Polaris : First Quarter 2024 Presentation

First Quarter 2024 Earnings Presentation

April 23, 2024

Safe Harbor & Non-GAAP Measures

Except for historical information contained herein, the matters set forth in this [presentation] 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 strategy and supply chain initiatives; the Company's ability to successfully source necessary parts and materials on a timely basis; the ability of the Company to manufacture and deliver products to dealers to meet demand, including as a result of supply chain disruptions; the Company's ability to identify and meet optimal dealer inventory levels; the Company's ability to accurately forecast and sustain consumer demand; the Company's ability to mitigate increasing input costs through pricing or other measures; product offerings, promotional activities and pricing strategies by competitors that may make our products less attractive to consumers; the Company's ability to strategically invest in innovation and new products, including as compared to our competitors; economic conditions that impact consumer spending or consumer credit, including recessionary conditions and changes in interest rates; disruptions in manufacturing facilities; product recalls and/or warranty expenses; product rework costs; 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 on the Company's supply chain, manufacturing operations and consumer demand; commodity costs; freight and tariff costs (tariff relief or ability to mitigate tariffs); changes to international trade policies and agreements; uninsured product liability and class action claims (including claims seeking punitive damages) and other litigation expenses incurred due to the nature of the Company's business; uncertainty in the consumer retail and wholesale credit markets; performance of affiliate partners; changes in tax policy; relationships with dealers and suppliers; and the general global economic, social and political environment. 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 except as otherwise may be required by law.

The data source for retail sales figures included in this presentation is registration information provided by Polaris dealers in North America and Europe compiled by the Company or Company estimates and other industry data sources. The Company relies on information that its dealers or other third parties supply concerning retail sales, and other retail sales data sources related to Polaris and the powersports industry, and this information is subject to change. Retail sales references to total Company retail sales includes only off-road vehicles (ORV), snowmobiles, On Road and Marine in North America and International unless otherwise noted.

This presentation contains certain non-GAAP financial measures, consisting of "adjusted" sales, gross profit, income before income taxes, net income attributed to Polaris Inc., diluted EPS attributed to Polaris Inc., EPS attributed to Polaris Inc., EBITDA, EBITDA Margin, and free cash flow as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, and to understand the performance of its ongoing operations and how management views the business. Reconciliations of reported GAAP historic measures to adjusted non-GAAP measures are included in the financial schedules 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.

Continue to Take Share | Favorable Operating Costs

North America Retail Trends and Sentiment

• Retail Trends

1. ORV Premium and Utility continue to grow

1. ORV Recreation down for six quarters in a row

• 1. Elevated promotions that began in Q4'23 are expected to continue
• Dealer Sentiment
• 1. Early excitement around Indian Scout and MY'25 RANGER; products shipping in the second quarter

1. Frustration over broad industry issues related to margins, flooring interest, inventory and retail

ORV Recreation and Utility Retail

In Units

1. Q1'24 Polaris dealer inventory is flat sequentially
2. • Actively driving down inventory in weaker categories
     • RZR, Snow and Marine
   • Elevated Snow inventory given weak season
   • Dealer inventory down sequentially ex Youth, Polaris XPEDITION and
     RANGER XD

1. Actively working with dealers to help manage inventory o Heading into peak seasonality

Disciplined Approach to Dealer Inventory Given Current Levels and Trends

Q1'24 Earnings 4/23/24

4

New Products: Indian Scout and RANGER

Q1 2024 Financial Results

Sales

$2,180

$1,736

Adjusted* EBITDA

Margin

10.9%Margin

6.3%

Financial Highlights (Y/Y)

• Quarterly sales of $1.7B, down 20%

• 1. Lapping channel fill in Q1'23
  1. Difficult Snow season
  1. International sales down 13%
  1. PG&A sales up 3%
• Adjusted* EBITDA margin down 459 bps
• 1. Unfavorable net price, warranty expense and finance interest

1. Partially offset by favorable operating costs despite volume deleverage

• 1. Negative 90bps FX impact
• Adjusted* EPS of $0.23, down 89%
• Other items:
• 1. Net interest expense of $32M

1. Average outstanding diluted shares ~57M
    Down ~1% year-over-year

Results Within Expectations Given Year-Over-Year Headwinds

6

Retail Trends Remained Consistent | Operations Continue to Improve

Indian Motorcycles Continues to Gain Share | On Road Margin Expansion Continues

Additional Progress with Dealer Inventory While Taking Share

Financial Position

Operating Cash Flow

$ in millions

2024 Capital Deployment Priorities

#1 Priority - Organic Investment

Lighter capex spend in 2024

#2 Priority - Dividends

Dividend Aristocrat - 29 consecutive years of raising dividend

#3 Priority - Share Repurchase

Repurchased 1.6 million shares for $179 million in 2023 Repurchased 4.4 million shares for $505 million in 2022 ~$1.2 billion remaining on share repurchase authorization

Adjusted* Free Cash Flow

$ in millions

Key Financial Metrics

$ in millions

Expect Cash Flow Generation to Ramp Beginning in the Second Quarter

10