcast to discuss the 2017 second quarter results released this morning. The call will be hosted by Scott Wine, Chairman and CEO; 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 478-219-0273 internationally. The Conference ID is 45016084.

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.

Polaris Industries Inc. to Host and Webcast Analyst & Investor Meeting

Polaris Industries Inc. also announced today that the executive management team of Polaris will host an Analyst/Investor Meeting in Las Vegas, Nevada in conjunction with its annual dealer meeting. The meeting will be held on Tuesday, July 26, 2017 from 7:30 AM to 11:00 AM PDT. Management will be discussing its plans to improve execution and drive profitable growth, including a first look at several exciting new model year 2018 Polaris products.

Presenters at the Analyst/Investor meeting will include Scott Wine, Chairman and CEO; Ken Pucel, Executive Vice President - Operations, Engineering and Lean; and Mike Speetzen, Executive Vice President - Finance and CFO along with other members of the Polaris executive team. The meeting agenda will be posted on the Polaris Investor Relations website at ir.polaris.com on the Events & Presentations page.

A live webcast of the meeting including audio and a slide presentation will be available by accessing the Polaris Investor Relations website at ir.polaris.com. A replay of the webcast will be available for one week following the event and will be accessible on the same website link.

For more information about the Analyst/Investor Meeting, please contact Peggy James at 763-542-0502 or peggy.james@polaris.com.

About Polaris

Polaris Industries Inc. (NYSE: PII) is a global powersports leader that has been fueling the passion of riders, workers and outdoor enthusiasts for more than 60 years. With annual 2016 sales of $4.5 billion, Polaris’ innovative, high-quality product line-up includes the RANGER^®, RZR^® and Polaris GENERAL™ side-by-side off-road vehicles; the Sportsman^® and Polaris ACE^® all-terrain off-road vehicles; 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, along with a growing aftermarket portfolio, including Transamerican Auto Parts. Polaris’ presence in adjacent markets globally includes military and commercial off-road vehicles, quadricycles, and electric vehicles. Proudly headquartered in Minnesota, Polaris serves more than 100 countries across the globe. Visit www.polaris.com for more information.

Except for historical information contained herein, the matters set forth in this news release, including management’s expectations regarding 2017 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, product offerings, promotional activities and pricing strategies by 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 June 30,					Six months ended June 30,
	2017			2016		2017		2016
Sales	$	1,364,920		$	1,130,777	$	2,518,702	$	2,113,773
Cost of sales	1,014,534			846,274		1,925,825		1,581,692
Gross profit	350,386			284,503		592,877		532,081
Operating expenses:
Selling and marketing	118,531			77,820		232,844		155,061
Research and development	60,753			45,579		112,758		88,688
General and administrative	91,063			64,566		166,577		134,146
Total operating expenses	270,347			187,965		512,179		377,895
Income from financial services	19,143			20,464		39,573		39,960
Operating income	99,182			117,002		120,271		194,146
Non-operating expense:
Interest expense	8,032			3,802		15,946		6,667
Equity in loss of other affiliates	1,336			1,583		3,236		3,641
Other expense (income), net	(2,152		)	1,805		9,456		1,886
Income before income taxes	91,966			109,812		91,633		181,952
Provision for income taxes	29,925			38,646		32,503		63,897
Net income	$	62,041		$	71,166	$	59,130	$	118,055
Net income per share:
Basic	$	0.99		$	1.10	$	0.94	$	1.82
Diluted	$	0.97		$	1.09	$	0.92	$	1.80
Weighted average shares outstanding:
Basic	62,895			64,406		63,012		64,726
Diluted	63,807			65,297		63,970		65,639

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Data)
(Unaudited)
	June 30, 2017		June 30, 2016
Assets
Current Assets:
Cash and cash equivalents	$	127,378	$	146,633
Trade receivables, net	169,314		142,434
Inventories, net	815,990		692,272
Prepaid expenses and other	85,221		64,201
Income taxes receivable	18,976		20,013
Total current assets	1,216,879		1,065,553
Property and equipment, net	736,866		696,241
Investment in finance affiliate	86,552		93,870
Deferred tax assets	192,167		170,955
Goodwill and other intangible assets, net	786,935		273,896
Other long-term assets	95,573		95,129
Total assets	$	3,114,972	$	2,395,644
Liabilities and Shareholders’ Equity
Current Liabilities:
Current portion of debt, capital lease obligations and notes payable	$	2,831	$	4,821
Accounts payable	352,538		348,376
Accrued expenses:
Compensation	116,341		80,348
Warranties	108,403		76,873
Sales promotions and incentives	176,978		138,679
Dealer holdback	116,804		119,833
Other	164,486		103,211
Income taxes payable	9,725		9,728
Total current liabilities	1,048,106		881,869
Long term income taxes payable	27,764		23,864
Capital lease obligations	18,245		19,178
Long-term debt	1,046,721		444,126
Deferred tax liabilities	9,009		12,887
Other long-term liabilities	100,625		78,511
Total liabilities	$	2,250,470	$	1,460,435
Deferred compensation	10,725		11,027
Shareholders’ equity:
Total shareholders’ equity	853,777		924,182
Total liabilities and shareholders’ equity	$	3,114,972	$	2,395,644

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands, Except Per Share Data)
(Unaudited)
	Six months ended June 30,
	2017			2016
Operating Activities:
Net income	$	59,130		$	118,055
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	91,124			78,109
Noncash compensation	31,416			38,382
Noncash income from financial services	(13,328		)	(14,828		)
Deferred income taxes	(4,083		)	(4,876		)
Impairment charges	18,760			—
Other, net	3,236			3,641
Changes in operating assets and liabilities:
Trade receivables	12,370			14,744
Inventories	(59,421		)	27,605
Accounts payable	75,576			45,598
Accrued expenses	6,406			4,910
Income taxes payable/receivable	40,727			28,527
Prepaid expenses and others, net	2,136			8,416
Net cash provided by operating activities	264,049			348,283
Investing Activities:
Purchase of property and equipment	(81,803		)	(117,628		)
Investment in finance affiliate, net	20,785			20,030
Investment in other affiliates	(1,814		)	(6,861		)
Acquisition and disposal of businesses, net of cash acquired	1,645			(54,830		)
Net cash used for investing activities	(61,187		)	(159,289		)
Financing Activities:
Borrowings under debt arrangements / capital lease obligations	932,317			1,202,652
Repayments under debt arrangements / capital lease obligations	(1,010,870		)	(1,198,337		)
Repurchase and retirement of common shares	(65,622		)	(143,876		)
Cash dividends to shareholders	(72,612		)	(70,583		)
Proceeds from stock issuances under employee plans	7,027			11,758
Net cash used for financing activities	(209,760		)	(198,386		)
Impact of currency exchange rates on cash balances	6,951			676
Net increase (decrease) in cash and cash equivalents	53			(8,716		)
Cash and cash equivalents at beginning of period	127,325			155,349
Cash and cash equivalents at end of period	$	127,378		$	146,633

POLARIS INDUSTRIES INC.
RECONCILIATION OF GAAP "REPORTED" TO NON-GAAP "ADJUSTED" RESULTS
THREE MONTHS ENDED JUNE 30, 2017
(In Thousands, Except Per Share Data)
(Unaudited)
	Reported GAAP Measures								2017 Adjustments(4)											Adjusted Measures
	Three months ended June 30,								Three months ended June 30, 2017											Three months ended June 30,
									Victory
	2017			2016			% Change		Wind Down(1)			TAP(2)			Realignment(3)		Total			2017			2016			% Change
Sales
ORV/Snowmobiles	$	845,508		$	799,332		6	%		—			—			—		—		$	845,508		$	799,332		6	%
Motorcycles		197,997			228,392		(13	)%	$	(6,157	)		—			—	$	(6,157	)		191,840			228,392		(16	)%
Global Adj. Markets		97,022			90,959		7	%		—			—			—		—			97,022			90,959		7	%
Aftermarket		224,393			12,094		1,755	%		—			—			—		—			224,393			12,094		1,755	%
Total sales		1,364,920			1,130,777		21	%		(6,157	)		—			—		(6,157	)		1,358,763			1,130,777		20	%
Gross profit
ORV/Snowmobiles		266,150			228,494		16	%		—			—			—		—			266,150			228,494		16	%
% of sales		31.5	%		28.6	%	+289 bps														31.5	%		28.6	%	+289 bps
Motorcycles		21,116			38,915		(46	)%		8,852			—			—		8,852			29,968			38,915		(23	)%
% of sales		10.7	%		17.0	%	-637 bps														15.6	%		17.0	%	-142 bps
Global Adj. Markets		21,216			23,952		(11	)%		—			—			4,303		4,303			25,519			23,952		7	%
% of sales		21.9	%		26.3	%	-447 bps														26.3	%		26.3	%	-3 bps
Aftermarket		59,918			2,982		1,909	%		—			53			—		53			59,971			2,982		1,911	%
% of sales		26.7	%		24.7	%	+205 bps														26.7	%		24.7	%	+207 bps
Corporate		(18,014	)		(9,840	)				—			—			—		—			(18,014	)		(9,840	)
Total gross profit		350,386			284,503		23	%		8,852			53			4,303		13,208			363,595			284,503		28	%
Gross profit %		25.7	%		25.2	%	+51 bps														26.8	%		25.2	%	+160 bps
Operating expenses		270,347			187,965		44	%		(1,999	)		(3,714	)		—		(5,713	)		264,634			187,965		41	%
Other expense, net		(2,152	)		1,805		NM			—			—			—		—			(2,152	)		1,805		NM
Net income	$	62,041		$	71,166		(13	)%	$	6,820		$	2,368		$	2,705	$	11,893		$	73,934		$	71,166		4	%
Diluted EPS	$	0.97		$	1.09		(11	)%	$	0.11		$	0.04		$	0.04	$	0.19		$	1.16		$	1.09		6	%
(1) Represents adjustments for the wind down of Victory Motorcycles, including wholegoods, accessories and apparel
(2) Represents adjustments for TAP acquisition inventory step-up and TAP integration expenses
(3) Represents adjustments for manufacturing network realignment costs
(4) The Company used its estimated statutory tax rate of 37.1% for the non-GAAP adjustments, except for the non-deductible items
2016 Reclassified Results: 2016 sales and gross profit results for ORV/Snowmobiles, Motorcycles and Aftermarket are reclassified for the new Aftermarket reporting segment.

POLARIS INDUSTRIES INC.
RECONCILIATION OF GAAP "REPORTED" TO NON-GAAP "ADJUSTED" RESULTS
SIX MONTHS ENDED JUNE 30, 2017
(In Thousands, Except Per Share Data)
(Unaudited)
	Reported GAAP Measures								2017 Adjustments(3)											Adjusted Measures
	Six months ended June 30,								Six months ended June 30, 2017											Six months ended June 30,
									Victory
	2017			2016			% Change		Wind Down(1)			TAP(2)			Realignment(3)		Total			2017			2016			% Change
Sales
ORV/Snowmobiles	$	1,569,611		$	1,507,435		4	%		—			—			—		—		$	1,569,611		$	1,507,435		4	%
Motorcycles		318,286			413,659		(23	)%	$	(1,053	)		—			—	$	(1,053	)		317,233			413,659		(23	)%
Global Adj. Markets		188,577			165,068		14	%		—			—			—		—			188,577			165,068		14	%
Aftermarket		442,228			27,611		1,502	%		—			—			—		—			442,228			27,611		1,502	%
Total sales		2,518,702			2,113,773		19	%		(1,053	)		—			—		(1,053	)		2,517,649			2,113,773		19	%
Gross profit
ORV/Snowmobiles		479,109			434,481		10	%		—			—			—		—			479,109			434,481		10	%
% of sales		30.5	%		28.8	%	+170 bps														30.5	%		28.8	%	+170 bps
Motorcycles		1,235			66,174		(98	)%		47,415			—			—		47,415			48,650			66,174		(26	)%
% of sales		0.4	%		16.0	%	-1,561 bps														15.3	%		16.0	%	-66 bps
Global Adj. Markets		49,314			44,335		11	%		—			—			4,303		4,303			53,617			44,335		21	%
% of sales		26.2	%		26.9	%	-71 bps														28.4	%		26.9	%	+157 bps
Aftermarket		101,482			7,681		1,221	%		—			12,950			—		12,950			114,432			7,681		1,390	%
% of sales		22.9	%		27.8	%	-487 bps														25.9	%		27.8	%	-194 bps
Corporate		(38,263	)		(20,590	)				—			—			—		—			(38,263	)		(20,590	)
Total gross profit		592,877			532,081		11	%		47,415			12,950			4,303		64,668			657,545			532,081		24	%
Gross profit %		23.5	%		25.2	%	-163 bps														26.1	%		25.2	%	+95 bps
Operating expenses		512,179			377,895		36	%		(8,016	)		(7,017	)		—		(15,033	)		497,146			377,895		32	%
Other expense, net		9,456			1,886		401	%		(13,000	)		—			—		(13,000	)		(3,544	)		1,886		NM
Net income	$	59,130		$	118,055		(50	)%	$	47,841		$	12,551		$	2,705	$	63,097		$	122,227		$	118,055		4	%
Diluted EPS	$	0.92		$	1.80		(49	)%	$	0.75		$	0.20		$	0.04	$	0.99		$	1.91		$	1.80		6	%
(1) Represents adjustments for the wind down of Victory Motorcycles, including wholegoods, accessories and apparel
(2) Represents adjustments for TAP acquisition inventory step-up and TAP integration expenses
(3) Represents adjustments for manufacturing network realignment costs
(4) The Company used its estimated statutory tax rate of 37.1% for the non-GAAP adjustments, except for the non-deductible items
2016 Reclassified Results: 2016 sales and gross profit results for ORV/Snowmobiles, Motorcycles and Aftermarket are reclassified for the new Aftermarket reporting segment.

POLARIS INDUSTRIES INC.

NON-GAAP ADJUSTMENTS TO FULL YEAR 2017 GUIDANCE

2017 Adjusted Guidance: 2017 guidance excludes the pre-tax effect of TAP inventory step-up purchase accounting of approx. $15 million, acquisition integration costs of approx. $15 million, manufacturing network realignment costs of approx. $10 million to $15 million and the impacts associated with the Victory wind down which is estimated to be in the range of $80 million to $90 million. 2017 adjusted sales guidance excludes any Victory wholegood, accessories and apparel sales and corresponding promotional costs as the Company is in the process of exiting the brand. The Company has not provided reconciliations of guidance for adjusted diluted net income per share, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include costs associated with the Victory wind down that are difficult to predict in advance in order to include in a GAAP estimate.

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EX-99.2

Exhibit 99.2

 

 Second Quarter 2017 Earnings Results  July 20, 2017  POLARIS INDUSTRIES INC.  

 SAFE HARBOR & NON-GAAP MEASURES  2  Q2'17 Earnings  Except for historical information contained herein, the matters set forth in this presentation, including management’s expectations regarding 2017 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, product offerings, promotional activities and pricing strategies by 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. 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.This presentation contains certain non-GAAP financial measures, consisting of “adjusted” sales, gross profit, operating expenses, net income and net income per diluted share as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, to understand the performance of its ongoing operations and how management views the business. Reconciliations of adjusted non-GAAP measures to reported GAAP measures for Q2 are included on slide 3 and Q2 year-to-date are included in the appendix contained in this presentation. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.    

 Q2 NON-GAAP DISCLOSURE  3  Q2'17 Earnings  Reconciliation of GAAP "Reported" Results to Non-GAAP "Adjusted" Results (In Thousands, Except Per Share Data; Unaudited)  Key Definitions: Throughout this presentation, the word “Adjusted” is used to refer to GAAP results excluding: TAP inventory step-up purchase accounting, TAP integration expenses, impacts associated with the Victory Motorcycles® wind down and manufacturing network realignment costs.Adjustments: (1) Represents adjustments for the wind down of Victory Motorcycles, including wholegoods, accessories and apparel (2) Represents adjustments for TAP acquisition inventory step-up and TAP integration expenses (3) Represents adjustments for manufacturing network realignment costs (4) The Company used its estimated statutory tax rate of 37.1% for the non-GAAP adjustments, except for the non-deductible items2016 Reclassified Results: 2016 sales and gross profit results for ORV/Snowmobiles, Motorcycles and Aftermarket are reclassified for the new Aftermarket reporting segment.    Reported GAAP Measures  Reported GAAP Measures                2017 Adjustments(4)  2017 Adjustments(4)                        Adjusted Measures  Adjusted Measures                  Three months ended June 30,  Three months ended June 30,                Three months ended June 30,  Three months ended June 30,                        Three months ended June 30,  Three months ended June 30,                  2017  2017    2016  2016    % Change      VictoryWind Down(1)  VictoryWind Down(1)    TAP(2)  TAP(2)    Realignment(3)  Realignment(3)    Total  Total      2017  2017    2016  2016    % Change      Sales                                                                ORV/Snowmobiles  $  845,508    $  799,332    6  %      —      —      —      —      $  845,508    $  799,332    6  %    Motorcycles    197,997      228,392    (13  )%    $  (6,157  )    —      —    $  (6,157  )      191,840      228,392    (16  )%    Global Adj. Markets    97,022      90,959    7  %      —      —      —      —        97,022      90,959    7  %    Aftermarket    224,393      12,094    1,755  %      —      —      —      —        224,393      12,094    1,755  %    Total sales    1,364,920      1,130,777    21  %      (6,157  )    —      —      (6,157  )      1,358,763      1,130,777    20  %    Gross profit                                                                ORV/Snowmobiles    266,150      228,494    16  %      —      —      —      —        266,150      228,494    16  %    % of sales    31.5  %    28.6  %  +289 bps                                  31.5  %    28.6  %  +289 bps      Motorcycles    21,116      38,915    (46  )%      8,852      —      —      8,852        29,968      38,915    (23  )%    % of sales    10.7  %    17.0  %  -637 bps                                  15.6  %    17.0  %  -142 bps      Global Adj. Markets    21,216      23,952    (11  )%      —      —      4,303      4,303        25,519      23,952    7  %    % of sales    21.9  %    26.3  %  -447 bps                                  26.3  %    26.3  %  -3 bps      Aftermarket    59,918      2,982    1,909  %      —      53      —      53        59,971      2,982    1,911  %    % of sales    26.7  %    24.7  %  +205 bps                                  26.7  %    24.7  %  +207 bps      Corporate    (18,014  )    (9,840  )          —      —      —      —        (18,014  )    (9,840  )        Total gross profit    350,386      284,503    23  %      8,852      53      4,303      13,208        363,595      284,503    28  %    Gross profit %    25.7  %    25.2  %  +51 bps                                  26.8  %    25.2  %  +160 bps      Operating expenses    270,347      187,965    44  %      (1,999  )    (3,714  )    —      (5,713  )      264,634      187,965    41  %    Other expense (income), net    (2,152  )    1,805    NM        —      —      —      —        (2,152  )    1,805    NM                                                                      Net income  $  62,041    $  71,166    (13  )%    $  6,820    $  2,368    $  2,705    $  11,893      $  73,934    $  71,166    4  %    Diluted EPS  $  0.97    $  1.09    (11  )%    $  0.11    $  0.04    $  0.04    $  0.19      $  1.16    $  1.09    6  %                                                                   

 Scott W. Wine, Chairman & CEO  Second Quarter 2017 Earnings Results  July 20, 2017     POLARIS INDUSTRIES INC.  

 Q2 SUMMARY  5  Q2'17 Earnings  Q2 Slightly Ahead of Plan – Raising Sales Guidance and Lower End of EPS Guidance Range  Foundational improvements gaining momentumOperational execution offset impact of major headwinds:Competitive ORV industryORV retail sales building momentum SxS retail up slightly in Q2; RZR sales up for first time in 6 quarters; ORV share remains challengedIndian Motorcycle retail up 17% - share gains acceleratingSlingshot weakness continues; Victory wind down progressing wellInternational and PG&A outperformingAdjacent markets / Aftermarket business growth on planTAP integration on track   * See GAAP/Non-GAAP Reconciliation on Slide #3 

 NORTH AMERICAN POWERSPORTS RETAIL SALES  Polaris N.A. retail down 3% for Q2 2017 vs. Q2 2016Indian Motorcycle retail was up 17% - two new motorcycles launchedORV retail down, but improved sequentiallyNorth American Industry up slightlySxS growth driven by new products; ATVs weakOil & gas/ag industry challenges ongoing   (# vehicle units)  POLARIS  INDUSTRY  Off-Road Vehicles   low-single digits %   mid-single digits % (estimated)   Side-by-Sides ATVs   low-single digits % high-single digits %    Motorcycles   low-single digits %   mid-single digits % (900cc & above)   Indian Slingshot   high-teens % significantly    Snowmobiles(season-end Mar’17)  (off-season)  (off-season)        SxS Retail Turned Positive After 6 Quarter Decline Driven by RZR  Q2’17 Retail Sales by Business (vs. Q2’16)  Polaris Retail Sales  Q2'17 Earnings  6  Year-Over-Year Retail % Change (units) 

 Polaris Q2 2017 N.A. dealer inventory down 6% vs. Q2 2016ORV down 6%, RZR down double digits %Motorcycles up as expected, new productsSxS RFM implementation to start by year-endDealer inventory at year-end expected flat to prior year  Healthy Dealer Inventory Levels; Working to Improve On-time Delivery  Q2 Total N.A. Dealer Inventory  Polaris N.A. Total Dealer Inventory  NORTH AMERICAN DEALER INVENTORY  -6%  Q2'17 Earnings  7  2017 YE expectations ~flat vs. LY(unchanged)  -6%  Year-over-year % Change in Units    -7%  +2%  -2%  +1%  -10%vs. 2015  -8%vs. 2015  -8%  – – – 2017 expectations        

 CRUSHING THE COMPETITIONWON OVER 3/4 OF ALL RACES33 Championship Wins106 Podium Finishes  RACING  DOMINATING THE FLAT TRACK9 Championship Wins out of 10 Races23 Podium Finishes out of 30  Racing Success a Reflection of Product Expertise  Indian Motorcycle  Polaris RZR  Q2'17 Earnings  8 

 TRANSAMERICAN AUTO PARTS (TAP) UPDATE  9  Q2'17 Earnings  Acquisition Performing as Expected  $209 million in sales in Q2; $411 million year-to-dateOperating performance on plan, integration progressing as expectedOpened four new 4Wheel Parts Stores year-to-dateCost synergies of ~$20 million by 2019; slightly ahead of planFull-year sales expectation of $775 to $800 million (unchanged) 

 Mike Speetzen, EVP Finance & CFO  Second Quarter 2017 Earnings Results  July 20, 2017     POLARIS INDUSTRIES INC.  

 Q2 2017 Sales and Income  Q2 reported sales were $1,365 million, up 21% from Q2 2016; Reported net income was $62 million, down 13% from prior yearAdjusted* sales were up 20% finishing ahead of expectationsAcquisition of Transamerican Auto Parts (TAP) added $209 million of sales in Q2 2017Q2 2016 includes Victory sales of $54 million ORV/Snowmobile sales up 6%; Motorcycles down 13% (up 10% excluding Victory); Global Adjacent Markets up 7%; Aftermarket up significantly (TAP)Adjusted* earnings reported at $1.16 per diluted share, up 6% from prior year (GAAP earnings per share at $0.97, down 11%)Adjusted* gross profit margin up 160 bps:  VIP,  product mix,  promo (GAAP gross profit margin up 51 bps)  Results Slightly Ahead of Expectations on an Adjusted* Basis  Q2 2017 Net Income  Q2 2017 Sales  ($ millions)  ($ millions)  Q2'17 Earnings  11   * See GAAP/Non-GAAP Reconciliation on Slide #3 

 Sales Guidance by Segment (1)   Adjusted* Earnings Per Share Guidance  Q2'17 Earnings  Total Company Adjusted* Sales Guidance  Full Year Sales Guidance Increased & EPS Guidance Narrowed  2017 FULL YEAR SALES GUIDANCE  Powersports market improving globallyOrganic** revenue expectations flat to +2%TAP FY’17 = incremental $665 to $690, unchangedVictory wind down / FX = ~($175)  + $120M non-recurring warranty, legal and other recall related costs+ TAP accretive in 2017 approx. 25¢ to 30¢+ VIP positive+ Lower tax rate+ Share count– Higher R&D expense– Higher promotional costs– Higher variable compensation costs– Negative FX impact  ($ millions)  +12% to +14%$5,050 to $5,150(increased)      +25% to +29%$4.35 to $4.50(narrowed)   *See appendix for discussion regarding non-GAAP adjustments excluded from 2017 guidance**Organic revenue excludes TAP, Victory sales and the effects of FX  ORV/SNOW APPROX. FLAT  MOTORCYCLES HIGH-TEENS % (Victory included in 2016 #’s)  MID-SINGLE DIGITS %(2) (Victory excluded in 2016 #’s)  ADJACENT MARKETS MID-SINGLE DIGITS %  AFTERMARKET SIGNIFICANTLY  (1) Includes respective PG&A. 2016 sales, for comparison purposes, have been reclassified to account for the new Aftermarket segment which included aftermarket brands previously reported in their respective segments(2) On a comparable basis, motorcycle expectations is “Up mid-single digits %” in 2017 after adjusting for Victory wholegood, accessories and apparel sales reported in 2016  12 

 GROSS PROFIT MARGIN GUIDANCE  Adjusted* Gross Profit 2017 Guidance  Gross Profit Q2 2017  GM Growth Drivers+ VIP+ One-time warranty+ Acquisitions– Quality feature adds – Promos / Incentives– FX  Q2 2017 Gross Margin Improvement Driven Primarily by VIP & Product Mix  Q2'17 Earnings  13  Increase up to ~180 bps  KEY:  Improvement  Headwind  Neutral    Adjusted* GM by Segment  Q2 2016  Q2 2017  ORV/Snow  28.6%  31.5%  Motorcycles*  17.0%  15.6%  Adjacent Markets*  26.3%  26.3%  Aftermarket*  24.7%  26.7%  Adjusted* GM by Segment  2017Expectations    ORV/Snow        Motorcycles        Adjacent Markets       Aftermarket         *See appendix for discussion regarding non-GAAP adjustments excluded from 2017 guidance  GM Growth Drivers+ Product Mix+ VIP+ Acquisitions– Promos / Incentives 

   OFF-ROAD VEHICLES (ORV) / SNOWMOBILES  Q2 2017 ORV/Snow Segment Sales  ORV up 6% in Q2 2017 vs. Q2 2016Growth in all product linesPG&A up 5%ORV average selling price up 3% in Q2’172017 Guidance: Approx. Flat (increased)PII ORV improving worldwidePromotional levels remain elevated  Regaining Footing as Leading Powersports Manufacturer  Q2'17 Earnings  14  6%$846  ORV  PG&A  Snow  $799  ORV  PG&A  Snow   5%  22%   6%    % ∆  ($ millions)  (1) 2016 sales, for comparison purposes, have been reclassified to account for the new Aftermarket segment which included aftermarket brands previously reported in their respective segments  Reclassified(1)   THE MOSTEXPANSIVELINE-UP OF CUSTOMIZABLEOFF-ROADVEHICLESIN THEINDUSTRY 

  4%  17%     1%  90%   8%    Reported sales down 13%; Adjusted* sales down 16%Motorcycles up 10% excluding $54M of Victory sales reported in 2016Indian shipments up; Slingshot sales lowerAverage selling price, excl. Victory, was down 1% in Q22017 Guidance: Down high-teens %** (lowered)On a comparable basis, motorcycle expectations is “Up mid-single digits %” in 2017 after adjusting for Victory wholegood, apparel and accessories sales reported in 2016Overall motorcycle market remains weak  % ∆  MOTORCYCLES  Q2 2017 Motorcycles Segment Sales  Continued Market Share Gains for Indian Motorcycle; Momentum Accelerating   Q2'17 Earnings  15  16%$192  PG&A  $228  PG&A  IndianSlingshot  IndianSlingshot  ($ millions)  Victory   * See GAAP/Non-GAAP Reconciliation on Slide #3** See appendix for 2017 guidance adjustments(1) 2016 sales, for comparison purposes, have been reclassified to account for the new Aftermarket segment which included aftermarket brands previously reported in their respective segments  Reclassified(1)   PG&A  IndianSlingshot  % ∆  13%$198  Victory 

 13%   5%    GLOBAL ADJACENT MARKETS (GAM)  Q2 2017 GAM Segment Sales  GAM 7% due to Aixam and Goupil strong performance; PG&AAverage selling price for GAM was down 1% in Q2’172017 Sales Guidance: Up mid-single digits % (increased)  Aixam and Goupil Driving Increase in Q2  Q2'17 Earnings  16  7%$97  PG&A  $91  PG&A  % ∆  W&T /Defense  W&T /Defense  ($ millions)  Aixam Ambiance 3 Quadricycle 

 AFTERMARKET  Q2 2017 Aftermarket Segment Sales  TAP added $209 million to Q2 salesIntegration on plan, moving Pro Armor® production to TAP facility2017 Sales Guidance: Up significantly from TAP sales (unchanged)  TAP Performing Well; Integration on Track  Q2'17 Earnings  17  ($ millions)   Significantly  $209  Other AftermarketBrands  Reclassified*  *2016 sales, for comparison purposes, have been reclassified to account for the new Aftermarket segment which included aftermarket brands previously reported in their respective segments    $12  First Minnesota StoreGrand Opening July 22nd Brooklyn Park, MN 

 2017 POLARIS FINANCIAL POSITION  18  Q2'17 Earnings  Capital Summary June 2017  Cash Drivers      Variance toJune 2016  Cash  $ 127  -13%  Debt /Capital Lease Obligations  $1,068  +128%  Shareholders’ Equity  $ 854  -8%  Total Capital  $1,922  +38%  Debt to Total Capital   56%  -22 % points  2015Operating cash flow down, as expectedFactory inventory up sequentially from Q1, new model year introductionCap Ex expected to be lower than 2016 (unchanged)Operating cash flow expected to be down significantly – timing of accrual payments, Victory wind down and manufacturing realignment  Operating Cash Flow  Financial Position Unchanged – Solid    ($ millions)  ($ millions)  ($ millions)  Q2 Year-to-date 2017 Summary  FY 2017 Expectations  Down significantly   Expectations  +$264  -$73  -$82  -$79  -$66  +$36 

 Retail Credit  Wholesale Credit PA Receivables  19  Q2'17 Earnings  Income from Financial Services  Portfolio Remains Healthy  INCOME FROM FINANCIAL SERVICES  Polaris Acceptance (PA) receivables down, trending with dealer inventoryQ2 income from financial services down – lower wholesale and retail incomeFY 2017 Guidance: Income from financial services down about 10% (unchanged)  $20  6%$19  9%$1,078  $1,180  ($ millions)  ($ millions)  Approval Rate  Penetration Rate  WholesaleCredit  Retail Financing  Retail Financing 

 Scott W. Wine, Chairman & CEO  Second Quarter 2017 Earnings Results  July 20, 2017     POLARIS INDUSTRIES INC.  

 21  Q2'17 Earnings  CLOSING COMMENTS  2nd Half Performance Expected Up Significantly on a Year-over-year Basis   Powersports market outlook improved globally; remains highly competitive Polaris ORV business, particularly SxS, regaining footingIndian Motorcycle market share gains continueSafety and Quality processes/results improvingCost & Productivity initiatives gaining traction; VIP savings acceleratingDealer show will kickoff 2nd half: product news, quality, dealer relations  

 Thank You  Questions?  POLARIS INDUSTRIES INC.  

 APPENDIX    Q2 2017 SUPPLEMENTAL SALES PERFORMANCE (PG&A / INTERNATIONAL)Q2 YEAR-TO-DATE NON-GAAP DISCLOSURE2017 GUIDANCE ADJUSTMENTS2017 OTHER FULL YEAR EXPECTATIONS 

 International**  Core Parts, Garments & Accessories (PG&A)*  24  Q2'17 Earnings  Q2 2017 SUPPLEMENTAL SALES PERFORMANCE  Motorcycles  Global Adjacent Markets (GAM)  2% Snowmobiles  Motorcycles  Global Adjacent Markets (GAM)  Apparel  LatinAmerica  20%  11%  11%  19%   9%  11%  Q2 Sales 4% to 193 Million  Q2 Sales 12% to $191 Million   ∆ from Q2'16  ∆ from Q2'16  *Based on GAAP reporting; does not include Aftermarket  **Based on GAAP reporting 

 Q2 YEAR-TO-DATE NON-GAAP DISCLOSURE  25  Q2'17 Earnings  Reconciliation of GAAP "Reported" Results to Non-GAAP "Adjusted" Results (In Thousands, Except Per Share Data; Unaudited)    Reported GAAP Measures  Reported GAAP Measures                2017 Adjustments(3)  2017 Adjustments(3)                        Adjusted Measures  Adjusted Measures                  Six months ended June 30,  Six months ended June 30,                Six months ended June 30,  Six months ended June 30,                        Six months ended June 30,  Six months ended June 30,                  2017  2017    2016  2016    % Change      VictoryWind Down(1)  VictoryWind Down(1)    TAP(2)  TAP(2)    Realignment(3)  Realignment(3)    Total  Total      2017  2017    2016  2016    % Change      Sales                                                                ORV/Snowmobiles  $  1,569,611    $  1,507,435    4  %      —      —      —      —      $  1,569,611    $  1,507,435    4  %    Motorcycles    318,286      413,659    (23  )%    $  (1,053  )    —      —    $  (1,053  )      317,233      413,659    (23  )%    Global Adj. Markets    188,577      165,068    14  %      —      —      —      —        188,577      165,068    14  %    Aftermarket    442,228      27,611    1,502  %      —      —      —      —        442,228      27,611    1,502  %    Total sales    2,518,702      2,113,773    19  %      (1,053  )    —      —      (1,053  )      2,517,649      2,113,773    19  %    Gross profit                                                                ORV/Snowmobiles    479,109      434,481    10  %      —      —      —      —        479,109      434,481    10  %    % of sales    30.5  %    28.8  %  +170 bps                                  30.5  %    28.8  %  +170 bps      Motorcycles    1,235      66,174    (98  )%      47,415      —      —      47,415        48,650      66,174    (26  )%    % of sales    0.4  %    16.0  %  -1,561 bps                                  15.3  %    16.0  %  -66 bps      Global Adj. Markets    49,314      44,335    11  %      —      —      4,303      4,303        53,617      44,335    21  %    % of sales    26.2  %    26.9  %  -71 bps                                  28.4  %    26.9  %  +157 bps      Aftermarket    101,482      7,681    1,221  %      —      12,950      —      12,950        114,432      7,681    1,390  %    % of sales    22.9  %    27.8  %  -487 bps                                  25.9  %    27.8  %  -194 bps      Corporate    (38,263  )    (20,590  )          —      —      —      —        (38,263  )    (20,590  )        Total gross profit    592,877      532,081    11  %      47,415      12,950      4,303      64,668        657,545      532,081    24  %    Gross profit %    23.5  %    25.2  %  -163 bps                                  26.1  %    25.2  %  +95 bps      Operating expenses    512,179      377,895    36  %      (8,016  )    (7,017  )    —      (15,033  )      497,146      377,895    32  %    Other expense (income), net    9,456      1,886    401  %      (13,000  )    —      —      (13,000  )      (3,544  )    1,886    NM                                                                      Net income  $  59,130    $  118,055    (50  )%    $  47,841    $  12,551    $  2,705    $  63,097      $  122,227    $  118,055    4  %    Diluted EPS  $  0.92    $  1.80    (49  )%    $  0.75    $  0.20    $  0.04    $  0.99      $  1.91    $  1.80    6  %                                                                    Key Definitions: Throughout this presentation, the word “Adjusted” is used to refer to GAAP results excluding: TAP inventory step-up purchase accounting, TAP integration expenses, impacts associated with the Victory Motorcycles® wind down and manufacturing network realignment costs.Adjustments: (1) Represents adjustments for the wind down of Victory Motorcycles, including wholegoods, accessories and apparel (2) Represents adjustments for TAP acquisition inventory step-up and TAP integration expenses (3) Represents adjustments for manufacturing network realignment costs (4) The Company used its estimated statutory tax rate of 37.1% for the non-GAAP adjustments, except for the non-deductible items2016 Reclassified Results: 2016 sales and gross profit results for ORV/Snowmobiles, Motorcycles and Aftermarket are reclassified for the new Aftermarket reporting segment. 

 2017 GUIDANCE ADJUSTMENTS  26  Q2'17 Earnings    2017 guidance excludes the pre-tax effect of TAP inventory step-up purchase accounting of approx. $15 million, acquisition integration costs of approx. $15 million, manufacturing network realignment costs of approx. $10 million to $15 million and the impacts associated with the Victory wind down which is estimated to be in the range of $80 million to $90 million. 2017 adjusted sales guidance excludes any Victory wholegood, accessories and apparel sales and corresponding promotional costs as the Company is in the process of exiting the brand. The Company has not provided reconciliations of guidance for adjusted diluted net income per share, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include costs associated with the Victory wind down that are difficult to predict in advance in order to include in a GAAP estimate. 

 2017 OTHER FULL YEAR EXPECTATIONS  27  Q2'17 Earnings    Gross Margins: increase up to 180 bps (unchanged)Adjusted operating expenses: increase in the 60 to 70 bps range, as a percent of sales (lowered) Increased R&D – up high-teens % excluding TAP; quality & innovationHigher variable compensation costsTAP operating expenseIncome from financial services: down ~10% due to lower dealer inventory levels and lower retail credit income (unchanged)Interest expense: more than double due to TAP acquisition funding (unchanged)Income taxes: approximately 34.0% of pretax profits (lowered)Supplemental:International sales: up over 2016 (increased)PG&A: up mid-single digits % (increased)Diluted shares outstanding: down 1% to 2% (improved) 

 28  Q2'17 Earnings