Authentic. Integrated. Innovative

Authentic. Integrated. Innovative.

©2007,Golfsmith Int’l Holdings, Inc. 2

Golfsmith International Holdings, Inc.Safe Harbor Statement

Under the Private Securities Litigation Reform Act of 1995

Safe Harbor

Our presentation includes, and our response to various questions may include, forward-looking statements about the Company’s revenues and earnings and about our future plans and objectives. Any such statements are subject to risks and uncertainties that could cause the actual results and the implementation of the Company’s plans and operations to vary materially. These risks are discussed in theCompany’s fillings with the S.E.C., including, without limitation, the FORM S-1 filed June 1, 2006.


Investment Highlights

• Longstanding recognized retail brand

• Leading multi-channel golf and tennis retailer

• Differentiated mix

• Flexible cost-effective infrastructure

• Significant growth strategy

• Proven activity-based store model

• Established direct channel

• Experienced leadership


U.S. Golf Market Opportunity

Market dynamics:

• Retail purchases moving from on-course to off-course specialty stores

• Highly fragmented landscape

• Growth through gains in market share

$2.0

$1.4

$0.5$0.8

$1.3

Apparel, footwear & gloves Bags, carts & other equipmentGolf Clubs BallsOther (gifts, accessories, clubmaking services)

$6 Billion Addressable Market($B)

Source: National Golf Foundation.

Opportunity: Consolidate fragmented golf retail market


Our Guests

• Avid golfers – 25+ rounds of golf a year – 23% of all golfers – 63% of all golf-related purchases

• Key growth segments include:– Baby Boomers

• increase 30% between 2000 –2010

• 55% are avid golfers– Juniors – fastest growing segment– Women – second fastest growing

segment


Growth Strategy• Expand store base

– 65 stores in 21 markets, 16 states – Add 12-14 stores in 2007

• Grow direct channel

– Scalable Internet business– Expanding catalog titles

• Increase same store revenues, while growing profitability

– Continued focus on activity-based stores– Grow women’s, tennis and services businesses

• Grow with discipline

– Metrics driven– Experienced management


Performance.

Integration.• Multi-channel retailer:

stores, catalogs, Internet • Cohesive marketing• Flexible, centralized

infrastructure to support growth

Authenticity.• 40-year history of

delivering superior guest service

• Direct channel foundation

• Time-tested relationships with guests, industry partners

• Comprehensive product offering of premiere brands

Innovation.• Differentiated in-store

experiences • Relationship-driven

guest initiatives• Complementary

tennis offering

Leadership through …

Golfsmith | Authentic.


$358MRevenues

67 75 95 98 02 03 04


A Brick by Brick Growth Story

06 >

First Superstore



Experienced Multi-Channel Management

• Jim Thompson, President & CEO

• Ginger Bunte, Sr. VP & CFO

• Fred Quandt, Sr. VP – Merchandising

• Dave Pritchett, Sr. VP – Store Operations

• David Lowe, VP – Brands & Golf Instruction

• Jeff Sheets, VP – Research & Development

• Kip Miles, VP & CIO

• Matt Corey, VP – Marketing

• Trent York, VP – Finance

• Gill Felix, VP – Human Resources

• Joe Kester, VP – Store Operations

Years of Golf/Retail Experience

PreviousExperience

22

12

10

18

19

24

20

13

Circuit City, CompUSA, Highland Superstores

Coopers & Lybrand

Golfsmith International

Galyans

Spalding/Ben Hogan, Golfers Warehouse

10

16

Wilson Sporting Goods, Spalding/Ben Hogan, Founders Club, Brunswick Golf /Royal Precision

Office Depot, K-Mart

The Home Depot, The Bombay Company

Ernst & Young

Hoovers, Virgin Retail London

Foot Locker, Sportmart, Golfsmith International20


Differentiated Mix


• Leading National Brands

• Proprietary Brands

Golfsmith | Integrated.


Stores65 stores

Numerous expansion opportunities

Successful activity-based stores

Multi-channelModel


InternetRanked #1 site in golf

Integrated with stores, catalog

CatalogsDominant player in segment

Added tennis in ’06

Brand extender


National Reach

Store presence in 13 of top 15 golf markets; direct presence nationally.


65 Existing Stores

• Major golf markets

• National footprint

• 2007 plans secured

• Regional competition

• Consolidating national landscape

• Catalog leads brand awareness






Custom Club Fitting Online

Internet Business

Golfsmith.com

• Rated #1 site in golf by avid golfers (Source: Golf Datatech)

• Rated Top 10 site for customer service (Source: eTailing Group)

• In-house development, hosting and fulfillment

• Innovative services – custom fitting, in-store pickup, product reviews and more

• Strategic partners– ESPN, Amazon, Google

• Highly scalable

• Recently launched Golfsmith Travel and Tee Times services

First tee and BAM right down the middle. No reason to move the weights! This club is workable and forgiving. I can’t wait to play around with the weights and …

Customer Ratings and Reviews



Catalog Business

• Golf’s catalog pioneer –40 years

• Proven brand extender• Key component of multi-

channel


• Drives Internet commerce• Supports specialization

– Drive

– Tennis


Retail End-caps –Club and Ball

CatalogsMichelle Wie

Iron Wall Callouts

Competitive Advantage –Marketing Brands Across All ChannelsExample:

InternetBranding

Email Marketing



Flexible Infrastructure

Scalable, cost-effective, capable of supporting growth strategy


Golfsmith | Innovative.


Guest-First Platform

• “Caddy For Life”

• Innovative Guest Services

• “Player Rewards” Loyalty Program



Activity-Based Stores• Since 1995• Indoor driving ranges already in

25 stores (expanding)• Hitting bays in all others• Expansive putting greens• Large demo club assortment• Expert custom fitting

– Proprietary SmartfitTM systems– VectorTM launch monitors

• Club repair services• GolfTEC – staff of PGA Teaching

Pros



Tennis: A Complementary Offering

• Opportunity to consolidate a fragmented market

• In 45 stores at end of 2006

• Projected to be in at least 57 stores by year end 2007

• Expert tennis stringers in stores

• Fits strategically with focus on women and apparel

$1+ Billion Market


Women represent 53% of the market

and 63% of the spending.

Apparel and footwear represent65% of sales.

Total participation increased 5% in 2005 to 24.7 million.

Frequent players increased 9.6% in 2005 to 5.2 million.

Source: Tennis Industry Association, National Sporting Goods Association, US Tennis Association.


Special Events that Energize a Brand

Rather than a ribbon-cutting ceremony, John Daly smashed a golf ball through a replica of our front doors

Some 500 people lined up to see the new store

Manhattan Grand Opening 6-20-06



NYC Street Slam 8-24-06On the afternoon of August 24th, traffic came to a standstill on 54th and Lexington in Midtown Manhattan as the world’s top two ranked men’s tennis players took to the streets as part of an exhibition to grow Golfsmith’s tennis brand awareness.

Located just outside of the Golfsmith Golf & Tennis Manhattan store, more than 1,000 New Yorkers gathered to watch Roger Federer and Rafael Nadal play tennis just prior to the start of the 2006 US Open.


Golfsmith | Performance.


Continued Strong Store Growth

2638

4652

2002 2003 2004 2005 2006 2007E

62

74-76

# of stores

CAGR: 26%

CAGR: 19 - 21%



New Store Model

Model Store Investment* (dollars in thousands)

Net Capital Expenditures $ 600

Net Inventory Investment $ 400

Pre-opening Expenses $ 150

Net Cash Investment $ 1,150

Open Open +1 Open +2 Open+3

Total Sales (MM) $2.6 $4.3 $4.7 $4.9

Comp % 17% 9% 3%

Cash Contribution ** 0% 10% 12% 13%

Cash ROI 0% 38% 51% 55%

*Capital expenditures vary by market and condition of property received from landlord. Inventory is net of AP.**Assumes a May average opening. Contribution excludes pre-open, depreciation and corporate overhead allocation.



Comparable Store Sales Growth


0.0%

2.0%

4.0%

6.0%

8.0%

7.4% 0.7% 2.6% 2.0%

2003 2004 2005 2006


Golfsmith Financial Highlights($MM)

2004 2005 2006* Q405 Q406 Revenue $296.2 $323.8 $357.9 $ 71.8 $ 75.0

Gross Profit 101.2 115.8 125.8 25.3 25.9% margin 34.2% 35.7% 35.2% 35.2% 34.5%

SG&A $ 90.8 $ 99.3 $ 112.5 $ 24.5 $26.2

Operating Income (Loss) 9.7 14.7 15.0 0.7 ( 0.6)

% margin 3.3% 4.5% 4.2% 1.0% ( 0.9%)

* Excludes $3.4 million charge related to the termination of management consulting agreement with First Atlantic Capital and stock option charge associated with the IPO.



Preliminary Estimated First Quarter Results*

• Q1 Revenue $77.6 million • Q1 Comparable Store Sales negative 5.7%• Q1 Loss per share $0.32 to $0.31

Full Year 2007 Outlook

• 2007 Revenue $417 million to $430 million• 2007 Comparable Store Sales 1.5% to 3.0%• 2007 Earnings per Share $0.69 to $0.79


* Based on preliminary results announced on April 23, 2007


Golfsmith Growth Opportunities

• Top-line growth:

– Roll-out of 12-14 new stores in 2007

– Initiatives to increase existing store traffic

– Expand & leverage direct channel

• Margin expansion:

– Leverage distribution infrastructure and fixed overhead

– Growth of higher margin proprietary business



• Longstanding recognized retail brand

• Leading multi-channel golf and tennis retailer

• Differentiated mix

• Flexible cost-effective infrastructure

• Significant growth strategy

• Proven activity-based store model

• Established direct channel

• Experienced leadership

Why Golfsmith?


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Authentic. Integrated. Innovative