Small Vehicles

POLARIS INDUSTRIES INC.

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ANALYSTS MEETING

Small Vehicles

Matt Homan, V.P. – EMEA & Small Vehicles July 30, 2013

Global Small Vehicle Market Overview Light Duty Haulers

People Movers Industrial

EQC Golf

Market Size ~$4 Billion Fragmented

Global View 80% market in NA Europe & China grow faster than NA Brazil & India emerging

Growth Drivers Demand for clean low cost vehicles: Rising fuel prices Gov’t regulations Environment

Key Success Factors High quality, innovative, low cost products Distribution network After sales service Global scale & brand

Growth Market – 5 Key Segments – Polaris Currently Plays in 3 Analyst Mtg July 2013

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Global Small Vehicle Market By Geography EMEA

North America

People Movers

Light Duty Haulers

Light Duty Haulers

Industrial

Light Duty Haulers Golf

APLA

EQC

People Movers

Industrial

Industrial People Movers Golf

Golf

Largest market

2nd Largest Market

Smallest Market

Golf clear #1 segment

EQC #1 segment

People movers emerging

People Movers/LDH Fragmented

LDH Next Most Attractive

Light duty haulers emerging

Low single digit growth

Flattish growth

>10% growth

GEM first entry into market

Polaris strong with Aixam/Mega/Goupil

Polaris limited presence today

Each Region of the World Offers Different Opportunities Analyst Mtg July 2013

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Competitive Landscape Attractive dealer and distributor network Primary business/product focus = price sensitive fleet golf buyer Big 3 control >90% of fleet golf market Limited product innovation European LDH vehicles; Piaggio strong presence in India Leverage automotive brand & distribution Solid products; limited innovation

Leading niche players with small annual revenue levels Unique and complimentary electric vehicle portfolios Nominal product innovation historically Highly fragmented distribution network presence

Fragmented Industry, but Some Significant Competitors Analyst Mtg July 2013

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Why We Like the Small Vehicle Space Large Market:

>$4B Global “Alternative” Vehicle Industry

Fragmented Industry: Competition:

No dominant players – Polaris can win

Growth Trends: Less Cyclical:

Opportunity for consolidation & global leadership

Industry expected to grow 8-10% through 2030

Developing market growth & non-powersports consumer

Ripe for Innovation:

Powertrain / performance / style

Attractive Industry Where Polaris Can Win Analyst Mtg July 2013

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Strategy on a Page Strategy Statement We will be the global leader in alternative vehicles used for light work and transporting people. We will design/build the highest quality gas, electric, and hybrid vehicles at competitive costs. We will build vehicles and distribution networks, in and for, each region of the world.

Sustainable Competitive Advantages Vehicle Applications Engineering

What Success Looks Like Continue to Evaluate Acquisitions

Quality and innovation

Scale becomes an advantage

Powertrain Capabilities

Build and Expand in EMEA

Efficient gas, electric and hybrid technologies

Local Manufacturing and LCC Sourcing

Expand quadricycles and remain #1 Grow light duty hauler distribution and line-up Enter people movers

Competitive Cost

GEM Plus in NA

Ride and Handling + NVH

Continue to improve and grow GEM Enter new segments and expand line-up

Advantage vs. Small Players

Enter and Expand in APLA

Global Distribution Built in NA, EMEA, and APLA (partner/acquire)

Build Asia presence Leverage for in-market and export sales

Build $1B Small Vehicle Business Analyst Mtg July 2013

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Europe: Goupil

Electric vehicle company located in the SW of France 6000+ vehicles on the road with over 1,600 customers 65% France / 35% Export (primarily Europe) 100 Employees 2 Primary vehicles – G3 (electric) and G5 (electric & hybrid)

Innovative Light Duty Electric Vehicle Company Analyst Mtg July 2013

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Europe: Goupil Gameplan Prior to Acquisition (2011)

2017 Vision

$24M Revenue

$100M Revenue

France Centric

European/Global Presence

65% Revenue in France Presence in 12 countries

75% Revenue outside France 40% Revenue outside UE Presence in 40 countries

Inefficient Operations

LEAN Operations

100% Rev = One platform (G3)

Diversified Product Line

Culture = Innovative / Close to Costumer

Culture = Innovative / Close to MORE Customers

Clear Gameplan to Grow Goupil Analyst Mtg July 2013

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Europe: Goupil 2013 Forecast

2013 Objective

2013 Forecast

Double Digit Unit Growth Double Digit Revenue Growth Significant Margin Expansion Build on Operational Efficiencies Drive Op Profit Improvement

Good Progress at Goupil in 2013 Analyst Mtg July 2013

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Europe: Aixam/Mega Overview Enclosed Quadricycles

% of Business

Light Duty Commercial

90%

10%

City, City S, e-City, Minauto, Crossline, Crossover, GTO

Multitruck, e-Worker

Powertrain

Diesel, electric, gas

Diesel, electric

Key Markets

France, Italy, Spain

Pan-European

Price Range

€8,200 to €20,000

€8,000 to €22,000

AM License

AM License or Driver License

Range

License

$110M Manufacturer of Enclosed Quads and Light Duty Commercial Vehicles Analyst Mtg July 2013

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Europe: Aixam/Mega Acquisition Gameplan/Results Why We Like Aixam Acquisition Strengthens EMEA

2013 Forecast vs. Plan Revenue on plan

Profitable growth

Highly Profitable Market Leader Well run business

Commercial Synergies with Goupil MEGA doubles volume

Local profits on plan +2.7 market share YTD Synergies identified Team working execution plan

Polaris/Aixam Complimentary Strengths Developing future new Light/On-Road with Polaris cost/ride handling product concepts Drive Op Profit Improvement Lean company, but almost all local sourced

Leveraging Polaris global purchasing for improvement

Aixam Acquisition Off to Good Start Analyst Mtg July 2013

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North America: GEM Overview

$30M Electric Vehicle Business – Changing Demographics Analyst Mtg July 2013

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North America: GEM Results – Get Back to Basics 2013 Objective

2013 Forecast

Drive Growth Improve Customer Service

Improved Order to Delivery Times 40%

Drive Margin Expansion Improve Lead Generation

30% growth in leads

Prepare for Future Growth

Prepare to Enter New Spaces Enter light duty electric utility vehicle space by early 2014

Good Progress on GEM in 2013 Analyst Mtg July 2013

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Small Vehicles Overall Results 2013 Objective

2013 Expectations

Drive Revenue Growth

Grow well over 100%

Execute Acquisition

Aixam completed and on track

Improve Profitability

200bp overall GP improvement

Launch New Products

G5 Launched at Goupil News coming on GEM

Prepare for Future Growth

Strong new product/acquisition plan

Good Results on Small Vehicles in 2013 Analyst Mtg July 2013

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Summary: Small Vehicles 2012 vs. 2013 2012

2013

$44M Annual Revenue

Approximately $170M Annual Revenue

1 NA brand with Improvement Opportunities

1 NA brand with Strong 2013 Improvement

1 European brand with Solid Growth Plan

3 European brands and leadership in SV in Europe

Needed Profit Improvement

Strong, Profitable (local level) business

Small Vehicles Making Progress Towards Vision Analyst Mtg July 2013

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Q&A POLARIS INDUSTRIES INC.

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ANALYST & INVESTOR MEETING

Matt Homan, V.P. – EMEA and Small Vehicles July 30, 2013