Of special importance in fiscal 2001 were two major projects that were completed as part of the Company's strategic realignment: the divestment of the chemicals business Cognis and the sale of Henkel's interest in the European joint venture Henkel-Ecolab (industrial and institutional hygiene). Henkel thus evolved from a "Specialist in Applied Chemistry" to a company whose future rests on two solid pillars: strong brands and advanced technologies.

In realigning itself, Henkel has structured its portfolio into four business sectors. In addition to the well-known Laundry & Home Care and Cosmetics/Toiletries sectors, a third brand business sector has been established: Consumer and Craftsmen Adhesives. The fourth business sector, Henkel Technologies, unites the industrial businesses of Industrial Adhesives, Engineering Adhesives, and Surface Technologies.

Cognis was sold to a consortium of investors in November 2001. A crucial factor behind the sale was that it will enable Cognis to expand its business with international manufacturers of detergents, household cleaning products and cosmetics and to enhance its development potential. The Henkel-Ecolab joint venture was terminated through the sale of Henkel's stake to its American partner Ecolab. Combining the two businesses into one worldwide company is strategically important in order to better meet the needs of global customers.

The statistics in the "Production" and "Indicators" chapters include the data of the divested companies Cognis and Henkel-Ecolab until the end of 2001.