UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 24, 2017 POLARIS INDUSTRIES INC. (Exact name of Registrant as specified in its charter) Minnesota (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 2100 Highway 55 Medina, Minnesota (Address of principal executive offices) (Zip Code) (763) (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 ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-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 ) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR b-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.

2 Item 2.02 Results of Operations and Financial Condition. On October 24, 2017, Polaris Industries Inc. (the Company ) issued a press release announcing the Company s third quarter 2017 financial results for the reporting period ended September 30, On October 24, 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 November 7, 2017 by dialing in the U.S. and Canada, or for international calls and entering passcode , and on the Company s website at 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 Item 9.01 Financial Statements and Exhibits. (d) Exhibits Press Release dated October 24, 2017 of Polaris Industries Inc Presentation materials dated October 24, 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.

3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: October 24, 2017 POLARIS INDUSTRIES INC. /s/ Michael T. Speetzen Michael T. Speetzen Executive Vice President Finance and Chief Financial Officer of Polaris Industries Inc.

4 EXHIBIT INDEX Exhibit Number Description 99.1 Press Release dated October 24, 2017 of Polaris Industries Inc Presentation materials dated October 24, 2017 of Polaris Industries Inc.

5 Exhibit 99.1 Polaris Reports 2017 Third Quarter Results Salesforthethirdquarterof2017increased25%toarecord$1,478.7million;adjustedsaleswere$1,480.3million,up25%, abouthalffromorganicgrowth Thirdquarter2017reportednetincomewas$1.28perdilutedshare;adjustednetincomeforthesameperiodwas$1.46per dilutedshare,aheadofexpectationsandup192%overtheprioryear PolarisNorthAmericanunitretailsaleswereup13percentwithORVretailsalesupmid-teenspercentandIndianMotorcycles unitretailsalesup16percent.retailsaleswerealsoupmodestlyversusthe2015thirdquarter Totaldealerinventorywasdown7%year-over-year;ORVdealerinventorywasdown12% Thirdquartergrossprofitmarginwas24.6%,up261basispointsoverprioryear.Adjustedgrossprofitmarginwas25.5%,up 351basispointsversuslastyearprimarilyduetopositiveproductmix,increasedVIPsavingsandlowerwarrantycosts Polarisisraisingfullyearsalesandearningspershareguidance.Adjustednetincomeisexpectedtobeintherangeof$4.75to $4.85perdilutedsharewithadjustedsalesforthefullyear2017expectedintherangeofup18%to19% 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)--October 24, Polaris Industries Inc. (NYSE: PII) today reported third quarter 2017 sales of $1,478.7 million, up 25 percent from $1,185.1 million for the third quarter of Adjusted sales, which excludes the impact from Victory Motorcycles net sales for the third quarter of 2017, were $1,480.3 million for the 2017 third quarter, up 25 percent. The Company reported third quarter 2017 net income of $81.9 million, or $1.28 per diluted share, compared with net income of $32.3 million, or $0.50 per diluted share, for the 2016 third quarter. The reported net income includes costs related to the wind down of Victory Motorcycles, certain Transamerican Auto Parts ("TAP") integration costs, and manufacturing network realignment costs. Adjusted net income for the quarter ended September 30, 2017, excluding these costs, was $93.5 million, or $1.46 per diluted share.

6 Our emphatic return to profitable growth in the third quarter was a testament to the power of the Polaris brand, the strength of our dealer network and the competitive drive of the Polaris team. During the quarter, strong retail growth in both North America and nearly all of our International markets drove record sales and highlighted our ongoing product innovation, improving product quality and sharpened execution. We delivered North American unit retail sales growth of 13 percent and overall Company sales growth of 25 percent, about half of which was organic, while lowering North American dealer inventory seven percent yearover-year. Results were strong throughout our portfolio, led by Indian Motorcycles exceptional performance as they accelerated share gains and outpaced a declining North American motorcycle market while also delivering strong growth in Europe, Australia and Asia. I am particularly proud of the improved performance from our Off-Road Vehicle business, which was fueled by a well-planned and executed Factory Authorized Clearance sale and the strong reception of our model year 2018 introductions. Encouragingly, RZR retail sales were especially strong in the quarter, and we had our best ATV retail quarter in two years. Delivering such strong results, while also launching the all new RANGER XP 1000, the best utility side-by-side ever built, is a fitting way for Matt Homan to wrap up his influential 15 year run with Polaris. I want to thank Matt for his significant contribution and wish him continued success in his career. Welcoming Chris Musso earlier this month was also a major victory and we are excited to have him grab the reins of our industry-leading ORV business, commented Scott Wine, Chairman and Chief Executive Officer of Polaris Industries. Most importantly, strong total Company sales growth translated to bottom-line improvement. Despite higher than expected costs for warranty and re-work and complications from Hurricanes Harvey and Irma, we delivered significant operating profit growth and earnings per share expansion for the quarter. With strong growth in revenue, profitability and cash flow I feel very good about the performance of the Polaris team and our improved outlook for the fourth Quarter and beyond, said Wine. Off-Road Vehicle ( ORV ) and Snowmobile segment sales, including their respective PG&A related sales, were $1,007.4 million for the third quarter of 2017, up 12 percent over $895.6 million for the third quarter of the prior year driven primarily by improved side-by-sides shipments. PG&A sales for ORV and Snowmobiles combined, increased five percent in the 2017 third quarter compared to the third quarter last year. Gross profit increased 34 percent to $296.9 million, or 29.5 percent of sales, in the third quarter of 2017, compared to $221.6 million, or 24.7 percent of sales, in the third quarter of Gross profit percentage increased primarily due to product mix as well as lower year over year warranty costs. ORV wholegood sales for the third quarter of 2017 increased 13 percent primarily driven by strong RZR shipments. Polaris North American ORV unit retail sales for the third quarter of 2017 were up mid-teens percent from the 2016 third quarter, with both side-by-side vehicles and ATVs up mid-teens percent. The North American ORV industry was up high-single digits percent compared to the third quarter last year. ORV dealer inventory was down 12 percent in the 2017 third quarter compared to the same period last year.

7 Snowmobile wholegood sales in the third quarter of 2017 increased 20 percent to $144.2 million due to timing of shipments year-over-year, as the Company manufactured and shipped its snowmobiles later in Motorcycle segment sales, including PG&A, totaled $155.1 million, a decrease of 14 percent compared to $181.2 million reported in the third quarter of 2016 which included $39.4 million of Victory Motorcycle wholegood, accessory and apparel sales. Indian motorcycle wholegood sales increased in the low twenty percent range in the third quarter driven by new product introductions and improving brand awareness. This increase somewhat offset lower Slingshot sales. Gross profit for the third quarter of 2017 was $10.4 million compared to $20.3 million in the third quarter of Adjusted for the Victory Motorcycles wind down costs of $7.6 million, motorcycle gross profit was $17.9 million, down from the third 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 up mid-single digits percent during the 2017 third quarter. Indian Motorcycles increased retail sales 16 percent, partly driven by new model introductions including the new Chieftain Elite and Limited models and Roadmaster Classic. Indian Motorcycle market share surpassed the ten percent mark in September. Slingshot's retail sales were down although the rate of decline decelerated during the quarter. Motorcycle industry retail sales, 900cc and above, were down high-single digits percent in the 2017 third quarter. Global Adjacent Markets segment sales along with its PG&A related sales, increased 17 percent to $91.6 million in the 2017 third quarter compared to $78.5 million in the 2016 third quarter. Reported gross profit decreased 27 percent to $16.0 million, or 17.5 percent of sales, in the third quarter of 2017, compared to $21.8 million, or 27.8 percent of sales, in the third quarter of Adjusted gross profit, excluding the manufacturing realignment costs, increased 2 percent to $22.2 million, or 24.2 percent of sales for the third quarter Work and Transportation group wholegood sales were up 17 percent during the third quarter of 2017 primarily due to an increase in sales in the Company's Aixam quadricycles and Goupil light-utility businesses. 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 significantly to $224.7 million in the 2017 third quarter compared to $29.9 million in the 2016 third quarter. TAP added $190.6 million of sales in the third quarter of Gross profit increased significantly to $63.2 million, or 28.1 percent of sales in third quarter of 2017, compared to $10.6 million, or 35.5 percent of sales, in the third quarter of Sales and gross profit dollars were up primarily due to the addition of TAP acquired in the fourth quarter of TAP sales grew four percent in the third quarter of 2017 compared to last year on a proforma basis, had Polaris owned TAP for the full year 2016.

8 SupplementalData: Parts,Garments,andAccessories( PG&A )sales, excluding Aftermarket segment sales, increased seven percent for the 2017 third quarter. All segments and categories increased sales during the quarter. Internationalsalesto customers outside of North America, including PG&A, totaled $156.8 million for the third quarter of 2017, up 11 percent, from the same period in Sales in EMEA and Asia Pacific increased low-double digits percent in the third quarter with Latin America growing sales mid-single digits during the quarter. Gross profit increased 40 percent to $364.0 million for the third quarter of 2017 from $260.8 million in the third quarter of As a percentage of sales, reported gross profit margin was 24.6 percent compared with 22.0 percent of sales for the third quarter of Gross profit for the third quarter of 2017 includes the negative impact of $7.6 million of Victory Motorcycles wind down costs and manufacturing network realignment costs of $6.2 million. Excluding these items, adjusted gross profit was $377.7 million, or 25.5 percent of sales. Gross profit margins on an adjusted basis improved due to increased volume, lower warranty, significant gross VIP cost savings and positive product mix, somewhat offset by higher promotional costs. Sequentially, adjusted gross profit margins were 130 basis points lower than the 2017 second quarter primarily due to higher warranty and the added costs from a combination of supply chain and natural disaster related headwinds during the quarter. Operating expenses increased 19 percent for the third quarter of 2017 to $265.2 million from $222.6 million in the same period in 2016, which included $1.3 million in Victory wind down costs and $3.5 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 and increased selling and marketing costs related to the introduction of new products, offset somewhat by lower legal related expenses. Income from financial services was $18.1 million for the third quarter of 2017, down six percent compared with $19.2 million for the third quarter of 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 $2.4 million of income for the third quarter of 2017, versus $5.7 million of expense in the third quarter of 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.

9 The provision for income taxes for the third quarter of 2017 was $27.3 million or 25.0 percent of pretax income compared with $13.5 million or 29.5 percent of pretax income for the third quarter of The decrease in the provision for income taxes as a percent of pretax income is primarily due to the benefit recognized from certain favorable outcomes of federal tax audits in the 2017 third quarter and the adoption of the new employee share-based accounting standard adopted in the first quarter of Financial Position and Cash Flow Net cash provided by operating activities was $494.5 million for the nine months ended September 30, 2017, compared to $426.2 million for the same period in 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, as well as collection of tax receivables, somewhat offset by lower net income and higher factory inventory. Total debt at September 30, 2017, including capital lease obligations and notes payable, was $920.0 million. The Company s debt-to-total capital ratio was 51 percent at September 30, 2017, compared to 32 percent a year ago due primarily to the financing of the TAP acquisition. Cash and cash equivalents were $132.3 million at September 30, 2017, up from $122.7 million for the same period in Share Buyback Activity During the third quarter of 2017, the Company repurchased and retired 257,000 shares of its common stock for $23.3 million. Year-to-date through September 30, 2017, the Company has repurchased and retired 1,015,000 shares of its common stock for $88.9 million. As of September 30, 2017, the Company has authorization from its Board of Directors to repurchase up to an additional 6.4 million shares of Polaris common stock Business Outlook The Company has increased its sales guidance and expected earnings per share range for the full year 2017 from previously issued guidance. The Company now expects adjusted net income to be in the range of $4.75 to $4.85 per diluted share, compared with adjusted net income of $3.48 per diluted share for Full year 2017 adjusted sales are now anticipated to increase in the range of 18 percent to 19 percent over 2016 sales of $4,516.6 million.

10 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. Third 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 third 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 in the U.S. and Canada, or internationally. The Conference ID is 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 in the U.S. and Canada, or internationally.

11 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-byside 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 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)

12 POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Data) (Unaudited) Three months ended September 30, Nine months ended September 30, Sales $ 1,478,726 $ 1,185,067 $ 3,997,428 $ 3,298,840 Cost of sales 1,114, ,297 3,040,589 2,505,989 Gross profit 363, , , ,851 Operating expenses: Selling and marketing 122,642 89, , ,812 Research and development 63,129 47, , ,256 General and administrative 79,421 85, , ,403 Total operating expenses 265, , , ,471 Income from financial services 18,138 19,195 57,711 59,155 Operating income 116,908 57, , ,535 Non-operating expense: Interest expense 8,492 4,051 24,438 10,718 Equity in loss of other affiliates 1,603 1,798 4,839 5,439 Other expense (income), net (2,368) 5,700 7,088 7,586 Income before income taxes 109,181 45, , ,792 Provision for income taxes 27,293 13,528 59,796 77,425 Net income $ 81,888 $ 32,312 $ 141,018 $ 150,367 Net income per share: Basic $ 1.31 $ 0.50 $ 2.24 $ 2.33 Diluted $ 1.28 $ 0.50 $ 2.21 $ 2.30 Weighted average shares outstanding: Basic 62,646 64,151 62,890 64,535 Diluted 63,885 65,027 63,942 65,435

13 POLARIS INDUSTRIES INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Per Share Data) (Unaudited) September 30, September 30, Assets Current Assets: Cash and cash equivalents $ 132,260 $ 122,696 Trade receivables, net 184, ,342 Inventories, net 841, ,943 Prepaid expenses and other 80,859 63,594 Income taxes receivable 9,535 55,096 Total current assets 1,248,650 1,149,671 Property and equipment, net 735, ,697 Investment in finance affiliate 70,910 92,203 Deferred tax assets 191, ,741 Goodwill and other intangible assets, net 784, ,419 Other long-term assets 102,162 95,594 Total assets $ 3,133,066 $ 2,470,325 Liabilities and Shareholders Equity Current Liabilities: Current portion of debt, capital lease obligations and notes payable $ 27,835 $ 4,746 Accounts payable 385, ,971 Accrued expenses: Compensation 148, ,025 Warranties 112, ,054 Sales promotions and incentives 192, ,853 Dealer holdback 117, ,386 Other 183, ,145 Income taxes payable 27,448 11,898 Total current liabilities 1,195, ,078 Long term income taxes payable 22,036 25,241 Capital lease obligations 18,451 19,122 Long-term debt 873, ,844 Deferred tax liabilities 9,366 12,574 Other long-term liabilities 107,182 77,025 Total liabilities $ 2,225,771 $ 1,532,884 Deferred compensation 11,331 9,110 Shareholders equity: Total shareholders equity 895, ,331 Total liabilities and shareholders equity $ 3,133,066 $ 2,470,325

14 POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands, Except Per Share Data) (Unaudited) Nine months ended September 30, Operating Activities: Net income $ 141,018 $ 150,367 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 138, ,903 Noncash compensation 34,249 43,137 Noncash income from financial services (20,131) (22,354) Deferred income taxes (2,703) (8,134) Excess tax benefits from share-based compensation (1,408) Impairment charges 25,395 Other, net 4,839 12,027 Changes in operating assets and liabilities: Trade receivables (447) 5,686 Inventories (83,621) (33,804) Accounts payable 108,198 5,702 Accrued expenses 80, ,207 Income taxes payable/receivable 62,336 (278) Prepaid expenses and others, net 6,277 8,193 Net cash provided by operating activities 494, ,244 Investing Activities: Purchase of property and equipment (126,647) (155,360) Investment in finance affiliate, net 43,230 29,223 Investment in other affiliates (7,110) (6,861) Acquisition and disposal of businesses, net of cash acquired 1,645 (54,830) Net cash used for investing activities (88,882) (187,828) Financing Activities: Borrowings under debt arrangements / capital lease obligations 1,623,577 1,767,272 Repayments under debt arrangements / capital lease obligations (1,850,247) (1,795,316) Repurchase and retirement of common shares (88,877) (154,381) Cash dividends to shareholders (108,923) (105,732) Proceeds from stock issuances under employee plans 14,226 15,651 Excess tax benefits from share-based compensation 1,408 Net cash used for financing activities (410,244) (271,098) Impact of currency exchange rates on cash balances 9, Net increase (decrease) in cash and cash equivalents 4,935 (32,653) Cash and cash equivalents at beginning of period 127, ,349 Cash and cash equivalents at end of period $ 132,260 $ 122,696

15 POLARIS INDUSTRIES INC. RECONCILIATION OF GAAP "REPORTED" TO NON-GAAP "ADJUSTED" RESULTS THREE MONTHS ENDED SEPTEMBER 30, 2017 (In Thousands, Except Per Share Data) (Unaudited) Reported GAAP Measures 2017 Adjustments (4) Adjusted Measures Three months ended September 30, Three months ended September 30, 2017 Three months ended September 30, Victory % Change Wind Down (1 ) TAP (2) Realignment (3) Total % Change Sales ORV/Snowmobiles $ 1,007,392 $ 895,550 12% $ 1,007,392 $ 895,550 12% Motorcycles 155, ,181 (14)% $ 1,560 $ 1, , ,181 (14)% Global Adj. Markets 91,575 78,485 17% 91,575 78,485 17% Aftermarket 224,700 29, % 224,700 29, % Total sales 1,478,726 1,185,067 25% 1,560 1,560 1,480,286 1,185,067 25% Gross profit ORV/Snowmobiles 296, ,595 34% 296, ,595 34% % of sales 29.5% 24.7% +473 bps 29.5% 24.7% +473 bps Motorcycles 10,354 20,301 (49)% 7,555 7,555 17,909 20,301 (12)% % of sales 6.7% 11.2% -453 bps 11.4% 11.2% +23 bps Global Adj. Markets 15,983 21,828 (27)% 6,214 6,214 22,197 21,828 2% % of sales 17.5% 27.8% -1,036 bps 24.2% 27.8% -357 bps Aftermarket 63,239 10, % 63,239 10, % % of sales 28.1% 35.5% -734 bps 28.1% 35.5% -734 bps Corporate (22,518) (13,545) (22,518) (13,545) Total gross profit 363, ,770 40% 7,555 6,214 13, , ,770 45% Gross profit % 24.6% 22.0% +261 bps 25.5% 22.0% +351 bps Operating expenses 265, ,576 19% (1,254) (3,492) (4,746) 260, ,576 17% Other expense (income), net (2,368) 5,700 NM (2,368) 5,700 NM Net income $ 81,888 $ 32, % $ 5,537 $ 2,195 $ 3,906 $ 11,638 $ 93,526 $ 32, % Diluted EPS $ 1.28 $ % $ 0.09 $ 0.03 $ 0.06 $ 0.18 $ 1.46 $ % (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 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.

16 POLARIS INDUSTRIES INC. RECONCILIATION OF GAAP "REPORTED" TO NON-GAAP "ADJUSTED" RESULTS NINE MONTHS ENDED SEPTEMBER 30, 2017 (In Thousands, Except Per Share Data) (Unaudited) Reported GAAP Measures 2017 Adjustments (4) Adjusted Measures Nine months ended September 30, Nine months ended September 30, 2017 Nine months ended September 30, Victory % Change Wind Down (1) TAP (2) Realignment (3) Total % Change Sales ORV/Snowmobiles $ 2,577,003 $ 2,402,985 7% $ 2,577,003 $ 2,402,985 7% Motorcycles 473, ,840 (20)% $ 507 $ , ,840 (20)% Global Adj. Markets 280, ,553 15% 280, ,553 15% Aftermarket 666,928 57,462 1,061% 666,928 57,462 1,061% Total sales 3,997,428 3,298,840 21% ,997,935 3,298,840 21% Gross profit ORV/Snowmobiles 776, ,076 18% 776, ,076 18% % of sales 30.1% 27.3% +281 bps 30.1% 27.3% +281 bps Motorcycles 11,589 86,475 (87)% 54,970 54,970 66,559 86,475 (23)% % of sales 2.4% 14.5% -1,209 bps 14.0% 14.5% -49 bps Global Adj. Markets 65,297 66,163 (1)% 10,517 10,517 75,814 66,163 15% % of sales 23.3% 27.2% -386 bps 27.1% 27.2% -10 bps Aftermarket 164,721 18, % 12,950 12, ,671 18, % % of sales 24.7% 31.8% -710 bps 26.6% 31.8% -516 bps Corporate (60,781) (34,135) (60,781) (34,135) Total gross profit 956, ,851 21% 54,970 12,950 10,517 78,437 1,035, ,851 31% Gross profit % 23.9% 24.0% -10 bps 25.9% 24.0% +186 bps Operating expenses 777, ,471 29% (9,270) (10,509) (19,779) 757, ,471 26% Other expense (income), net 7,088 7,586 (7)% (13,000) (13,000) (5,912) 7,586 NM Net income $ 141,018 $ 150,367 (6)% $ 53,378 $ 14,746 $ 6,611 $ 74,735 $ 215,753 $ 150,367 43% Diluted EPS $ 2.21 $ 2.30 (4)% $ 0.83 $ 0.23 $ 0.10 $ 1.16 $ 3.37 $ % (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.

17 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 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. CONTACT: Polaris Industries Inc. Richard Edwards,

18 Third Quarter 2017 Earnings Results October 24, 2017 POLARIS INDUSTRIES INC. Exhibit 99.2

19 SAFE HARBOR & NON-GAAP MEASURES 2 Q3'17 Earnings Except for historical information contained herein, the matters set forth in this presentation, including management s expectations regarding 2017 & 2018 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 (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 for Q3 are included on slide 3 and Q3 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.

20 Q3 NON-GAAP DISCLOSURE 3 Q3'17 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 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 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 September 30, Three months ended September 30, Three months ended September 30, Three months ended September 30, Three months ended September 30, Three months ended September 30, % Change VictoryWind Down(1) VictoryWind Down(1) TAP(2) TAP(2) Realignment(3) Realignment(3) Total Total % Change Sales ORV/Snowmobiles $ 1,007,392 $ 895, % $ 1,007,392 $ 895, % Motorcycles 155, ,181 (14 )% $ 1,560 $ 1, , ,181 (14 )% Global Adj. Markets 91,575 78, % 91,575 78, % Aftermarket 224,700 29, % 224,700 29, % Total sales 1,478,726 1,185, % 1,560 1,560 1,480,286 1,185, % Gross profit ORV/Snowmobiles 296, , % 296, , % % of sales 29.5 % 24.7 % +473 bps 29.5 % 24.7 % +473 bps Motorcycles 10,354 20,301 (49 )% 7,555 7,555 17,909 20,301 (12 )% % of sales 6.7 % 11.2 % -453 bps 11.4 % 11.2 % +23 bps Global Adj. Markets 15,983 21,828 (27 )% 6,214 6,214 22,197 21,828 2 % % of sales 17.5 % 27.8 % -1,036 bps 24.2 % 27.8 % -357 bps Aftermarket 63,239 10, % 63,239 10, % % of sales 28.1 % 35.5 % -734 bps 28.1 % 35.5 % -734 bps Corporate (22,518 ) (13,545 ) (22,518 ) (13,545 ) Total gross profit 363, , % 7,555 6,214 13, , , % Gross profit % 24.6 % 22.0 % +261 bps 25.5 % 22.0 % +351 bps Operating expenses 265, , % (1,254 ) (3,492 ) (4,746 ) 260, , % Other expense (income), net (2,368 ) 5,700 NM (2,368 ) 5,700 NM Net income $ 81,888 $ 32, % $ 5,537 $ 2,195 $ 3,906 $ 11,638 $ 93,526 $ 32, % Diluted EPS $ 1.28 $ % $ 0.09 $ 0.03 $ 0.06 $ 0.18 $ 1.46 $ %

21 Scott W. Wine, Chairman & CEO Third Quarter 2017 Earnings Results October 24, 2017 POLARIS INDUSTRIES INC.

22 Q3 SUMMARY 5 Q3'17 Earnings Q3 Exceeded Expectations Raising Full Year Adjusted* Sales & EPS Guidance Operational improvements gained momentum in Q3 Record sales quarter, sequential improvement in operating income marginn.a. Retail sales strong in Q3; up 13% ORV up mid-teens % with RZR retail up high-teens percentindian Motorcycles retail up 16%; share gains ongoing; all segments grew shareoperational execution overcame significant natural disasters: Hurricanes Harvey & Irma; floods in Mexico; transportation shortagemodel year 2018 product launch well received; initial orders solidimproving quality with each model year changeoverfactory Authorized clearance highly effectivedealer inventory lowest in 3 years on a September 30th quarter-over-quarter basisinternational and PG&A growth momentum continued in Q3 * See GAAP/Non-GAAP Reconciliation on

23 NORTH AMERICAN POWERSPORTS RETAIL SALES Polaris N.A. retail up 13% for Q vs. Q3 2016Indian Motorcycle retail was up 16% - continued share gainsorv retail up mid-teens %; RZR up high-teenspromotional spend in-line with expectations and industry trendsnorth American Industry up low-single digitssxs growth continued strong; ATVs up low-single digits % (# vehicle units) POLARIS INDUSTRY Off-Road Vehicles mid-teens % high-single digits % (estimated) Side-by-Sides ATVs mid-teens % mid-teens % Motorcycles mid-single digits % high-single digits % (900cc & above) Indian Slingshot mid-teens % high-teens % Snowmobiles(season-end Mar 18) (off-season) (off-season) N.A. Retail Turned Position After Five Quarter Decline Q3 17 Retail Sales by Business (vs. Q3 16) Polaris Retail Sales Q3'17 Earnings 6 Year-Over-Year Retail % Change (units)

24 Polaris Q N.A. dealer inventory down 7% vs. Q3 2016ORV down 12%, RZR down double digits %Motorcycles up as expected, all Indian; Slingshot flatsxs RFM implementation in processdealer inventory at year-end expected down modestly given recent retail strength Dealer Inventory Levels Appropriate, in Aggregate, as RFM Implementation Begins Q3 Total N.A. Dealer Inventory Polaris N.A. Total Dealer Inventory NORTH AMERICAN DEALER INVENTORY -7% Q3'17 Earnings 7 YE 2017expectations down low-single digits -6% Year-over-year % Change in Units -10% +1% 0% +2% -10%vs %vs % 2017 expectations -7%

25 Organizational Change 8 Q3'17 Earnings Smooth Transition Expected Matt HomanPresident Off Road VehiclesPolaris: Chris Musso President Off-Road Vehicles/SnowmobilesEffective November 6, 2017 Highly successful 15 year career with PolarisHeld multiple senior leadership positions Head of EMEA and Global Adjacent Markets Grew side-by-side business from $280M to over $2.5BMore than doubled market sharestabilized ORV business over past two years Strengthened team and multi-year product plan Intensified dealer engagement More focused marketing plan ~20 years assisting clients drive growth and profitabilitysenior partner of McKinsey & Company Heads Americas Product Development GroupRedesigned dozens of automotive, consumer and aerospace products and business models to drive enhanced profitabilitydesigned and optimized several product development processesled McKinsey s thrust into industrial design with acquisition of Lunar Founding partner/leader of Denver office (100+ consultants)developed and implemented strategies focused on performance and portfolio enhancementsavid Powersports enthusiast; strong industry knowledge

26 Polaris Strategic Objectives Under Review Initial rollout January 2009 ( )$3 Billion; 8% Net Income MarginPerformance exceeded expectations Current targets ( )>$8 Billion in Sales implied CAGR +14%>10% Net Income Margin implied CAGR +37% Q3'17 Earnings 9 Will Update 5-Year Objectives in January After Completion of 2017

27 Mike Speetzen, EVP Finance & CFO Third Quarter 2017 Earnings Results October 24, 2017 POLARIS INDUSTRIES INC.

28 Q GAAP and Adjusted* Sales and Income Q3 reported sales were $1,479 million, up 25% from Q3 2016; Reported net income was $82 million, up 153% from prior yearadjusted* sales were up 25% finishing ahead of expectationsacquisition of Transamerican Auto Parts (TAP) added $191 million of sales in Q3 2017Q includes Victory sales of $39 million ORV/Snowmobile sales up 12%; Motorcycles down 14% (up 10% excluding Victory); Global Adjacent Markets up 17%; Aftermarket up significantly (TAP)GAAP earnings per share was $1.28, up 156% from prior year; Adjusted* earnings per share was $1.46, up 192%GAAP gross profit margin up 261 bps; Adjusted* gross profit margin up 351 bps: VIP, product mix, warranty, freight/rework Results Finished Strong In Spite of Headwinds During the Quarter Q GAAP and Adjusted* Net Income Q GAAP and Adjusted* Sales ($ millions) ($ millions) Q3'17 Earnings 11 * See GAAP/Non-GAAP Reconciliation on

29 Sales Guidance by Segment (1) Adjusted* Earnings Per Share Guidance Q3'17 Earnings Total Company Adjusted* Sales Guidance Full Year Adjusted* Sales & EPS Guidance Increased 2017 FULL YEAR ADJUSTED* SALES GUIDANCE ORV market improving globallyorganic** revenue expectations +6% to +7%TAP FY 17 = incremental $675 to $690Victory wind down / FX = ~($150) + $120M non-recurring warranty, legal and other recall related costs+ TAP accretive approx. 25 to 30 + VIP + Lower tax rate+ Share count+ Product Mix Higher R&D expense Higher promotional costs Higher freight/rework Higher variable compensation costs ($ millions) +18% to +19%$5,330 to $5,370(increased) +36% to +39%$4.75 to $4.85(increased) *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 MID-SINGLE DIGITS % MOTORCYCLES HIGH-TEENS % (Victory included in 2016 # s) MID-SINGLE DIGITS %(2) (Victory excluded in 2016 # s) ADJACENT MARKETS LOW-DOUBLE DIGITS % AFTERMARKET SIGNIFICANTLY (1) Includes respective PG&A 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

30 GROSS PROFIT MARGIN GUIDANCE Adjusted* Gross Profit 2017 Guidance Gross Profit Q GM Growth Drivers+ VIP+ One-time warranty+ Acquisitions+ Product Mix Quality feature adds Promos / Incentives Q Gross Margin Improvement Driven Primarily by One-Time Warranty, VIP & Product Mix Q3'17 Earnings 13 Increase up to ~180 bps(unchanged) KEY: Improvement Headwind Neutral Gross Margin by Segment Q Q3 2017GAAP* Q3 2017Adjusted* ORV/Snow 24.7% 29.5% 29.5% Motorcycles* 11.2% 6.7% 11.4% Adjacent Markets* 27.8% 17.5% 24.2% Aftermarket* 35.5% 28.1% 28.1% Adjusted* Gross Margin by Segment 2017 Expectations(unchanged) ORV/Snow Motorcycles Adjacent Markets Aftermarket (excluding TAP) *See appendix for discussion regarding non-gaap adjustments excluded from 2017 guidance GM Growth Drivers+ Product Mix+ VIP+ Acquisitions+ One-time warranty Promos / Incentives Freight/rework

31 2017 OTHER FULL YEAR EXPECTATIONS 14 Q3'17 Earnings Slight Improvement in Operating Leverage Given Strong Sales Growth Adjusted operating expenses: increase in the 50 to 60 bps range, as a percent of sales (slightly improved) Increased R&D up ~20% excluding TAP; quality & innovationhigher variable compensation coststap operating expenseincome from financial services: down ~5% primarily due to lower dealer inventory levels and lower retail credit income (improved)interest expense: more than double due to TAP acquisition funding (unchanged)income taxes: approximately 32% of pretax profits (lowered)supplemental:international sales: up high-single digits % over 2016 (improved)pg&a: up mid-single digits % (unchanged)diluted shares outstanding: down about 2% (narrowed)

32 OFF-ROAD VEHICLES (ORV) / SNOWMOBILES Q ORV/Snow Segment Sales ORV up 12% in Q vs. Q3 2016RZR up significantlygained share in ATVs and side-by-sides in Q3PG&A up 5%Average selling price for ORV up 6% in Q3 17; Snowmobiles up 2%2017 Guidance: Up mid-single digits % (increased)pii ORV improving worldwiden.a. ORV industry up high-single digits % in Q3 Increased Market Share for Both ATV & Side-by-Sides in Q3 Q3'17 Earnings 15 12%$1,007 ORV PG&A Snow $896 ORV PG&A Snow 5% 20% 13% % ($ 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) NEW! RANGER XP 1000

33 7% 10% 5% 113% 10% Reported and Adjusted* sales down 14%**Motorcycles up 10% excluding Victory salesindian shipments up; Slingshot sales loweraverage selling price down 4% in Q3, excluding Victory 2017 Guidance: Down high-teens %*** (unchanged)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 Q Motorcycles Segment Sales Continued Market Share Gains for Indian Motorcycle; Momentum Accelerating Q3'17 Earnings 16 14%**$157 PG&A $181 PG&A IndianSlingshot IndianSlingshot ($ 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 % 14%$155 Victory Indian Motorcycle Bobber

34 21% 16% GLOBAL ADJACENT MARKETS (GAM) Q GAM Segment Sales GAM 17% due to Aixam and Goupil strong performance; increased Military and PG&A salesaverage selling price for GAM was up 3% in Q Sales Guidance: Up low-double digits % (increased) Aixam, Goupil and Military Driving Increase in Q3 Q3'17 Earnings 17 17%$92 PG&A $78 PG&A % W&T /Defense W&T /Defense ($ millions) Goupil G5

35 AFTERMARKET Q Aftermarket Segment Sales TAP added $191 million to Q3 salesother Aftermarket brands up 14%Total Aftermarket up 6 percent on a pro-forma basis quarter-over-quarter2017 Sales Guidance: Up significantly from TAP sales (unchanged) TAP Performance & Integration Meeting Expectations Q3'17 Earnings 18 ($ millions) Significantly $191 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 $30

36 2017 POLARIS FINANCIAL POSITION 19 Q3'17 Earnings Capital Summary September 2017 Cash Drivers Variance toseptember 2016 Cash $ % Debt /Capital Lease Obligations $ % Shareholders Equity $ 896-3% Total Capital $1, % Debt to Total Capital 51% -19 % points Operating cash flow up from improved working capitalfactory inventory up sequentially from Q2, new model year change overcap Ex expected to be lower than 2016 (unchanged)operating cash flow expected to be down due to timing of accrual payments, Victory wind down and manufacturing realignment Operating Cash Flow Cash Flow and Net Debt Improving Strong Financial Position Ongoing ($ millions) ($ millions) ($ millions) Year-to-date 2017 Summary FY 2017 Expectations Down low double digits % Expectations +$494 -$109 -$127 -$227 -$89 +$63

37 Scott W. Wine, Chairman & CEO Third Quarter 2017 Earnings Results October 24, 2017 POLARIS INDUSTRIES INC.

38 21 Q3'17 Earnings 2018 Initial Thoughts Solidify Execution Improvements; Deliver Another Year of Improved Sales and Profitability Economy stable, political landscape unpredictable; must remain flexible/adaptablepowersports industry trends unchanged: ORV stable, Motorcycles challengedpolaris ORV market share stable; Indian Motorcycle share gains ongoingsxs RFM implementation completed; significant improvement in on-time delivery Safety, quality and innovation improved/acceleratedgross VIP savings continue; plant optimization delivers leverage

39 Thank You Questions? POLARIS INDUSTRIES INC.

40 APPENDIX Q SUPPLEMENTAL SALES PERFORMANCE (PG&A / INTERNATIONAL)Q3 FINANCIAL SERVICESQ3 YEAR-TO-DATE NON-GAAP DISCLOSURE2017 GUIDANCE ADJUSTMENTS Q3'17 Earnings 23

41 International** Core Parts, Garments & Accessories (PG&A)* 24 Q3'17 Earnings Q SUPPLEMENTAL SALES PERFORMANCE Motorcycles Global Adjacent Markets (GAM) 6% Snowmobiles Motorcycles Global Adjacent Markets (GAM) Apparel LatinAmerica 40% 6% 6% 10% 6% 12% Q3 Sales 7% to 207 Million Q3 Sales 11% to $157 Million from Q3'16 from Q3'16 *Based on GAAP reporting; does not include Aftermarket **Based on GAAP reporting

42 Retail Credit Wholesale Credit PA Receivables 25 Q3'17 Earnings Income from Financial Services Portfolio Remains Healthy INCOME FROM FINANCIAL SERVICES Polaris Acceptance (PA) receivables down, trending with dealer inventoryq3 income from financial services down lower wholesale incomefy 2017 Guidance: Income from financial services down about 5% (improved)retail financing income improved $19 6%$18 7%$1,157 $1,246 ($ millions) ($ millions) Approval Rate Penetration Rate WholesaleCredit Retail Financing Retail Financing

43 Q3 YTD NON-GAAP DISCLOSURE 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 Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, % Change VictoryWind Down(1) VictTAP(2) Realignment(3) Realignment(3) Total Total % Change Sales ORV/Snowmobiles $ 2,577,003 $ 2,402,985 7 % $ 2,577,003 $ 2,402,985 7 % Motorcycles 473, ,840 (20 )% $ 507 $ , ,840 (20 )% Global Adj. Markets 280, , % 280, , % Aftermarket 666,928 57,462 1,061 % 666,928 57,462 1,061 % Total sales 3,997,428 3,298, % ,997,935 3,298, % Gross profit ORV/Snowmobiles 776, , % 776, , % % of sales 30.1 % 27.3 % +281 bps 30.1 % 27.3 % +281 bps Motorcycles 11,589 86,475 (87 )% 54,970 54,970 66,559 86,475 (23 )% % of sales 2.4 % 14.5 % -1,209 bps 14.0 % 14.5 % -49 bps Global Adj. Markets 65,297 66,163 (1 )% 10,517 10,517 75,814 66, % % of sales 23.3 % 27.2 % -386 bps 27.1 % 27.2 % -10 bps Aftermarket 164,721 18, % 12,950 12, ,671 18, % % of sales 24.7 % 31.8 % -710 bps 26.6 % 31.8 % -516 bps Corporate (60,781 ) (34,135 ) (60,781 ) (34,135 ) Total gross profit 956, , % 54,970 12,950 10,517 78,437 1,035, , % Gross profit % 23.9 % 24.0 % -10 bps 25.9 % 24.0 % +186 bps Operating expenses 777, , % (9,270 ) (10,509 ) (19,779 ) 757, , % Other expense (income), net 7,088 7,586 (7 )% (13,000 ) (13,000 ) (5,912 ) 7,586 NM Net income $ 141,018 $ 150,367 (6 )% $ 53,378 $ 14,746 $ 6,611 $ 74,735 $ 215,753 $ 150, % Diluted EPS $ 2.21 $ 2.30 (4 )% $ 0.83 $ 0.23 $ 0.10 $ 1.16 $ 3.37 $ % Q3'17 Earnings 26

44 2017 GUIDANCE ADJUSTMENTS 27 Q3'17 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 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.

45 28 Q3'17 Earnings