Annual Report

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Those who lead Carlos F. Novella Foundation’s efforts along with their teams, became an example of commitment, courage and perseverance throughout this year. In 2021 they managed to serve and sustain more than six thousand people’s participation, mostly women, young people, and children, as well as adapting their

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Cecilia PresidentDoughertyofCarlos F. Novella Foundation

care and support-providing models. They continued transforming lives by providing solutions throughout different forms of commitment and searching for solutions. We have been serving three regions for many years, but in the past year we expanded to other territories, both in person, and taking advantage of virtual delivery. On the other hand, we began implementing the 2021-2025 strategy focused on serving three major groups: Children, Youth, and Sustainable Communities. We are convinced that achievements must be systemic, integral, and shared in everything we do. For this reason, we encourage strategic alliances that strengthen our impacts. In addition, we rely on constant support and collaboration from Progreso’s different business units, a support that we highly value. The Board of Directors is grateful and proud of how Fundación Carlos F. Novella’s collaborators responded to challenges posed by new scenarios and needs, with dedication, speed, and creativity; also, how they showed model behavior as they upheld our values, which is the best way to spread them.

This is how we remain committed to taking advantage of everything we’ve learned. In addition to giving our best effort to accompany people on the challenging and exciting path of personal transformation, while building a better society together.

The 2021 Annual Report is a testament to Carlos F. Novella Foundation’s teamwork. In it, we reflect upon the work carried out by each and every one of our collaborators, who execute the programs which benefit entire communities, making a difference for children, youth, and adults.

All our efforts found in this report not only reflect our strategic focus, which is used in our activities and programs, but how it impacts different target groups.

MANAGEMENTEXECUTIVEFROM

LETTER

For this reason, our activities are focused on three strategic segments:

SUSTAINABLE COMMUNITIES: Generating social and material value chains for environmental sustainability. Our programs achieve their goals thanks to the genuine interest of those who materialize them: collaborators, teachers, technicians, coordinators, directors, and managers, who add value to the efforts in building together the country where we want to live. Our programs include: Pre-school teachers training, Cimentando Las Bases (Cementing the Foundation), Mejores Familias (Better Families), Paso a Paso (Step by Step), ENA School, Music School, Socio-sports School, Mathematics Teaching Certificate, Technical and Technological Classrooms, CENCA, Independent Courses, La Factoría Ciudadana -LFC-, and Construcción Ciudadana (Citizenship building). Historically we have worked on violence prevention and capacity building for creative and peaceful conflict management. In 2021 we added value by promoting a tertiary violence prevention program in strategic alliance with La Factoria Ciudadana of El Salvador, sponsored by USAID, with a target audience of former prisoners and migrant/ returnee population. Personnel from the 17 municipalities of the department of Guatemala, within the Departmental Strategy for Conflict Support’s (EDAC, by its acronym in Spanish) framework, participated in workshops. This was done at the request of the Department of Guatemala’s Governorship’s Community Violence Prevention Unit (UPCV, by its acronym in Spanish), and the Ministry of the Interior’s third Vice Ministry for Violence and Crime Prevention. On the other hand, individual events were held to promote values which support artists in the face of the pandemic-caused crisis.

YOUTH: Promoting skills and values in young people and adults, as protagonists of their own development.

I thank each and every member of the Carlos F. Novella Foundation team. This report is a testament to every hour invested, every step taken, and every person benefited. This proves that we are agents of change, transforming our environments to become a better country. Victor Ayala O. Executive Director Carlos F. Novella Foundation.

CHILDHOOD: Contributing to comprehensive child development with friendly and safe environments.

FROM ORIGINSOUR

Our founder, Carlos Federico Novella Klée, was a visionary who introduced the manufacture of cement in Guatemala when not much was known about this material.

Nor were the conditions of the time conducive to developing this industry. The tireless effort of our founder is what inspires us every day to achieve the purpose: “To build together the country where we want to live.”

Carlos Federico Novella Klée, founder, was characterized as a family man concerned with establishing harmonious relations between the company and society. His high sense of social responsibility and constant concern for the well-being of employees and their families is one of his main business legacies, which 123 years later remain valid.

The Carlos F. Novella Foundation was created on March 12, 1986, as a channel for the Novella family to continue its founder’s legacy, and build together the country where we want to live. With a grassroot development focus, the Carlos F. Novella Foundation strengthens individual and collective capacities by incorporating elements such as education, and systematic training. Through these efforts people become agents of positive change in their families and communities, as well as protagonists of their own development. The foundation works hand in hand with communities, supporting processes from early childhood to adulthood. It implements activities and processes, independently or in coordination with the social area, or other Progreso business units. This supports education, training, health, music programs, sports, and creates participatory and responsible citizenship.

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STRATEGIC GUIDELINES REPRESENT OUR VALUES BEST ALLY FOR GENERATIONCAPABILITY

We are committed to living and conveying values for positive environment transformation. We believe in principles, written in our code of values, ethics, and conduct, COVEC.

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We provide permanent support to people and communities searching for solutions to the challenges they face, seeking capability transfer and development. To this end, we establish longterm partnerships to achieve our objectives.

from 0 to 5 (191) from 41 to +from(574) 13 to 17 (1,830) from 6 to 12 (1,511) didn’t specify age (264) from 31 to 40 (833) from 18 to 30 (1,227)

FCFN NUMBERSINDURING2021 BY TERRITORY (MAIN SITE AND MUNICIPALITIES) BY AGE BY GENDER PARTICIPANTS COMPLETED THEIR LEARNINGMenPROCESSES.Women a. c. bd.. 28%9%6,4302,5073,92339%61%3%23%4%13%19% By 2021, the Antonio(Sacatepéquez),SantoJilotepeque(Quetzaltenango),includingtogeographicalbenefitedareaextendedmorethan3territories,ValledePalajunojSanMartín(Chimaltenango),DomingoXenacojandSanLaPaz(ElProgreso).

The implementation of the programs will be carried out face-to-face, virtual and hybrid.

POR TRANSVERSALTEMAe. 3,158 1,604 1,668 CHILDREN YOUTH SUSTAINABLE COMMUNITIES

VISIONSTRATEGIC

• Our 2021-2025 strategy confirms that our activities are focused on capability development, and strengthening guiding principles through training which contributes to a positive transformation of the environment by: Heading Children and Addingyouthvalue to generate communities.sustainable

FOCUS ENVIRONMENTSANDINANDFORDEVELOPMENTCOMPRHENSIVEONBOYSGIRLSFRIENDLYSAFE CHILDHOOD

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591 “THE for“BuildingFOUNDANTIONCEMENTINGBOYSABILITIESEMOTIONALMOTOR,COGNITIVE,IMPROVESPROGRAMANDINANDGIRLS”thepresentchildhood” El Progreso, San Juan Sacatepéquez, Zone 6 BOYS AND GIRLS Completed their training during 2021

During childhood, children develop skills and abilities through training, and the necessary stimulation to strengthen learning processes. The program serves children in early education, preschool, and first grade through reinforcing and building their reading processes. It generates thinking structures and competencies that promote success for first grade. In order to strengthen our support to our 0-4 year-old children target population, we partnered with the Ministry of Education (MINEDUC by its acronym in Spanish), in 2021, to implement the Acompáñame a Crecer program. Acompáñame a Crecer develops and educates communities about nurturing early childhood development. It serves mothers with children under 5 years of age, pregnant women, and caregivers; it provides comprehensive child development strategies. Local leaders identify who would become strategy promoters and Theimplementers.appropriate conditions were implemented in 8 communities belonging to El Progreso and San Juan Sacatepéquez, to foster Community Centers for Comprehensive Early Childhood Care (CECODIT by its acronym in Spanish). These centers provided trainings for ‘teaching mothers’ as well.

CHILDHOOD

Katherine is 8 years old and she attends second grade at the coeducational Public School Colonia Sonoro, Sanarate El Progreso. The diagnostic evaluation showed that she had low reading ability and a lack of reading fluency, i.e., slow reading. In addition, she didn’t identify all the consonants, to the point of stagnating in reading syllables or words. This reading and writing deficiency also affected her mathematical abilities, with difficulties in identifying numbers, understanding space and time, confusing days of the week, and the positional value regarding months within the calendar. During 2021 she participated in the program, and thanks to constant practice, she improved her reading and writing skills, as well as generated good reading habits and skill stimulation.

KatherineFOUNDANTIONSCEMENTINGLópez

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596THETOOLSKNOWLEDGEWITH“TEACHERSGREATERANDTOUSEINCLASSROOM” TEACHERS Completed their training during 2021. TRAININGTEACHERSPRE-SCHOOL El Progreso y San Juan Sacatepéquez. “Building the present for childhood”

CHILDHOOD

By applying the Cimentando las Bases Model, the program generates new teaching strategies for teachers and reinforces adequate competencies that benefit comprehensive child development during the initial and pre-school stages. In 2021, the program Building the Childhood Present impacted more than 11,000 children who were assisted by trained teachers.

The use of multimedia resources and virtual communication tools such as Apps, forums, e-mails, Whatsapp groups, and webinars allowed remote interaction with teachers during the training stage.

MagalyTEACHERChamalé

Magaly Chamalé works at the Bilingual Pre-School Official Center, next to the co-educational regional public school Comunidad Ruiz. Magaly prepares her creative teaching material with great effort and dedication. Thanks to the program, she has been able to develop a virtual methodology with innovative educational strategies that facilitate the student’s commitment to their education. Thanks to her training she feels confident preparing and delivering workshops. She has also fostered family communication among her students, and has created a space to provide and receive feedback on her work.

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885“FOOD SECURITY AND FAMILIESBETTEREMPOWERMENT”WOMEN’S El Progreso, San Juan Sacatepéquez PARTICIPANTS Completed their training during 2021

AGRECA (Progreso) collaborators also benefited from this methodology. Capability development is being implemented, beginning with three training modules for monitors and six thematic axes for two groups; one in Quetzaltenango and another in a Suchitepéquez community. Progreso’s social area contributes to the Jardines Vegetales (Vegetable Gardens) program. Carlos F. Novella Foundation technicians taught members of the program how to prepare nutritious meals from vegetables planted in family gardens they grow.

INFANCIA

This program is aimed at women who have reached a reproductive age. The beneficiaries are trained in food and nutritional security, proper food handling, and preventive health. In addition, women are empowered as agents of change. In 2021, it became evident that the participants and their families improved the food quality of what they ate. They also recognized the importance of complementary feeding starting at 6 months of age. It was noted that 100% of the participants are more aware of the importance of preventive health, and of medical check-ups for themselves and their families. At the participant’s request, we returned to the on-site modality. Considering that they would have a better learning experience, capacity control was established to avoid COVID-19 infection.

FAMILIESBETTERJenniferMorán

At the end of 2020, 33 year old Jennifer, resident of Colonia Sonoro, joined Mejores Familias in Sanarate, El Progreso.

A home visit was recommended due to her son Juanito’s nutritional problems. Due to the results of an anthropometric diagnosis, Jennifer was given nutritional recipes and good hygiene recommendations for food preparation. She agreed to follow them to improve Juanito’s health. Thanks to Jennifer’s perseverance, Juanito gained two pounds the following month. Eight months later he was out of nutritional difficulty because his mother put the program’s recommendations, as well as weight and height controls into practice. The road to Juanito’s recovery was made possible thanks to Jennifer’s commitment and the Mejores Familias technicians guidance. This is how the Mejores Familias program not only transforms, but also saves lives.

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32MATHEMATICS”LEARNINGBOOST“IMPROVEMENTIN TEACHERS Completed their training during 2021. CERTIFICATEMATHEMATICS Virtual Mode

JUOUTH

The Mathematics Certificate improves how high school teachers learn and teach mathematics. It creates capacities in teachers and youth through educational guidance in the classroom. During 2021, teaching material preparation skills were strengthened, making the student’s experience more pleasant and increasing their willingness to learn. According to the portfolio presented by the teachers,80% successfully applied digital tools and training methodologies received in the classroom. In addition, the course enabled teachers to improve their leadership, planning, and time management skills.

Cristina Cotzajay, a resident of San Juan Sacatepéquez, says that what she learned in the program allowed her to develop innovative material that contributed to improving her teaching, and the student’s learning experience. What she liked most was how the teachers used different tools remotely to fill classwork with play. The course is divided into two phases. First, one to apply the content learned to their current environment, which allowed for a very valuable teacher experience exchange. Second, an exercise where the participant’s math knowledge was reinforced.

CristinaCERTIFICATETEACHINGMATHEMATICSCotzajay

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218SCHOOLMUSICDEVELOPMENT”FORAWHILETRANSCENDS“MUSICBEINGVEHICLEPERSONAL PARTICIPANTS Completed their training process during 2021. Zone 6

CHILDHOOD YOUTH

In 2021, virtual classes allowed the school to expand their coverage beyond zone 6 and Chinautla.

This school encourages children and adolescents (up to 17 years old) to learn music, make good use of their free time, and practice guiding principles with positive output for their family and community.

It had students from El Progreso through the successful pilot project “Coro Virtual” (Virtual Choir). As part of a school teacher’s supervised practical exercise – EPS by its acronym in Spanish -, a group of student’s mothers received online violin classes. A Chamber Music Festival was held as part of the Independence Bicentennial framework. More than 60 students, from around the country’s different musical institutions attended. The festival included 8 virtual master classes, and 12 lectures were given by 10 renowned national and 16 international maestros. Seventy-five online concerts were held, reaching more than 800 people In December of 2021, during the Christmas float parade, a concert was organized in conjunction with the Auxiliary Mayor’s Office of Zone 6. Students were able to display their musical talent and knowledge with the neighbors.

MUSIC SCHOOL Winter

His interest in music led Winter to actively participate at Carlos F. Novella Music School since 2018, despite residing in a highly socially vulnerable area. In 2019 he joined the Guitar Orchestra, demonstrating high performance in his classes and above all, consistency and dedication at all times.

Hernández

Two years later, he finished his studies at the School of Music, while studying for his college degree. Despite the schedule difficulty along with integrating both career and musical studies at 18 years of age, he never gave up following his musical passion and professional interests. At the end of 2021, he took his final exams obtaining outstanding results. In addition, he obtained a degree in Popular Guitar from the Carlos F. Novella School, accredited by the Ministry of Culture and Sports of Guatemala.

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909CHILDRENFORPOSITIVE“PROMOTINGVALUESGUATEMALANYOUTH” El Progreso , San Juan Sacatepéquez , Zone 6 CHILDHOOD YOUTH Completed their training during 2021. SCHOOLSOCIAL-SPORTS 586 323 from 4 to 12 a. from 13 to 18 a.

The school provides a space for children and adolescents (between the ages of 5 and 17) to learn guiding principles and interpersonal development. It advances sports skills in different areas such as: social, tactical-technical, physical-motor, and regulatory. This has a positive impact on their entire education. Despite not having any physical activity due to COVID 19 preventive measures, the participants practiced sports for one to three hours a week.

During the training sessions, the Real Madrid Foundation methodology was applied. Students were motivated to continue practicing physical activity in their free time. In addition, self-esteem, autonomy, equality, respect, companionship, health, and motivation were developed. The Carlos F. Novella Foundation partnered with the Real Madrid Foundation as well as Millicom Tigo. Together, they developed workshops for teachers from the Socio-Sports Schools and other programs belonging to the Foundation. These workshops focused on developing their technological skills, as well as learning about the responsible use of the internet and social networks.

CHILDHOOD YOUTH

At age 11, Martita joined the U12 category at the Socio-Sports School. In 2014 she stood out thanks to her discipline, respect, and solidarity, both in training and extra-court activities. This earned her the opportunity to travel to Spain in November 2017, to a sports practice at the Real Madrid Foundation headquarters. She is currently in her third year of a five-year Bachelor’s degree in Physical Therapy at Mariano Galvez University. To complete her curriculum, she is interning at the National Hospital of Amatitlán. She also began collaborating with the school to provide it with a physical therapy plan to both Socio-Sports School parents and students. She wants to make the most of all the knowledge learned and gain work experience to set up her own clinic and financially support her family.

MarthaSCHOOLSOCIAL-SPORTSChacón

HEALTHGOOD WELL-BEINGAND EQUALITYGENDER PEACE INSTITUTIONSJUSTICE,ANDSTRONG THETOPARTNERSHIPACHIEVEGOAL

“GIRLS THEIRINBECOMEADOLESCENTSANDLEADERSTRANSFORMINGLIVES” Zone 6, El Progreso San Juan Sacatepéquez. Santo Domingo Xenacoj STEP BY STEP 148 CHILDHOODSTUDENTSYOUTH Completed their training during 2021. 68 80 from 9 to 12 a. from 13 to 18 a.

Partnerships were made with municipal, educational, and religious authorities. This not only allowed the program to extend to other municipalities, but also helped girls, youth, and parents to achieve constant and significant participation.

The school develops skills and habits that strengthen psychosocial aspects in girls and adolescents ranging between 9 to 14 years old. They are made aware of their leading role in generating positive changes at a personal, family, and community level. During 2021, given the importance of this process for girls and adolescents, the program extended to Santo Domingo Xenacoj and San Juan Sacatepéquez municipalities. The program was completed by 100 participants at these locations.

CHILDHOOD YOUTH

STEP STEP Ana Aracely Fajardo

10 year old Ana Aracely joined the Paso a Paso program in 2021. She attends the fifth grade at the Co-educational public school Oscar Arnoldo Conde in Sanarate, El Progreso. Ana is registered in the program, under hybrid modality. She is always on time, responsible, a good peer, and participates a lot in class. Her mother, Mrs. Ana Sajbin, says that the classes have helped her daughter become responsible, organized, and help at home. Her personal hygiene habits have improved, she is able to communicate better, and is always ready to connect to the program on Thursdays.

BY

HEALTHGOOD WELL-BEINGAND EQUALITYGENDER THETOPARTNERSHIPACHIEVEGOAL

440TRANSCENDS”LEGACY“EDUCATIONALTHATENASCHOOL El Progreso, San Juan Sacatepéquez STUDENTS CHILDHOOD YOUTH Completed their training during 2021. 295 145 from 5 to 12 years old from 13 to 17 years old

In 2021, under the virtual modality, Google for Education digital tools were used to facilitate effective communication, teaching material publication, and communication with parents. The graduating students of the school based in San Miguel, El Progreso obtained a perfect score (100%) on their Academic Aptitude Tests. The results are evidence of ENA School’s academic excellence, which was sustained despite the pandemic.

Three graduates obtained scholarships for higher education, which were awarded by: Juan Bautista Gutiérrez Foundation, Educación Suiza Foundation, and Universidad del Valle de Guatemala Foundation; joining other students from previous graduating classes who are already in the middle of their careers thanks to their scholarships.

The “Enrique Novella Alvarado” Private School (ENA) is an educational center managed by the Carlos F. Novella Foundation, and sponsored by Cementos Progreso. It offers an alternative educational opportunity to the San Miguel and San Gabriel plants employees’ children, as well as neighbors of the surrounding communities.

CHILDHOOD YOUTH

“ENRIQUE NOVELLA ALVARADO” PRIVATE SCHOOL

Diego Rivas

He began studying at the school when he was in 3rd grade. In 2021 he was part of the XIV high school graduating class. Diego stood out for his high academic performance, and has shown passion for art and knowledge. He represented ENA School in the regional Science Olympics and participated in school-promoted community outreach activities. As a result of his efforts and academic results, he was awarded a scholarship by the alliance formed by the Swiss Education Foundation, Universidad del Valle de Guatemala Foundation and PROGRESO. “The broad education I received at Enrique Novella Alvarado private school allowed me to earn a scholarship for Chemical Engineering at the Universidad del Valle de Guatemala. I’m grateful for ENA School’s staff support. It opened doors for me to continue with my educational training and fulfill my dreams.”

ALVARADO” EDUCATIONQUALITY EQUALITYGENDER THETOPARTNERSHIPSACHIEVEGOALS

YOUTH

COMMUNITIESSUSTAINABLE

315 “LIFE CENCAGRADETOREMEDIATION,LEVELINGEDUCATIONALTRAINING,THROUGHPLANSANDREACHLEVEL” El Progreso , San Juan Sacatepéquez STUDENTS Completed their educational program during 2021.

YOUTH COMMUNITIESSUSTAINABLE

“Life Plans Through Training, Educational Leveling and Remediation, to Reach Grade Level” is a flexible education model that allows people, who were excluded from the traditional education system, to complete their studies. This model includes job training in technical areas such as electricity, cooking, baking, and computers among others. In 2021, 152 students graduated from High School, with an emphasis on Entrepreneurship and Productivity; of which 67 were from El Progreso and 85 from San Juan Sacatepéquez. The program’s complete work plan continued online and a user-friendly platform was adapted for students and tutors to provide personalized follow-up. There was a high participation of women in independent technical courses such as electricity and mechanics, compared to male students in the same grade.

Student Nancy Pirir won 1st place in the High School Mathematics Olympics in San Juan Sacatepéquez, which was sponsored by the San Juan Sacatepéquez Municipality.

JuanaCENCAyCatarina

Lux

At the end of the 2021 school year, Juana and Catarina, through hard work and academic dedication, were named flag-bearers for the 11th grade. In 2022, they are both determined to graduate with honors.

Despite the effort that their job requires, they are motivated to study because it will make their lives better.

Despite having few resources, sisters Juana and Catarina Lux, 21 and 22 years old, have been able to continue their High School Studies.t They make and sell tortillas for all three meal times.

Juana Lux Catarina Lux EDUCATIONQUALITY EQUALITYGENDER THETOPARTNERSHIPSACHIEVEGOALSCOMMUNITIESCITIESSUSTAINABLEAND

REACH”WITHIN“TECHNOLOGYYOUTH’S El Progreso , San Juan Sacatepéquez TECHNICAL CLASSROOMSTECHNOLOGICALAND 943 STUDENTS Completed their educational program during 2021.

YOUTH

COMMUNITIESSUSTAINABLE

This initiative complements formal basic education training at public high schools. It focuses on developing skills for technical, technological, competencies as well as skills and competencies required for the 21st century. Due to the pandemic, schools closed and transferred to virtual learning, which posed an enormous connectivity problem. ADA, an element that generates Wi-Fi coverage without data consumption, began operating in 2021 to solve for it. ADA was also implemented in a program called Learning Islands. Nineteen flower growers in San Juan Sacatepéquez were provided access to technology, improving their production and commercial opportunities.

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TECHNICAL

Damaris created a labyrinth, where the player would take a tree and move it from the entrance to the exit without touching obstacles made with fire. She chose a tree as the main character to raise awareness about the importance of taking care of the environment. She was one of the most dedicated students. She practiced solidarity by motivating her classmates to continue learning and finish their studies.

Damaris is 16 years old and a 10th grade student at Telesecundaria (Television Highschool program) Cruz Verde, San Juan Sacatepéquez. During the 2021 school year she was an active student and very interested in developing new skills. “The course was very good, our tutor explained with great detail and it was easy to understand. For this reason, it was easy for me to do the practice exercises and finish my project. My biggest challenge was programming, but I did it.”

EDUCATIONQUALITY EQUALITYGENDER THETOPARTNERSHIPSACHIEVEGOALS

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GENERATIONVALUE&MATERIALSOCIALCHAIN

LEADERS”ENTREPRENEUR“FORMING San Juan Sacatepequez.: Finca San Antonio, Finca El Pilar, Centro Educativo Estuardo Novella Camacho COURSESINDEPENDENT 315 PARTICIPANTS Completed their training process during 2021.

Entrepreneurship development benefits from fostering differentiated capabilities and technical competencies. The partnership among INTECAP, Ministry of Education, Department of Extracurricular Education, and Municipal Centers for Training and Human Development, CEMUCAF -by its acronym in Spanish- certifies courses. In 2021, following the municipality’s COVID control restrictions (traffic light system), on-site and remote courses were offered. This flexibility allowed existing entrepreneurships to be strengthened and the emergence of new ones. All participants (100%) were certified. In response to the interest of surrounding communities, a new headquarters was opened in Finca El Pilar. The courses provided are: customer service, etiquette, floral arrangements, gardening, and mushroom production. We continued with the online culinary courses through Cocinando en Casa (cooking at home), producing 22 videos that reached more than 275,000 people throughout the year.

SUSTAINABLE COMMUNITIES

Melvin Oseas Chajón

INDEPENDENT COURSES

Melvin is 21 years old, lives in San Juan Sacatepéquez and used to work as a delivery man for a glass shop. In 2019 he began studying welding through our three-year program, offered as part of our independent courses. Upon completion, the company he worked for hired him for a welding position as well as maintenance assistant. Noticing these results, he decided to specialize in welding.

During the middle of 2021, he invested in his own equipment and started a business. The job has not kept Melvin away from school. He aspires to continue training to improve his industrial welding techniques, and provide quality customer service to his clients.

EDUCATIONQUALITY EQUALITYGENDER THETOPARTNERSHIPSACHIEVEGOALSCOMMUNITIESCITIESSUSTAINABLEAND

Virtual (coverage of several departments in the country) and on-site processes (El Progreso, San Juan Sacatepéquez, Santo Domingo Xenacoj, Quetzaltenango, and zone 6). 797 GRADUATEDSTUDENTS CONSIDERATION,“AWARENESS,BUILDINGCITIZENSHIP TRANSFORMATION”AND

During 2021 the following projects were implemented:

• Citizen participation • Education for Peace • Educational Awareness • Institutional strengthening SUSTAINABLE COMMUNITIES

This program is about awareness, consideration, and citizen transformation. It promotes values, attitudes and behaviors that reject violence, express generosity, and strengthen peace. It also leads to the creative transformation of conflicts, through dialogue among individuals, groups, and institutions.

During 2021, EDUCAPAZ took place virtually and on-site. A total of 223 people completed the process. Participants im proved their analytic, discussion and con flict transformation skills to create an op portunity from conflict.

As part of the closing ceremony, 182 par ticipants presented their proposals to action for a peace promoting culture. After performing an analysis of how their proposals had affected their communities, they found that they indirectly impacted more than 370 people.

YOU AND I MAKE A DIFFERENCE is a citizenship building program for adolescents and young people to contribute to reducing violence reduction, recovering public spac es, and promoting peaceful coexistence and solidarity. In 2021, a new call for proposals was launched, with over 300 applications.

Dialogue skills were emphasized as an assertive relationship mechanism, in which participants developed the ability to apply situational analysis techniques and achieve creative conflict transformation.

TRAINER OF TRAINERS seeks to create educational awareness by teaching teachers and trainers to use participatory and collaborative strategies focused on 21st century capabilities. In 2021, we joined forces with various institutions to increase the academic sensitivity of teachers and trainers in the country. The institutions are: Community Violence Prevention Unit (UPCV by its acronym in Spanish), which belongs to the Ministry of the Interior Third Vice-Ministry of Violence and Crime Prevention, the National Youth Council, Habitat for Humanity Foundation Guatemala, and the Guatemalan Volunteer Center.

INSTITUTIONAL STRENGTHENING proj ect seeks to reinforce the way in which so ciety organizes itself so that citizens and groups can express their interests, resolve their differences, and exercise their rights and obligations. In 2021, strategic alliances were created with government and municipal authorities. Together they support the develop ment process action plan to increase edu cation awareness in teachers. This plan fell under the framework of the Departmental Strategy for Addressing Conflict (EDAC by its acronym in Spanish), with representa tives from 17 municipalities of the department of Guatemala. They partnered with the Departmental Government of Guatemala and the Community Violence Pre vention Unit of the Ministry of the Interior Third Vice-Ministry of Violence and Crime Prevention.

“One of the most important things I understood at EDUCAPAZ is that peace goes far beyond a concept. Peace is a way of life, it implies fundamental changes in our way of thinking, breaking paradigms, unlearning and learning. It’s not simply the absence of problems, it’s an entire culture of how we react to problems”.

EddyBUILDINGCITIZENSHIPMauricioCano

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11 3 8 PARTICIPANTSSERVED FEMALE MALE THE FACTORYCITIZEN“TERTIARYVIOLENCEPREVENTION”

SUSTAINABLE COMMUNITIES

Onboarding and training process included opportunities to learn about experiences and lessons learned from other organizations, including the Amity Foundation and Homeboy Industries. The Amity Foundation, established in 1969 in Los Angeles, California, is one of the most respected foundations in the field of tertiary violence prevention.

During that year, public institutions began coordinating activities together. Institutions included: The Ministry of Economy, Ministry of Culture and Sports, the Guatemalan Migration Institute, the Prison System, INTECAP, the Social Welfare Secretariat of the Presidency and the Ministry of the Interior. As for coordination with Non-Governmental Organizations, which have supported program work are: Confraternidad Carcelaria, Casa del Migrante, and Colectivo de Artesanas.

During 2021, the program’s technical team made a trip to El Salvador. There they had the opportunity to observe the various services provided, as well as lessons learned during five years of operation. These lessons learned are to be taken into consideration for implementation in Guatemala.

In 2021, the Tertiary Violence Prevention Program began, La Factoría Ciudadana GUA, in alliance with La Factoría Ciudadana El Salvador and USAID began working together. The main achievements throughout 2021 were: the creation of the technical unit, and providing psychotherapeutic care (individually or in a group) to 11 people.

This program focuses on providing genuine and responsible rehabilitation support. Those benefited are people who have had problems with the law, seeking individual transformation and strengthening their social and technical capabilities.

CARLOS F. FOUNDATIONNOVELLAVOICES

For me, the Carlos F. Novella Foundation is my home, my family. They are the ones who have helped me grow and develop as a person and professional.

Irene CursosGarcía.Libres

Ceferina CimentandoCruzlasItBasesbelongs to another family that cares about my wellbeing, health, personal and professional growth, where values are lived and transmitted. Mariedel Meléndez. Mejores Familias Collaborating with Carlos F. Novella Foundation is to feel at home, confident, and safe, generating respectful and transparent relationships, showing participants how to practice values through excellent service.

Constant transformation that humanizes and builds me up, while helping build dreams, desires, and achievements for children and young people who are society’s present and future. Beto DocenteEdvinEscuelaGeraldinaEscuelaHidalgo.deMúsicaGonzález.deMúsicaBocel.ColegioENA

Mónica Anleu. Cursos Libres It has been an opportunity to get closer to the communities and meet great people, to grow personally and academically. Thank you!!!! Celeste Argueta. Centro Educativo Estuardo Camacho

Being part of the Carlos F. Novella Foundation is living with passion, knowing that I can serve someone every day. Thank you Carlos F. Novella Foundation for believing and trusting my work. For all the support that you’ve given me so far. I still remember November of 2004, when I joined Enrique Novella Alvarado School. It has been almost 18 years of being a part of this educational institution.

ConstrucciónGuzmán.Ciudadana.Beingpart of the Carlos F. Novella Foundation means personal growth and satisfaction because I am providing a grain of sand, for a better country. Elisa MonitoreoArchila.yEvaluación ARE AGENTS OF CHANGE, WE ARE F. NOVELLA FOUNDATION

The Carlos F. Novella Foundation opened the doors for me to be part of this great family. My work has saved lives and transformed them. Today I can say that my life has also been part of those transformations.

Jorge EscuelaMorales.Sociodeportiva

Ericka EscuelaFigueroa.Sociodeportiva

WE

Lidia EscuelaSantos.SociodeportivaBeingpart of the Carlos F. Novella Foundation is certainly one of the best experiences, because my work positively impacts the lives of hundreds of people.

It’s my passion for service. Nelson

To be part of the Foundation is to participate in the construction of lives, dreams, a country, and a human project.

Gerber García. Aulas Técnicas y Tecnológicas

Olga Espinoza. Paso a Paso I feel fortunate to be part of the Carlos F. Novella Foundation.

CARLOS

Eren MejoresCalderón.Familias.

“Carlos F. Novella Foundation is my second home, it has helped me grow personally and as a family. I’ve made a name for myself in the communities, I’m a role model and example for the beneficiaries. I know that my work enables a significant change in children’s lives”.

Family that allows us to grow personally for the community’s benefit. Together, we are a great team.

CARLOS F. NOVELLA MUSEUM

The Carlos F. Novella Museum started as an initiative by the Novella’s family 4th generation to share Carlos F. Novella’s dream and legacy. It was inaugurated on March 18th 1999, serving as an example and inspiration for the Guatemalan people. It shows what one man dreamt and achieved with faith, perseverance, and work. For 22 years, the museum has been documenting 121 years of the company’s history. The documentary collection of the Carlos F. Novella Museum dates back to 1860. It constitutes an important cultural and historical heritage for not only the construction industry, but for Guatemala as well. It is also a space for learning, development, and entertainment.

“Carlos F. Novella Museum strengthens the company’s reputational communication, generating value through tangible and intangible management of its heritage”.

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During 2021, more than 1,300 people visited the museum virtually. Social media channels played an important role in sharing the museum’s history. In 2021, 10 articles were published for the Granito de Arena magazine, reaching more than 7,000 people. Our Instagram page now has more than 600 followers, and the company’s history was shared with them.

GUIDING PRINCIPLES AND SUCCESS DISSEMINATIONSTORIES

A WALTZ FOR MOTHERS Partnering with AGEXPORT’s Orange Economy Commission, the Waltz for Mothers was held to celebrate all Guatemalan mothers. Carlos F. Novella Foundation’s free concert was transmitted through Facebook Live, and reached more than 11,800 people. The event was shared by different embassy’s social networks, such as the U.S., Peru, Thailand, Indonesia and Ecuador. The charm and nostalgia awakened by each of the notes emitted by the brown keys of the marimba, as well as its unquestionable value as a musical instrument, made the event something very special for mother’s day.

CAMPAÑA CÍVICA “LAS HISTORIAS DE MI GENTE”

For the second consecutive year, the civic campaign was coordinated with Progreso’s corporate communications area to position our responsible citizenship component and COVEC values. The campaign was communicated through the Foundation’s various social networks, using a local celebrity as our brand’s ambassador to reinforce our principles. During the campaign testimonials from our various programs’ beneficiaries were included. This campaign strengthened ties with our target audiences, through activities that raised awareness about the Foundation’s work and its impact on participant’s lives.

RECIPES FOR A CHAPIN

A recipe booklet with Guatemalan dishes was shared with our Facebook community. This included: Guatemalan tostadas with tomato sauce, bread with Guatemalan style chicken, chambray tamales, and plantain atole.

As part of the Cocinando en Casa (cooking at home) program, Edwin Cruz, an Independent Course participant, shared the recipe for Cambray tamales. The program’s recording ended with former participants joining in the afternoon activities and enjoying Guatemalan dishes.

“Guatemala’s Bicentennial is celebrated with stories of chapines and organizations like @progreso and @ Fundanovella that work for our people’s development. It also celebrates a better GUATE with a good Pepián, because flavors are an important part of our history. Thank you Mirciny Moliviantis for bringing our country’s flavor to the world.” - Mujer Magazine

COOKING WITH MIRCINY MOLIVIATIS

As part of the Bicentennial of Guatemala’s Independence civic campaign, 21 renowned journalists from the national media were invited to participate and prepare a typical dish with Mirciny Moliviatis, chef and social media influencer. Chef Mónica Anleu, from Carlos F. Novella Foundation, also participated and shared her story of how she became a chef thanks to the Carlos F. Novella Foundation’s support. The guests themselves became brand ambassadors by posting their comments about the activity on their social networks.

AFTERNOON WITH FAMILY

Blocks of Love campaign closed in 2021 with hope and joy for 12 families of Progreso collaborators. They will benefit from receiving a well-built home. This will provide them with a better quality of life and opportunities. December is always a month to show solidarity and guiding principles practiced by the Progreso family. The Blocks de Amor campaign achieved this goal by raising 17,359 cement blocks, which will be used to build 12 homes for Progreso collaborators. The campaign was held on social media, especially through the Carlos F. Novella Foundation YouTube channel. “Blocks de Amor improves the collaborator’s homes and at the same time promotes the values found in the Code of Ethics, Values and Conduct, COVEC” Diana Reina from Together for your home.

BLOCK OF LOVE

CHRISTMAS 2021

Dani, our story’s lead protagonist, engages with the Moros dance tradition. At that moment, she begins her fantastic journey through the Christmas past and future. Arriving to the present, our protagonist encounters the reality of the pandemic, but finds in Guatemalan music and talent, many reasons not to lose hope and faith. Finally, she reaches the future where she finds an ecological city in which she discovers solar vehicles, efficient processes and, above all, a sustainable city like the one we dream of having. In total, more than 141,000 people attended this initiative, thanks to the dedication of the artists who participated in the show, and the Guatemalan families who enthusiastically enjoyed it as a family, making NaviDar a complete success.

The 2021 NaviDar (Christmas giving) event, turned into a grand display of hope and magic reaching thousands of Guatemalan homes, to happily and joyfully celebrate the start of the most beautiful time of the year. Once again, we partnered with Circo Batz and musical performances by German Giordano, Beto Hidalgo, Juanpi Granados, Ludwin Zepeda, and Leonel Hernández from the Old String band.

PARTNERSHIPSSTRATEGIC

During 2021, we strengthened ties with various public and private organizations to articulate, promote, and execute initiatives that have a national impact.

As members of the Board of Directors, we participated in several activities to promote nutritional wellbeing for Guatemalan children, and create policy changes that benefit children in rural areas. We do so by sharing experiences and activities as we implement the Help me grow program. In 2021 we joined the Board of Directors. The main objective of this partnership is to promote ethical company behavior and responsible capitalism. Corporate Social Responsibility (CSR) serves as a management system and sustainability as a goal.

Agro Progreso seeks to add value to Progreso units with agroforestry potential to develop profitable and sustainable projects.

Santo Domingo Xenacoj Municipality: Step by Step program was implemented, along with the Citizen Building Institutional Strengthening program. San Antonio La Paz Municipality: meetings were held to develop a socio-sport school. Zone 6 Auxiliary Municipality: several activities were carried out among which training for 45 conflict transformation and peace culture promoters stands out.

MUNICIPALITIES IN PROGRESO’S ZONE OF INFLUENCE

As part of this alliance it helps the La Ruta del Campeche project, programs to improve flower production quality, and an agricultural sustainability model with community neighbors. We permanently coordinate and work together to develop projects that will benefit the population.

With more than a decade-old partnership, we have supported community housing issues for low-income populations. In 2021, aside from donating, we provided funding for 43 houses for vulnerable families, benefiting 215 people located in the Xepatán, Patzún, community. We sponsored and organized the sixteenth edition of the Maestro 100 puntos award. The year began with a proposal to transform the award. Due to the pandemic its structure needed to change, therefore new aspects were added such as innovation and learning continuity in a virtual environment, education-support caused by distance learning, emotional health and hybrid Theprotocols.award ceremony was organized in a hybrid modality at Universidad del Valle de Guatemala (UVG). The Foundation was present through Gloria Novella de Urruela’s assistance to the ceremony.

EFPEM is an academic unit for Universidad San Carlos de Guatemala University. It provides professional training to teachers of the national education system. A certification for a high school math teacher training model was obtained. In 2021, 22 teachers graduated from level I and 10 from level II. Partnering with the Real Madrid Foundation, cooperative activities were initiated with Millicom Tigo. Workshops were developed for Socio-Sports school teachers, and other foundation programs. These workshops served to develop technological abilities, as well as the responsible use of the internet and social media.

The guitar class certificate for basic music level and popular guitar taught by the Carlos F. Novella School of Music, were certified in 2021. Thanks to this certification, students can opt to continue their professional studies at other music schools, such as the National Music Conservatory, Art School, and the Municipal School of Music.

In order to generate learning continuity for children and youth, we worked on designing and adapting Social Studies learning manuals. The result was a differentiating process in the 5th, 6th and 10th grades. A specialist was brought in to integrate activities and programs to other learning areas for children and youth within the public education system. Portable sinks, as well as necessary supplies, were provided to schools and locations where we implement our programs. We also equipped our own educational and training centers.

As of 2020, we are members of the Global Partnership for Education’s local board. Within the board we were appointed as the chapter coordinators for GPE International. The Foundation’s commitment was to match US$3.5 million, to be used for early childhood, preschool, youth, and adult programs, both in or out of the school system. The primary objective of this alliance is to update the National Education Plan, adapting it for pandemic and post pandemic application. In 2021 we participated in the annual Summit, along with learning and experience sharing webinars.

The alliance with INTECAP allows us to certify technical competencies through our courses. The pandemic didn’t stop this alliance but rather helped strengthen the model by implementing virtual processes and having small groups for practical application of technical processes.

GLOBAL PARTNERSHIP FOR EDUCATION

The purpose is to strengthen the cluster and enable it to position the issue within and outside the network. In 2021, Latin American early childhood investors answered a survey, and participated in a call for case proposals and good practices. A total of 104 applications were received from 15 countries, and 76 applications were selected.

Supported by the people of the United States and alongside La Factoría Ciudadana -El Salvador opens and institutionalizes a Tertiary Violence Prevention Program. La Factoría Ciudadana Guatemala’s mission is to truly and responsibly accompany the reinsertion process of those who’ve had problems with the law. They do this by achieving an individual transformation. This redirects their lives and reduces reoffending by strengthening their individual, social, and technical capacities which support full reintegration. We find ourselves in the program’s second phase as we approach 2023.

TERTIARY VIOLENCE PREVENTION PROGRAM LA FACTORIA CIUDADANA

An agreement called Juntos Hacemos más por la infancia (together we do more for Early Childhood) was signed with RedEAmerica, the InterAmerican Dialogue, and members of the Early Childhood Cluster (Arcor Foundation, FEMSA Foundation, Smurfit Kappa Foundation, Carlos F. Novella Foundation,CEMEX).

DONATIONS

SacsEntities

Beneficiaries

Solidarity has always been present in the company since its beginnings, as well as in Carlos F. Novella’s personal life. When earthquakes hit in 1917 and 1918, he donated cement for reconstruction. Over time and following his example, his descendants continue to request cement bags through the Carlos F. Novella foundation, to support communities in need.

2022 CHALLENGES AND OBSTACLES

Successful return to on-site learning, without losing benefits and opportunities that virtual education provides.

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Maintain our continuous improvement focus to benefit our targetpopulation.Seek new partnerships and consolidate those initiated in 2021, in order to expand program coverage in a targeted manner Continue a point of reference representing trust and credibility to beneficiaries and allies.

Reducing participant dropout rate who, due to personal, economic, or work-related reasons, abandon their training processes.

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