8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549
FORM 8-KCURRENT REPORTPursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934Date of Report (Date of earliest event reported): January 30, 2018

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 January 30, 2018, Polaris Industries Inc. (the “Company”) issued a press release announcing the Company’s fourth quarter and full year 2017 financial results for the reporting period ended December 31, 2017.  On January 30, 2018, 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 February 13, 2018 by dialing 855-859-2056 in the U.S. and Canada, or 404-537-3406 for international calls and entering passcode 5877616, 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 January 30, 2018 of Polaris Industries Inc.
99.2	Presentation materials dated January 30, 2018 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:	January 30, 2018
		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 January 30, 2018 of Polaris Industries Inc.
99.2	Presentation materials dated January 30, 2018 of Polaris Industries Inc.

EX-99.1

Exhibit 99.1

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

Polaris Reports 2017 Fourth Quarter and Full Year Results

• Reported sales for the fourth quarter of 2017 increased 18% to a record $1,431 million; adjusted sales were $1,430 million, up 17%, a majority from organic growth
• Fourth quarter2017 reported net income was $0.49 per diluted share; adjusted net income for the same period was $1.47 per diluted share, in-line with expectations and up 25% over the prior year
• Full year 2017 reported net income was $2.69 per diluted share; adjusted net income for the same period was $4.85 per diluted share, in-line with previously issued guidance. Reported and adjusted sales for the full year of 2017 increased 20% to $5,428 million
• Total 2017 dealer inventory was up 1% year-over-year; ORV dealer inventory was down 6%
• Polaris announced guidance for the full year 2018. Adjusted net income is expected to be in the range of $6.00 to $6.20 per diluted share with adjusted sales for the full year 2018 expected in the range of up 3% to 5%
• Polaris updated its long-term strategic goals and objectives emphasizing top-line growth and margin expansion. Sales are anticipated to grow at greater than 5% compounded annually and net income is expected to increase at a greater than 15% compounded annual growth rate through 2022 on an adjusted basis

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)--January 30, 2018--Polaris Industries Inc. (NYSE: PII) today reported record fourth quarter 2017 sales of $1,431 million, up 18 percent from $1,218 million for the fourth quarter of 2016. Adjusted sales for the fourth quarter of 2017 were $1,430 million, up 17 percent from the prior year period. The Company reported fourth quarter 2017 net income of $31 million, or $0.49 per diluted share, compared with net income of $63 million, or $0.97 per diluted share, for the 2016 fourth quarter. The reported net income includes costs related to the wind down of Victory^® Motorcycles, Transamerican Auto Parts ("TAP") integration costs, restructuring and realignment costs and impacts from U.S. tax reform. Adjusted net income for the quarter ended December 31, 2017, excluding these costs, was $95 million, or $1.47 per diluted share.

“I am proud of the Polaris team and excited to see their dedication and hard work pay off as we returned the company to sustainable profitable growth in 2017. Indian Motorcycles^® massively outperformed the Motorcycle industry, building on its existing momentum with a flood of product news and a very successful year on the race track. We accelerated North American demand for side-by-sides throughout the year led by strong retail sales of RANGER^® and Polaris GENERAL™ along with increased international sales growth in all regions outside North America. Additionally, we made significant investments and improvements in our people, processes, product innovation and quality, which led to notable execution improvements in our Off-Road Vehicle business, marked progress on the TAP integration, and a substantial upgrade of our quality control systems and infrastructure,” commented Scott Wine, Chairman and Chief Executive Officer of Polaris Industries.

“Between strong demand and our intense focus on delivering high quality products, in the fourth quarter we experienced some delays in getting certain model year 2018 Off-Road vehicles into showrooms, which ultimately affected our North American retail sales velocity. We are implementing corrective actions to ensure our dealers have the appropriate mix of inventory on hand as we approach the upcoming peak retail selling season," continued Wine.

“Looking forward, I could not be more excited about the momentum we have built. Dealer inventory is approaching optimal levels, our delivery issues are being addressed, and our product innovation, which continues to resonate well with consumers, will receive an added boost from increased engineering spend. Furthermore, today we are unveiling our revised strategic framework, reaffirming our dedication to bolstering our market leadership position through a focus on superior productivity, safety, quality, and customer service. These updated goals and objectives emphasize top-line growth and margin expansion, which translates to greater than five percent compound annual sales growth and 15 percent compound annual net income growth over the next five years. The entire Polaris team is energized and committed to being the Best in Powersports Plus, growing adjacencies and global markets while simultaneously improving the safety and quality of our products. Ultimately we are striving to build a productivity powerhouse, driving accelerated earnings leverage and asset utilization, that delivers consistently increasing value for our stakeholders,” Wine concluded.

Off-Road Vehicle (“ORV”) and Snowmobile segment sales, including their respective PG&A related sales, were $994 million for the fourth quarter of 2017, up 13 percent over $881 million for the fourth quarter of 2016 driven primarily by improved side-by-side shipments. PG&A sales for ORV and Snowmobiles combined, increased nine percent in the 2017 fourth quarter compared to the fourth quarter last year. Gross profit increased 11 percent to $279 million, or 28.0 percent of sales, in the fourth quarter of 2017, compared to $252 million, or 28.6 percent of sales, in the fourth quarter of 2016. Gross profit percentage decreased primarily due to higher warranty and negative product mix offset somewhat by lower promotional costs.

ORV wholegood sales for the fourth quarter of 2017 increased 14 percent primarily driven by strong RZR^® and RANGER shipments. Polaris North American ORV unit retail sales for the fourth quarter of 2017 were down low-single digits percent from the 2016 fourth quarter, with side-by-side vehicles down low-single digits percent and ATVs flat. The North American ORV industry was up low-single digits percent compared to the fourth quarter last year. ORV dealer inventory was down 6 percent in the 2017 fourth quarter compared to the same period last year.

Snowmobile wholegood sales in the fourth quarter of 2017 increased 11 percent to $131 million, due to the timing of shipments. Polaris snowmobile retail sales were down low double digits percent during the fourth quarter due to low snowfall levels across the snowbelt regions in North America.

Motorcycle segment sales, including PG&A, totaled $103 million, a decrease of two percent compared to $104 million reported in the fourth quarter of 2016 which included $25 million of Victory Motorcycle wholegood, accessory and apparel sales. Indian Motorcycles wholegood sales increased in the high-single digit percent range in the fourth quarter, while Slingshot^® sales more than doubled. Gross profit for the fourth quarter of 2017 was $5 million compared to $1 million in the fourth quarter of 2016. Adjusted for the Victory Motorcycles wind down costs of $3 million, motorcycle gross profit was $8 million, up from the fourth quarter last year due to higher sales volume for both Indian Motorcycles and Slingshot and lower warranty costs.

North American consumer retail demand for the Polaris motorcycle segment, including Indian Motorcycle and Slingshot, increased about 30 percent during the 2017 fourth quarter. Indian Motorcycle retail sales increased about 17 percent, with both heavyweight and mid-sized motorcycles increasing at similar mid-teens percent levels. Indian Motorcycle continued to gain significant market share for the 2017 fourth quarter and full year on a year-over-year basis. Slingshot's retail sales were up significantly due to improved product availability compared to the fourth quarter last year. Motorcycle industry retail sales, 900cc and above, were down high-single digits percent in the 2017 fourth quarter.

Global Adjacent Markets segment sales along with its PG&A related sales, increased 19 percent to $117 million in the 2017 fourth quarter compared to $98 million in the 2016 fourth quarter. Reported gross profit increased two percent to $30 million, or 25.4 percent of sales, in the fourth quarter of 2017, compared to $29 million, or 29.5 percent of sales, in the fourth quarter of 2016. Adjusted gross profit, excluding the manufacturing realignment costs, increased four percent to $30 million, or 25.8 percent of sales for the fourth quarter 2017. Commercial/Government/Defense group wholegood sales were up 24 percent during the fourth quarter of 2017 primarily due to an increase in sales in the Company's Goupil light-utility business and military sales.

Aftermarket segment sales, which include Transamerican Auto Parts ("TAP"), along with the Company's other aftermarket brands of Klim^®, Kolpin^®, Pro Armor^®, Trail Tech^® and 509^®, increased 62 percent to $218 million in the 2017 fourth quarter compared to $134 million in the 2016 fourth quarter. TAP sales increased $83 million to $192 million in the fourth quarter of 2017. Gross profit increased significantly to $61 million, or 27.9 percent of sales in fourth quarter of 2017, compared to $28 million, or 20.9 percent of sales, in the fourth quarter of 2016. Adjusted gross profit in Q4 2016 was $37 million, or 27.4 percent of sales, adjusted for a $9 million TAP inventory step-up charge. Sales and gross profit dollars were up primarily due to the addition of TAP for the entire fourth quarter of 2017 as TAP was acquired in November of 2016. TAP sales grew four percent in the fourth quarter of 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 eight percent for the 2017 fourth quarter. Excluding Victory Motorcycles, all segments and categories increased sales during the quarter.

International sales to customers outside of North America, including PG&A, totaled $211 million for the fourth quarter of 2017, up 18 percent, from the same period in 2016. In the fourth quarter, sales in EMEA grew low-twenties percent, Asia Pacific increased high-single digits percent, and Latin America sales rose mid-teens percent.

Gross profit increased 18 percent to $368 million for the fourth quarter of 2017 from $313 million in the fourth quarter of 2016. As a percentage of sales, reported gross profit margin was 25.7 percent of sales for the fourth quarter of both 2017 and 2016. Gross profit for the fourth quarter of 2017 includes the negative impact of $3 million of Victory Motorcycles wind down costs and $2 million of realignment costs. Excluding these items, fourth quarter 2017 adjusted gross profit was $373 million, or 26.1 percent of sales. For the fourth quarter of 2016 adjusted gross profit of $322 million, or 26.4 percent of sales, excludes the negative impact of a $9 million purchase accounting adjustment related to the TAP acquisition acquired in the 2016 fourth quarter. Gross profit margins on an adjusted basis decreased due to negative product mix, higher incentive compensation expenses and increased commodity costs offset somewhat, by increased volume, lower promotional costs and ongoing gross VIP cost savings.

Operating expenses increased 13 percent for the fourth quarter of 2017 to $264 million from $233 million in the same period in 2016, which included $1 million in Victory Motorcycles wind down costs, $3 million of TAP integration expenses and $9 million of corporate restructuring charges. Excluding these costs, operating expenses increased primarily due to the addition of operating expenses from TAP, higher variable compensation expenses, as well as increased research and development expenses and increased selling and marketing costs related to new products, offset somewhat by lower legal related expenses.

Income from financial services was $19 million for the fourth quarter of 2017, down four percent compared with $19 million for the fourth quarter of 2016. The decrease is attributable to lower income generated from the wholesale portfolio due to the lower dealer inventory levels.

Non-operating other expense (income), net, was $5 million of income for the fourth quarter of 2017, versus $6 million of expense in the fourth quarter of 2016. The change primarily relates to a gain on a sale of Brammo in addition 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 fourth quarter of 2017 was $87 million or 73.3 percent of pretax income compared with $23 million or 26.8 percent of pretax income for the fourth quarter of 2016. The increase in the provision for income taxes as a percent of pretax income is due to the non-cash $55 million write-down of deferred tax assets as a result of the passing of the U.S. tax reform bill in the fourth quarter of 2017.

Financial Position and Cash Flow

Net cash provided by operating activities was $580 million for the year ended December 31, 2017, compared to $572 million for the same period in 2016. The increase in net cash provided by operating activities for the 2017 period was due to the timing of accounts payable and accrued expense payments, somewhat offset by higher factory inventory. Total debt at December 31, 2017, including capital lease obligations and notes payable, was $913 million. The Company’s debt-to-total capital ratio was 49 percent at December 31, 2017, compared to 57 percent a year ago due primarily to repayments on the revolving and term loan facilities. Cash and cash equivalents were $138 million at December 31, 2017, up from $127 million for the same period in 2016.

Share Buyback Activity

During the fourth quarter of 2017, the Company repurchased and retired 13,000 shares of its common stock for $2 million. For the full year ending December 31, 2017, the Company has repurchased and retired 1,028,000 shares of its common stock for $90 million. As of December 31, 2017, the Company has authorization from its Board of Directors to repurchase up to an additional 6.4 million shares of Polaris common stock.

2018 Business Outlook

For full year 2018, the Company expects adjusted net income to be in the range of $6.00 to $6.20 per diluted share, compared with adjusted net income of $4.85 per diluted share for 2017. The 2018 full year guidance takes into account the impact of the corporate tax adjustments included in the recently passed Tax Cuts and Jobs Act by the U.S. Congress. Full year 2018 adjusted sales are anticipated to increase in the range of three percent to five percent over 2017 adjusted sales of $5,428 million.

Vision and Strategy update

Polaris today updated its long-term Strategic Objectives first introduced in 2009. The five major objectives are as follow: being the Best in Powersports Plus, Growth through Adjacencies, Global Market Leadership, making Safety & Quality a Competitive Advantage and becoming a Productivity Powerhouse. These objectives emphasize sales and net income growth which translates into annual sales growth of greater than five percent compounded annually and net income growth of greater than 15 percent compounded annually through 2022 on an adjusted basis.

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 million to $90 million through 2018, 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. In 2017, the Company recorded pretax costs of $77 million. These costs are excluded from Polaris’ 2017 sales and earnings guidance on a non-GAAP basis.

Restructuring and 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 has transferred fabrication operations for its Pro Armor aftermarket products from its facility in Riverside, Calif., to its Transamerican Auto Parts facility in Chula Vista, Calif. In 2017, the Company incurred costs of $11 million, associated with the manufacturing realignment, and are recorded in the income statement within the respective gross profit and operating expenses. In addition, the Company has recorded restructuring costs totaling $11 million in the 2017 fourth quarter related to realigning and streamlining the Company's sales and service groups. 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.

Fourth Quarter 2017 Earnings Conference Call and Webcast Presentation

Today at 10:00 AM (CST) Polaris Industries Inc. will host a conference call and webcast to discuss the 2017 fourth quarter results and expectations for 2018 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 5877616.

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 that has been fueling the passion of riders, workers and outdoor enthusiasts for more than 60 years. With annual 2017 sales of $5.4 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 2018 future sales, shipments, net income, and net income per share, operational initiatives and impact of tax reform 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 December 31,					Years ended December 31,
	2017			2016		2017		2016
Sales	$	1,431,049		$	1,217,789	$	5,428,477	$	4,516,629
Cost of sales	1,063,237			905,017		4,103,826		3,411,006
Gross profit	367,812			312,772		1,324,651		1,105,623
Operating expenses:
Selling and marketing	116,319			97,423		471,805		342,235
Research and development	62,412			48,870		238,299		185,126
General and administrative	85,198			87,039		331,196		306,442
Total operating expenses	263,929			233,332		1,041,300		833,803
Income from financial services	18,595			19,303		76,306		78,458
Operating income	122,478			98,743		359,657		350,278
Non-operating expense:
Interest expense	7,717			5,601		32,155		16,319
Equity in loss of other affiliates	1,921			1,434		6,760		6,873
Other expense (income), net	(5,137		)	6,249		1,951		13,835
Income before income taxes	117,977			85,459		318,791		313,251
Provision for income taxes	86,502			22,878		146,299		100,303
Net income	$	31,475		$	62,581	$	172,492	$	212,948
Net income per share:
Basic	$	0.50		$	0.98	$	2.74	$	3.31
Diluted	$	0.49		$	0.97	$	2.69	$	3.27
Weighted average shares outstanding:
Basic	62,993			63,578		62,916		64,296
Diluted	64,895			64,327		64,180		65,158

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
	December 31,		December 31,
	2017		2016
Assets
Current Assets:
Cash and cash equivalents	$	138,345	$	127,325
Trade receivables, net	200,144		174,832
Inventories, net	783,961		746,534
Prepaid expenses and other	101,453		91,636
Income taxes receivable	29,601		50,662
Total current assets	1,253,504		1,190,989
Property and equipment, net	747,189		727,596
Investment in finance affiliate	88,764		94,009
Deferred tax assets	115,511		188,471
Goodwill and other intangible assets, net	780,586		792,979
Other long-term assets	104,039		105,553
Total assets	$	3,089,593	$	3,099,597
Liabilities and Shareholders’ Equity
Current Liabilities:
Current portion of debt, capital lease obligations and notes payable	$	47,746	$	3,847
Accounts payable	317,377		273,742
Accrued expenses:
Compensation	168,014		122,214
Warranties	123,840		119,274
Sales promotions and incentives	162,298		158,562
Dealer holdback	114,196		117,574
Other	186,103		162,432
Income taxes payable	10,737		2,106
Total current liabilities	1,130,311		959,751
Long term income taxes payable	20,114		26,391
Capital lease obligations	18,351		17,538
Long-term debt	846,915		1,120,525
Deferred tax liabilities	10,128		9,127
Other long-term liabilities	120,398		90,497
Total liabilities	$	2,146,217	$	2,223,829
Deferred compensation	11,717		8,728
Shareholders’ equity:
Total shareholders’ equity	931,659		867,040
Total liabilities and shareholders’ equity	$	3,089,593	$	3,099,597

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
	Years ended December 31,
	2017			2016
Operating Activities:
Net income	$	172,492		$	212,948
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	191,108			167,512
Noncash compensation	50,054			57,927
Noncash income from financial services	(27,027		)	(30,116		)
Deferred income taxes	73,614			(26,056		)
Excess tax benefits from share-based compensation	—			(3,578		)
Impairment charges	25,395			—
Other, net	3,401			13,462
Changes in operating assets and liabilities:
Trade receivables	(17,064		)	2,030
Inventories	(26,958		)	111,999
Accounts payable	39,516			(62,693		)
Accrued expenses	94,557			145,261
Income taxes payable/receivable	23,410			(1,997		)
Prepaid expenses and others, net	(22,518		)	(14,916		)
Net cash provided by operating activities	579,980			571,783
Investing Activities:
Purchase of property and equipment	(184,388		)	(209,137		)
Investment in finance affiliate, net	32,272			35,179
Investment in other affiliates	(625		)	(11,595		)
Acquisition and disposal of businesses, net of cash acquired	1,645			(723,705		)
Net cash used for investing activities	(151,096		)	(909,258		)
Financing Activities:
Borrowings under debt arrangements / capital lease obligations	2,186,939			3,232,137
Repayments under debt arrangements / capital lease obligations	(2,421,473		)	(2,552,760		)
Repurchase and retirement of common shares	(90,461		)	(245,816		)
Cash dividends to shareholders	(145,423		)	(140,336		)
Proceeds from stock issuances under employee plans	42,738			17,690
Excess tax benefits from share-based compensation	—			3,578
Net cash provided by (used for) financing activities	(427,680		)	314,493
Impact of currency exchange rates on cash balances	9,816			(5,042		)
Net increase (decrease) in cash and cash equivalents	11,020			(28,024		)
Cash and cash equivalents at beginning of period	127,325			155,349
Cash and cash equivalents at end of period	$	138,345		$	127,325

POLARIS INDUSTRIES INC.
NON-GAAP RECONCILIATION OF RESULTS
(In Thousands, Except Per Share Data)
(Unaudited)
	Three months ended
	December 31,					Years ended December 31,
	2017			2016		2017			2016
Sales	$	1,431,049		$	1,217,789	$	5,428,477		$	4,516,629
Victory wind down (1)	(2,364		)	—		(1,857		)	—
Restructuring & realignment (3)	1,048			—		1,048			—
Adjusted sales	1,429,733			1,217,789		5,427,668			4,516,629
Gross profit	367,812			312,772		1,324,651			1,105,623
Victory wind down (1)	2,874			—		57,844			—
TAP (2)	—			8,803		12,950			8,803
Restructuring & realignment (3)	2,463			—		12,980			—
Adjusted gross profit	373,149			321,575		1,408,425			1,114,426
Income before taxes	117,977			85,459		318,791			313,251
Victory wind down (1)	164			—		77,398			—
TAP (2)	3,463			21,454		26,921			21,454
Restructuring & realignment (3)	11,598			—		22,116			—
Adjusted income before taxes	133,202			106,913		445,226			334,705
Net income	31,475			62,581		172,492			212,948
Victory wind down (1)	(1,012		)	—		52,366			—
TAP (2)	2,177			13,515		16,923			13,515
Restructuring & realignment (3)	7,291			—		13,902			—
Tax reform (4)	55,398			—		55,398			—
Adjusted net income (5)	95,329			76,096		311,081			226,463
Diluted EPS	$	0.49		$	0.97	$	2.69		$	3.27
Victory wind down (1)	(0.02		)	—		0.82			—
TAP (2)	0.03			0.21		0.26			0.21
Restructuring & realignment (3)	0.11			—		0.22			—
Tax reform (4)	0.86			—		0.86			—
Adjusted EPS (5)	$	1.47		$	1.18	$	4.85		$	3.48
(1) Represents adjustments for the wind down of Victory Motorcycles, including wholegoods, accessories and apparel
(2) Represents adjustments for TAP integration expenses
(3) Represents adjustments for corporate restructuring and network realignment costs
(4) Represents an adjustment for impacts of a charge in its income tax provision due to the remeasurement of its deferred income tax positions at the new corporate income tax rate of 23.8 percent (from 37.1 percent)
(5) The Company used its estimated statutory tax rate of 37.1% for the non-GAAP adjustments, except for the non-deductible items and the tax reform related changes noted in Item 4
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 RECONCILIATION OF SEGMENT RESULTS
(In Thousands)
(Unaudited)
	Three months ended December 31,					Years ended December 31,
	2017			2016		2017			2016
SEGMENT SALES
ORV/Snow segment sales	$	993,750		$	880,905	3,570,753			3,283,890
Restructuring & realignment (3)	1,048			—		1,048			—
Adjusted ORV/Snow segment sales	994,798			880,905		3,571,801			3,283,890
Motorcycles segment sales	102,723			104,331		576,068			699,171
Victory wind down (1)	(2,364		)	—		(1,857		)	—
Adjusted Motorcycles segment sales	100,359			104,331		574,211			699,171
Global Adjacent Markets (GAM) segment sales	116,612			98,384		396,764			341,937
No adjustment	—			—		—			—
Adjusted GAM segment sales	116,612			98,384		396,764			341,937
Aftermarket segment sales	217,964			134,169		884,892			191,631
No adjustment	—			—		—			—
Adjusted Aftermarket sales	217,964			134,169		884,892			191,631
Total sales	1,431,049			1,217,789		5,428,477			4,516,629
Total adjustments	(1,316		)	—		(809		)	—
Adjusted total sales	$	1,429,733		$	1,217,789	$	5,427,668		$	4,516,629
SEGMENT GROSS PROFIT
ORV/Snow segment gross profit	$	278,544		$	251,521	$	1,054,557		$	907,597
Restructuring & realignment (3)	1,048			—		1,048			—
Adjusted ORV/Snow segment gross profit	279,592			251,521		1,055,605			907,597
Motorcycles segment gross profit	5,108			1,063		16,697			87,538
Victory wind down (1)	2,874			—		57,844			—
Adjusted Motorcycles segment gross profit	7,982			1,063		74,541			87,538
Global Adjacent Markets (GAM) segment gross profit	29,623			28,986		94,920			95,149
Restructuring & realignment (3)	415			—		10,932			—
Adjusted GAM segment gross profit	30,038			28,986		105,852			95,149
Aftermarket segment gross profit	60,777			28,017		225,498			46,289
TAP (2)	—			8,803		12,950			8,803
Adjusted Aftermarket segment gross profit	60,777			36,820		238,448			55,092
Corporate segment gross profit	(6,240		)	3,185		(67,021		)	(30,950		)
Restructuring & realignment (4)	1,000			—		1,000			—
Adjusted Corporate segment gross profit	(5,240		)	3,185		(66,021		)	(30,950		)
Total gross profit	367,812			312,772		1,324,651			1,105,623
Total adjustments	5,337			8,803		83,774			8,803
Adjusted total gross profit	$	373,149		$	321,575	$	1,408,425		$	1,114,426
(1) Represents adjustments for the wind down of Victory Motorcycles, including wholegoods, accessories and apparel
(2) Represents adjustments for TAP acquisition inventory step-up expenses
(3) Represents adjustments for network realignment costs
(4) Represents adjustments for costs related to supply chain transformation
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 2018 GUIDANCE

2018 Adjusted Guidance: 2018 guidance excludes the pre-tax effect of acquisition integration costs of approx. $10 million, supply chain transformation costs of approx. $10 million to $20 million and the remaining impacts associated with the Victory wind down which is estimated to be in the range of $5 million to $10 million. 2018 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.

Click here to subscribe to Mobile Alerts for Polaris Industries Inc.

EX-99.2

Exhibit 99.2

 Fourth Quarter & Full Year 2017 Earnings Results  January 30, 2018  POLARIS INDUSTRIES INC.  

 SAFE HARBOR & NON-GAAP MEASURES  2  Q4 & FY'17 Earnings  Except for historical information contained herein, the matters set forth in this presentation, including management’s expectations regarding 2018 future sales, shipments, net income, and net income per share, operational initiatives and impact of tax reform 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 (total and organic), 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 are included on slides 4 and 5 in this presentation. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.    

 2018 GUIDANCE ADJUSTMENTS  3  Q4 & FY'17 Earnings    2018 guidance excludes the pre-tax effect of acquisition integration costs of approx. $10 million, supply chain transformation costs of approx. $10 million to $20 million and the remaining impacts associated with the Victory wind down which is estimated to be in the range of $5 million to $10 million. 2018 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. 

 NON-GAAP RECONCILIATIONS  4  Q4 & FY'17 Earnings  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, restructuring and realignment costs, and impacts of the tax reform.  Reconciliation of GAAP "Reported" Results to Non-GAAP "Adjusted" Results (In Thousands, except per share data; Unaudited)  Adjustments:  (1) Represents adjustments for the wind down of Victory Motorcycles, including wholegoods, accessories and apparel  (2) Represents adjustments for TAP integration expenses  (3) Represents adjustments for corporate restructuring and network realignment costs  (4) Represents an adjustment for impacts of a charge in its income tax provision due to the remeasurement of its deferred income tax positions at the new corporate income tax rate of 23.8 percent (from 37.1 percent)  (5) The Company used its estimated statutory tax rate of 37.1% for the non-GAAP adjustments, except for the non-deductible items and the tax reform related changes noted in Item 4  2016 Reclassified Results: 2016 sales and gross profit results for ORV/Snowmobiles, Motorcycles and Aftermarket are reclassified for the new Aftermarket reporting segment.    Three months ended December 31,  Three months ended December 31,            Years ended December 31,  Years ended December 31,              2017  2017    2016  2016      2017  2017    2016  2016      Sales  $  1,431,049    $  1,217,789      $  5,428,477    $  4,516,629      Victory wind down (1)    (2,364  )    —        (1,857  )    —      Restructuring & realignment (3)    1,048      —        1,048      —      Adjusted sales    1,429,733      1,217,789        5,427,668      4,516,629                                    Gross profit    367,812      312,772        1,324,651      1,105,623      Victory wind down (1)    2,874      —        57,844      —      TAP (2)    —      8,803        12,950      8,803      Restructuring & realignment (3)    2,463      —        12,980      —      Adjusted gross profit    373,149      321,575        1,408,425      1,114,426                                    Income before taxes    117,977      85,459        318,791      313,251      Victory wind down (1)    164      —        77,398      —      TAP (2)    3,463      21,454        26,921      21,454      Restructuring & realignment (3)    11,598      —        22,116      —      Adjusted income before taxes    133,202      106,913        445,226      334,705                                    Net income    31,475      62,581      $  172,492      212,948      Victory wind down (1)    (1,012  )    —        52,366      —      TAP (2)    2,177      13,515        16,923      13,515      Restructuring & realignment (3)    7,291      —        13,902      —      Tax reform (4)    55,398      —        55,398      —      Adjusted net income (5)  $  95,329    $  76,096      $  311,081    $  226,463                                    Diluted EPS  $  0.49    $  0.97      $  2.69    $  3.27      Victory wind down (1)    (0.02  )    —        0.82      —      TAP (2)    0.03      0.21        0.26      0.21      Restructuring & realignment (3)    0.11      —        0.22      —      Tax reform (4)    0.86      —        0.86      —      Adjusted EPS (5)  $  1.47    $  1.18      $  4.85    $  3.48                                   

 NON-GAAP RECONCILIATIONS - SEGMENTS  5  Q4 & FY'17 Earnings  Non-GAAP Reconciliation of Segment Results (In Thousands; Unaudited)  Adjustments:  (1) Represents adjustments for the wind down of Victory Motorcycles, including wholegoods, accessories and apparel  (2) Represents adjustments for TAP integration expenses  (3) Represents adjustments for corporate restructuring and network realignment costs  (4) Represents adjustments for costs related to supply chain transformation.  2016 Reclassified Results: 2016 sales and gross profit results for ORV/Snowmobiles, Motorcycles and Aftermarket are reclassified for the new Aftermarket reporting segment.    Three months ended December 31,  Three months ended December 31,            Years ended December 31,  Years ended December 31,              2017  2017    2016  2016      2017  2017    2016  2016      SEGMENT SALES                              ORV/Snow segment sales  $  993,750    $  880,905      $  3,570,753    $  3,283,890      Restructuring & realignment (3)    1,048      —        1,048      —      Adjusted ORV/Snow segment sales    994,798      880,905        3,571,801      3,283,890                                    Motorcycles segment sales    102,723      104,331        576,068      699,171      Victory wind down (1)    (2,364  )    —        (1,857  )    —      Adjusted Motorcycles segment sales    100,359      104,331        574,211      699,171                                    Global Adjacent Markets (GAM) segment sales    116,612      98,384        396,764      341,937      No adjustment    —      —        —      —      Adjusted GAM segment sales    116,612      98,384        396,764      341,937                                    Aftermarket segment sales    217,964      134,169        884,892      191,631      No adjustment    —      —        —      —      Adjusted Aftermarket sales    217,964      134,169        884,892      191,631                                    Total sales    1,431,049      1,217,789        5,428,477      4,516,629      Total adjustments    (1,316  )    —        (809  )    —      Adjusted total sales  $  1,429,733    $  1,217,789      $  5,427,668    $  4,516,629                                      Three months ended December 31,            Years ended December 31,            2017    2016        2017    2016      SEGMENT GROSS PROFIT                         ORV/Snow segment gross profit  278,544    251,521        1,054,557    907,597      Restructuring & realignment (3)  1,048    —        1,048    —      Adjusted ORV/Snow segment gross profit  279,592    251,521        1,055,605    907,597                              Motorcycles segment gross profit  5,108    1,063        16,697    87,538      Victory wind down (1)  2,874    —        57,844    —      Adjusted Motorcycles segment gross profit  7,982    1,063        74,541    87,538                              Global Adjacent Markets (GAM) segment gross profit  29,623    28,986        94,920    95,149      Restructuring & realignment (3)  415    —        10,932    —      Adjusted GAM segment gross profit   30,038    28,986        105,852    95,149                              Aftermarket segment gross profit  60,777    28,017        225,498    46,289      TAP (2)  —    8,803        12,950    8,803      Adjusted Aftermarket segment gross profit   60,777    36,820        238,448    55,092                              Corporate segment gross profit  (6,240  )  3,185        (67,021  )  (30,950  )    Restructuring & realignment (4)  1,000    —        1,000    —      Adjusted Corporate segment gross profit  (5,240  )  3,185        (66,021  )  (30,950  )                            Total gross profit  367,812    312,772        1,324,651    1,105,623      Total adjustments  5,337    8,803        83,774    8,803      Adjusted total gross profit  373,149    321,575        1,408,425    1,114,426     

 Scott W. Wine, Chairman & CEO  Fourth Quarter & Full Year 2017 Earnings Results  January 30, 2018     POLARIS INDUSTRIES INC.  

 FOURTH QUARTER AND FULL YEAR 2017 SUMMARY  7  Q4 & FY'17 Earnings  Significant Investments and Improvements in People, Processes, Product Innovation and Quality   Q4 and FY 2017 financials met expectations with strong topline growthN.A. retail sales increased 1% for full year; +5% in 2nd HalfIndian Motorcycles out-performed industry and gained share againAll segments and regions reported positive sales in Q4 and Full YearIncreased R&D and Safety & Quality spend yielding resultsProduction flow improving; dealer inventories adequate in aggregate Adjusted* Gross Margins improved; positive product mix, lower warrantyManufacturing realignment, restructuring and TAP integration execution progressing  FY 2017 Sales* by Segment  $5.4B20%  ORV/Snow9%  Motorcycles7% excl. Victory  Adj. Markets16%  Aftermarket362%   * See GAAP/Non-GAAP Reconciliation on Slides #4-5 

 NORTH AMERICAN POWERSPORTS RETAIL SALES  Polaris N.A. retail down 1% for Q4 2017 vs. Q4 2016Snow retail decline driven by lack of non-current inventory / poor snow Indian Motorcycle retail was up 17% - continued share gainsORV retail down low single digits %; RZR down; RGR upNew products selling well, but availability limited initiallyPromotional spend down year-over-year and sequentially in Q4North American Industry up low-single digits in Q4SxS growth continued strong; ATVs down low-single digits %     POLARIS  INDUSTRY  Off-Road Vehicles    low-single digits %   low-single digits % (estimated)  Side-by-Sides ATVs    low-single digits % flattish    Motorcycles    ~30 %   high-single digits % (900cc & above)   Indian Slingshot    mid-teens %  Almost double    Snowmobiles(season-end Mar’18)    low-double digits %    low-double digits %        Indian Share Gains Continue; N.A. Retail Down 1% Driven by Snow  Q4’17 Retail Sales by Business (vs. Q4’16)  Polaris Retail Sales  Q4 & FY'17 Earnings  8  Fourth Quarter  1st Half / 2nd Half  Full Year 

 Polaris Q4 2017 N.A. dealer inventory up 1% vs. Q4 2016Snow up 20%; weak snow, competitive promotionsORV down 6%Indian Motorcycles up as expected; Slingshot flattishDeliveries of new products later than planned  Dealer Inventory Levels Adequate, in Aggregate; Targeted Refinement Anticipated  Q4 Total N.A. Dealer Inventory  Polaris N.A. Total Dealer Inventory  NORTH AMERICAN DEALER INVENTORY  +1%  Q4 & FY'17 Earnings  9  -6%  Year-over-year % Change in Units  -10%  +5%  +4%  +2%  -8%  -7%  +1% 

 LUCY DOUGHERTY IMAGE TO COME  Welcome to Polaris!   Lucy Clark DoughertySVP – General CounselEffective January 29, 2018  Michael F. DonougheChief Technical OfficerEffective January 22, 2018  MANAGEMENT LEADERSHIP CHANGES  Two Strong Leaders: Executive Leadership Transition Complete  Eight year career with General MotorsDeputy GC for General Motors International, Autonomous Vehicles and Vehicles as a ServiceProvided pivotal support for GM’s global growth strategyFirst Chief Legal Officer for Dept. of Homeland SecurityPart of core team that defined and established DHS  Nearly 30 years of automotive technology experienceEngineering, R&D, and senior management for Chrysler and Mercedes-Benz; EVP of Engineering, Mfg, Quality for Tesla CEO of SINOEV Technologies, COO of Bright AutomotiveFounding partner and principal of Third Shore GroupVenture capital firm specializing in clean energy development  Q4 & FY'17 Earnings  10 

 Improve Customer & Dealer Relations  Productivity Powerhouse  2018 FOCUS AREAS  Safety and Quality  Culture of Zero DefectsImproved Supplier QualityProduct Development Process 2.0Improved Customer Feedback  Know our Consumer BetterSales Force Realignment – CRMImprove Dealer ProfitabilityStore layout, dealer training, on-time delivery, better communication, RFM, smarter promotions  Driven to Become a Highly Efficient Growth Company  Q4 & FY'17 Earnings  12  WarrantyDown  RecallsDown  ReworkDown  ClaimsDown  TOP PRIORITY  DELIVER ON OUR PROMISES  MARGIN EXPANSION    Engineering  Mfg. / Logistics  Indirect Sourcing / SG&A  Strategic Sourcing       

 Mike Speetzen, EVP Finance & CFO  Fourth Quarter & Full Year 2017 Earnings Results  January 30, 2018     POLARIS INDUSTRIES INC.  

 Q4 2017 GAAP and Adjusted* Sales and Income  Q4 reported sales were $1,431 million, up 18% from Q4 2016; Reported net income was $31 million, down 50% due to tax reform; Adjusted* sales were up 17% finishing ahead of expectationsAcquisition of Transamerican Auto Parts (TAP) contributed $83 million of sales in Q4 2017Q4 2016 included Victory sales of $25 million ORV/Snowmobile sales up 13%; Motorcycles down 4% (up 26% excluding Victory); Global Adjacent Markets up 19%; Aftermarket up 62% (TAP)GAAP earnings per share was $0.49, down 49% from prior year; Adjusted* earnings per share was $1.47, up 25% vs. Adjusted* Q4 2016GAAP gross profit margin flat vs PY at 25.7%; Adjusted* gross profit margin down 30 bps:  VIP,  pricing/promo,  product mix,  incentive comp,  commodities  Results Finished In-line with Expectations in Spite of Headwinds During the Quarter  Q4 2017 GAAP and Adjusted* Net Income  Q4 2017 GAAP and Adjusted* Sales  ($ millions)  ($ millions)  Q4 & FY'17 Earnings  14   * See GAAP/Non-GAAP Reconciliation on Slides #4-5   EPS  $1.18  $0.97  $0.49  $1.47 

 FY 2017 GAAP and Adjusted* Sales and Income  Full year 2017 reported sales were $5,428 million, up 20% from 2016; reported net income was $172 million, down 19% from prior year as a result of tax reform adjustment for deferred taxesAcquisition of Transamerican Auto Parts (TAP) added $685 million of sales in 20172016 includes Victory sales of $164 million ORV/Snowmobile sales up 9%; Motorcycles down 18% (up 7% excl. Victory); Global Adjacent Markets up 16%; Aftermarket up significantly (TAP)GAAP earnings per share was $2.69, down 18% from prior year; Adjusted* earnings per share was $4.85, up 39%GAAP gross profit margin down 10 bps; Adjusted* gross profit margin up 120 bps:  VIP,  product mix,  one-time warranty,  promotions/pricing  Full Year Results Finished as Expected  FY 2017 GAAP and Adjusted* Net Income  FY 2017 GAAP and Adjusted* Sales  ($ millions)  ($ millions)  Q4 & FY'17 Earnings  15   * See GAAP/Non-GAAP Reconciliation on Slides #4-5   EPS  $3.48  $3.27  $2.69  $4.85 

 FY 2017 ORV/Snow Segment Sales  OFF-ROAD VEHICLES (ORV) / SNOWMOBILES  Q4 2017 ORV/Snow Segment Sales  ORV up 13% in Q4 2017 vs. Q4 2016Side-by-side and snow up significantlyPG&A up 9%Average selling price for ORV up 4% in Q4’17; Snowmobiles down 3% due to higher promotionsFY 2017 up 9% driven by all business categories  Increased Shipments in Q4 to Replenish Dealers After Strong Q3 ORV Retail  Q4 & FY'17 Earnings  16   7%  13%   9%    $3.3B  ORV  PG&A  Snow  ORV  PG&A  Snow  9%$3.6B  ORV  PG&A  Snow  $0.9B  ORV  PG&A  Snow   9%  11%  14%    % ∆  Reclassified(1)   (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)  

 FY 2017 Motorcycles Segment Sales  MOTORCYCLES  Q4 2017 Motorcycles Segment Sales   Q4 & FY'17 Earnings  17  $699  PG&A  PG&A  PG&A  18%$574  $576  VictoryIndianSlingshot  VictoryIndianSlingshot  IndianSlingshot  IndianSlingshot   (1)   ($ millions)  ($ millions)  flat   27%    4%$100  PG&A  $104  PG&A  IndianSlingshot  ($ millions)  Victory  PG&A  IndianSlingshot  % ∆  2%$103  Victory   * See GAAP/Non-GAAP Reconciliation on Slides #4-5 (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    5%   5%    % ∆  Q4 2017 reported sales down 2%, Adjusted* sales down 4% vs. Q4 2016; Motorcycle sales up 26% excluding Victory sales in Q4 2017 vs. 2016Indian shipments up mid-teens; Slingshot sales more than double in Q4Average selling price up 1% in Q4, excluding VictoryFY 2017 reported sales down 18%; Adjusted* sales up 7% excluding Victory  Continued Market Share Gains for Indian Motorcycle; Momentum Continues   (1)  

 FY 2017 GAM Segment Sales   GLOBAL ADJACENT MARKETS (GAM)  Q4 2017 GAM Segment Sales  GAM  19% due to Aixam and Goupil strong performance; increased Defense; FY up 16%Average selling price for GAM was up 14% in Q4’17 due to Defense mix  Q4 & FY'17 Earnings  18  ($ millions)  ($ millions)  7%   21%    19%$117  PG&A  PG&A  % ∆  $342  PG&A  PG&A  16%$397   17%   16%    % ∆  $98  Aixam, Goupil and Defense Driving Increase in Q4  Polaris Commercial, Gov’t/Defense & Aixam   

 FY 2017 Aftermarket Segment Sales   AFTERMARKET  Q4 2017 Aftermarket Segment Sales  TAP up $83 million in Q4; FY TAP contributed $685 million vs. prior yearOther Aftermarket brands up 1% in Q4Total Aftermarket up 3% on a pro-forma basis quarter-over-quarterFY 2017 sales up 6% on a proforma basis  Q4 & FY'17 Earnings  19  ($ millions)  ($ millions)  Pics?   (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  $192  Other  Other   Significantly$885  TAP  Reclassified(1)   Reclassified(1)   $192    $134  TAP Performance & Integration Meeting Expectations  Other  Other 

 2018 FULL YEAR SALES & EPS GUIDANCE  Full Year Adjusted* EPS Guidance  Full Year Total Company Adjusted* Sales Guidance  Gross margin improves 40 to 60 bps VIP savings, warranty FX (assume 2017 avg. rates), Pricing/promotions Product mix, commodities/investmentsOperating expense $ up slightly; down 40 to 60 bps as a % of salesFinancial services flat to down slightlyInterest expense up due to rising interest ratesTax rate ~23% vs. 30% 2017, tax reformShare count up ~2% ~dilution impacts  2018 Adjusted* Sales & Earnings Guidance Aligned with Long-Term Strategy  Q4 & FY'17 Earnings  20  ($ millions)  ($ millions)  Powersports market expected flat to up slightlyMotorcycle share gains continueORV share stabilizing   * See slide 3 for discussion regarding non-GAAP adjustments excluded from 2018 guidance 

 Aftermarket  ORV/Snowmobiles  Growth in All Segments in 2018  21  Q4 & FY'17 Earnings  2018 FULL YEAR GUIDANCE BY SEGMENT  Global Adjacent Markets  Motorcycles  Up low tomid-single digits %  $3.6B  ORV  PG&A  Snow  ORV  PG&A  Snow  PG&A  $574  IndianSlingshot  PG&A  Up high-singledigits %  IndianSlingshot  PG&A  PG&A  CommercialGov’t/DefenseAixam  Up mid-single digits %  $397  Up high-single digits %  $885  ($ millions)  ($ millions)  ($ millions)  ($ billions)   * See GAAP/Non-GAAP Reconciliation on Slide #5  CommercialGov’t/DefenseAixam 

     GROSS PROFIT MARGIN GUIDANCE  Adjusted* Gross Profit 2018 Guidance  Gross Margin FY 2017  2018 Gross Margin Improvement Driven Primarily by Lower Warranty & VIP Savings  Q4 & FY'17 Earnings  22  KEY:  Improvement  Headwind  Neutral     * See slide 3 for discussion regarding non-GAAP adjustments excluded from 2018 guidance  Increase up 40 to 60 bps    VIP  Product Mix  One-time warranty    Promos/Price   VIP Warranty   FX Promos/Price   Commodities/Investments Product Mix  Gross Marginby Segment  FY 2016GAAP*  FY 2016Adjusted*  FY 2017 GAAP*  FY 2017 Adjusted*  ORV/Snow  27.6%  27.6%  29.5%  29.6%  Motorcycles  12.5%  12.5%  2.9%  13.0%  Adjacent Markets  27.8%  27.8%  23.9%  26.7%  Aftermarket  24.2%  28.7%  25.5%  26.9%  Gross Marginby Segment  2018 Expectations  ORV/Snow     Motorcycles      Adjacent Markets      Aftermarket     

 2017 ENDING & 2018 FINANCIAL POSITION EXPECTATIONS  23  Q4 & FY'17 Earnings  Capital Summary December 2017  Cash Drivers      Variance toDecember 2016  Cash  $ 138  +9%  Debt /Capital Lease Obligations  $ 913  -20%  Shareholders’ Equity  $ 932  +7%  Total Capital  $1,845  -8%  Debt to Total Capital   49%  -8% points  Operating cash flow up slightlyFactory inventory down sequentially from Q3; up 5% vs. 2016Cap Ex expected higher than 2017; distribution/toolingOperating cash flow expected lower; timing of accrual payments and higher working capital requirements  Operating Cash Flow  Cash Flow and Net Debt Improving – Strong Financial Position Ongoing    ($ millions)  ($ millions)  ($ millions)  FY 2017 Summary  FY 2018 Expectations  Down about 10%  Expectations  +$580  -$145  -$184  -$235  -$90  +$85 

 Scott W. Wine, Chairman & CEO  Fourth Quarter & Full Year 2017 Earnings Results  January 30, 2018     POLARIS INDUSTRIES INC.  

 25  Q4 & FY'17 Earnings  2018 BUSINESS OUTLOOK  Building a Highly Efficient Growth Company  Economy improving, Powersports industry should benefit: ORV growing, motorcycles weakOil and Gas improving; Ag mixedInternational continued improvementCompetitive landscape remains aggressive with product and promo spendTax Reform benefit expectedPolaris direct benefit significant Consumer benefit anticipated, not forecastedSafety and Quality organization maturing; driving results Productivity initiative driving investments, long term profitable growthVIP drives short term improvements; Strategic sourcing significant long term benefit Investments made in 2017 begin paying dividends in 2018RFM, R&D spend, manufacturing realignment, sales and service realignment 

 Thank You  Questions?  POLARIS INDUSTRIES INC.  

 APPENDIX    Q4 2017 SUPPLEMENTAL SALES PERFORMANCE (PG&A / INTERNATIONAL)Q4 2016 & 2017 INCOME FROM FINANCIAL SERVICES  Q4 & FY'17 Earnings  27 

 International**  Core Parts, Garments & Accessories (PG&A)*  28  Q4 & FY'17 Earnings  Q4 2017 SUPPLEMENTAL SALES PERFORMANCE  Motorcycles  Global Adjacent Markets (GAM)  Snowmobiles  Motorcycles  Global Adjacent Markets (GAM)  3% Apparel  LatinAmerica  28%   3%  16%   8%  21%  21%  Q4 Sales 8% to 205 Million  Q4 Sales 18% to $211 Million   ∆ from Q4'16  ∆ from Q4'16  *Based on GAAP reporting; does not include Aftermarket  **Based on GAAP reporting 

 Retail Credit  Wholesale Credit PA Receivables  29  Q4 & FY'17 Earnings  Income from Financial Services  Portfolio Remains Healthy  Q4 2016 & 2017 INCOME FROM FINANCIAL SERVICES  Polaris Acceptance (PA) receivables down, trending with dealer inventoryQ4 income from financial services down – lower wholesale credit offset slightly by higher retail incomeFY 2018 Guidance: Income from Financial Services flat to down slightly  $19  4%$19  1%$1,193  $1,207  ($ millions)  ($ millions)  Approval Rate  Penetration Rate  WholesaleCredit  Retail Financing  Retail Financing 

 30  Q4 & FY'17 Earnings