We will now begin the briefing session for fiscal year ending December 2021. First of all, I would like to introduce today's attendees. In front row, to the right is Nippon Express Holdings President and Representative Director, Mr. Saito. To his left is Executive Vice President, COO, Representative Director in charge of corporate management and risk management, Mr. Horikiri. In the back row, on the right is COO in charge of global business, Mr. Kondo. To his left is Executive Vice President, COO, and Representative Director in charge of logistics and network business, Mr. Nakamura. Next, from Nippon Express Holdings, Director and Managing Director, Mr. Masuda. From the secretariat is Mr. Suzuki, Director of Finance Planning. The moderator is Tsumori from IR Promotion Office, Corporate Planning. Today's schedule is as follows: President Saito will start the meeting with a 20-minute overview of the financial results.
Next, Mr. Kondo will give a 15-minute presentation on the forwarding business and the status of priority industries. Then Mr. Nakamura will give a 10-minute presentation on the business and indirect cost reduction initiatives. Total is 45 minutes. There will be 25 minute Q&A afterwards. The session is scheduled to end at 5:45 P.M. Japan time. There are three pieces of handout, PowerPoint presentation, Tanshin report, and notes on the financial results. Those are available on the website. As announced, the Q&A session will be held in accordance with the conference call format. Please understand that after the presentation, we will be moving to a conference call. I would like to make four housekeeping announcements. First, we have changed our fiscal year end since last year. In FY 2021, the first year of the change, there are only nine months, from April to December.
However, in order to facilitate comparison, we have prepared pro forma financial statement for January to December. Our explanation today will be based on this pro forma information. Please refer to materials prepared for Tanshin basis posted on the company's website as a supplementary material if necessary. Second, as Nippon Express Holdings became a listed company after Nippon Express was delisted, as part of the transition to the holding company system, the holding company will disclose its financial results to the Tokyo Stock Exchange as other decisions related to Nippon Express and other entities. Earnings and dividend forecast for FY ending December 2022 will be announced separately. Third, from this time onwards, the main themes of the briefing will be the management overview and the progress of the management plan with focus on business results.
We would like to take enough time to discuss sustainability, governance, and risk management at a separate event such as an IR Day. Lastly, we would like to announce that we have reclassified our geographical regions under the group management into the following five regions: Japan, Americas, Europe, East Asia, and South Asia & Oceania. Mr. Saito will now explain the financial results for fiscal year ending December 2021. Now over to you, Mr. Saito.
Thank you. This is Saito. Thank you very much for taking time out of your busy schedules to participate in our financial results briefing today. I would like to express my sincere gratitude to your continued patronage. Today, I would like to begin by presenting an overview of our financial results for the fiscal year ended December 31st, 2021, our full year earnings forecast, and progress on our management plan and shareholder returns.
First, I will provide an overview of the financial results. Please refer to page four of the handout. Consolidated financial results for FY 2021 were as shown in the materials. Although some industries have been recovering from the pandemic for the last 10 months, the domestic logistics business remained sluggish due to poor harvest of agricultural products and the impact of reduced automotive production. On the other hand, overseas and international logistics remained strong, especially in the South Asia & Oceania region, where there was a significant increase in the volume of cargo handled after the lifting of lockdown, mainly in the automotive industry. As a result, I would like to first report that we have achieved the interim targets of the management plan. With increased sales and profits.
Secondly, compared to the forecast figures announced on November 12th, net sales and each profit below operating income exceeded the forecast. This is mainly due to the fact that although we had conservatively forecasted the handling of air and ocean freight forwarding due to the uncertain outlook, as I mentioned earlier, we were able to significantly exceed this forecast due to growth in South Asia & Oceania. With regard to overseas regions other than South Asia & Oceania, in the Americas, in addition to an increase in the volume of cargo handled, mainly by the automotive industry, cost reduction measures implemented since last year contributed to the increased profits. In Europe, both sales and profits increased due to steady demand from the automobile and electronic parts industries, which continued from the second quarter, as well as the handling of apparel-related air charters from Italy.
On the other hand, in East Asia, although there was an increase in air and ocean transport exports, mainly to the automobile, electrical, and electronic industries, there was a reactionary decline from the strong performance of air charters of games consoles and other products to Europe and the U.S. during the Christmas shopping season of the previous year. In addition, a provision for bad debt was posted in the second quarter, resulting in the increase in revenue, but a decrease in profit. As for Japan region, the air and ocean freight forwarding businesses and e-commerce related businesses performed well. But as I explained earlier, domestic logistics remained weak as in the second quarter. In addition, due to the cost of relocating to the NX Group building and other factors, sales increased, but profits decreased for the October to December period.
On the other hand, both sales and profits increased for the full year thanks to higher profits in the first quarter, mainly due to a reactionary increase from the impact of pandemic last year. As mentioned earlier, our overseas business and international logistics business utilizing our global network continue to drive our performance. We believe that management strategy to date has been successful. As mentioned earlier about the increase in the volume of cargo handled in South & Southeast Asia, Oceania region, in order to continue their production activities in the midst of supply chain disruptions, customer needed to procure parts from non-traditional countries and secure transportation lines. As a result of our efforts to grasp the needs correctly and implement solutions from the customer's perspective, we believe that we were able to respond to their needs.
On the other hand, in domestic logistics, we will continue to control costs, especially outsourcing costs. At the same time, it is essential to respond to changes in the supply chain and capture opportunities in growth areas. That was my brief overview of the financial results. Pages 13 and 14 of this document provide a breakdown of changes in net sales and operating income, taking into account variable factors. The details of each segment are shown on pages 16 to 23. Please refer to them later as well. Next, I will explain the consolidated forecast for the fiscal year ending December 2022. Please refer to page 25. As a result of calculations based on a comprehensive consideration of current conditions and forecast, we expect an increase in revenue and profit under operating income and below year over year.
One of the key points in our forecast is how we make assumptions about the international cargo trends. We expect air and marine exports to remain strong as we expect global shortages goods and space for air and marine transport to continue into FY 2022. In addition, due to the global spread of Omicron variant, Japan has also been hit by the sixth wave of pandemic. Although the future of the economy is still uncertain, the shortage of semiconductor is expected to be resolved, and domestic logistics is expected to gradually recover due to the recovery of the automotive and industry-related industries and other factors. Based on this outlook, we have formulated our business forecast.
In the second half of fiscal year, the strong performance of air and marine transport will come to an end, however. Therefore, our revenue and profits are forecasted to decrease also because of the expected decline in air forwarding handling in South & Southeast Asia, Oceania. The main reason for the larger increase in net income is due to the gain on sale of the former Shiodome Head Office Building. Next, I would like to explain the status of our management plan initiatives. I will give you a highlight of future initiatives, and the details will be given by each vice president in charge. Please see page 35. First, with regard to the growth strategy for core businesses, the global sales structure is now in place. As a means of expanding sales, we will promote account management.
We are committed to providing products and services that meet the needs of our customers by identifying what they consider valuable. We will promote the customer industry axis approach by developing sales from the market in concept of providing services. At the same time, this approach will be linked directly to the business and area-based axis approach, and we will continue to promote the customer industry business and area-based axis approach. We will drive the growth of our core businesses with these three- axis approach. Please turn to page 37. Next, with regard to the strategy for strengthening the Japan business. Although we are seeing results from reducing overhead costs and outsourcing costs, we believe that there are many areas that need to be improved.
As productivity of warehouse operations is important, we need to expand market share and maintain and grow the top line. We believe that we need to focus on this theme. The basis of this initiative is the promotion of the growth strategy for core business. We will expand our industrial targets to fields where future expansion is expected, such as the pharmaceutical and semiconductor industries, but we believe that it is necessary to design businesses that correspond to new business models. We will explain the direction of this initiative later. Please turn to page 41. With regard to ESG management for sustainable growth and corporate value enhancement, with the transition to a holding company structure, we are developing a system to promote sustainability, including climate change, more vigorously throughout the group.
With sustainability as a keyword, companies are expected to undergo qualitative changes, and we need to prepare for transformations. We will sort out the medium and long-term goals of the entire group and the targets for carbon neutrality in 2050, as well as the issues to be addressed, and reflect them in the next management plan. I have explained the progress of the management plan. As previously announced, we have completed 2021, the interim year of our management plan, and have reviewed our management plan in light of our business performance, the progress of each measure, and the outlook of the global economy. The following is a report on the result of this review. Please turn to page 43.
In conclusion, as a general assessment of our progress, we recognize that we have achieved steady results over the past three years in growth strategy for core business, strategy for strengthening the Japan business, and efforts to realize a long-term vision, which are the main components of our management plan. In addition, the assumption that the Japanese logistics market will continue to shrink has not changed, and we will continue to improve profitability in Japan while strongly promoting a three-axis approach based on the customer industry, business, and area axis, as well as utilizing M&A. We will continue to pursue our long-term vision of becoming a logistics company with a strong presence in the global marketplace. Please turn to page 45. I will explain the numerical management targets. The revised target figures for each item are as shown in the materials.
This assumption is based on the fact that the shipping and air freight forwarding business in 2022 will continue to experience the current supply and demand situation. Although the tightness in supply and demand will gradually ease, the impact will continue on in 2023. As for domestic logistics business, it will gradually recover from the impact of the pandemic. In general, the domestic logistics business is expected to absorb the reactionary decline in the forwarding business. Based on this assumption, the sales forecast for 2023 has been set at JPY 2 trillion, 400 billion, at approximately the same level as the 2022 forecast of JPY 2 trillion, 360 billion, while overseas sales are revised upward to JPY 720 billion. Next, for operating income, the forecast for 2022 has been set at JPY 100 billion.
In addition to the expansion of business in the semiconductor industry, investments in projects such as the construction of the Group's accounting infrastructure, which are currently at a high level, are almost complete and will enter the stage of becoming effective. As a result, costs are expected to decrease. We have revised upward our forecast by JPY 10 billion to JPY 110 billion. As a result, the operating income ratio is increased from 4.2% to 4.6%. Net income will be revised to JPY 72 billion. In addition, our dividend policy will continue as payout ratio of 30%+ and total return ratio of 50% or more respectively. ROE is calculated based on net income and dividend plan and will remain unchanged from the previous fiscal year. In addition to reviewing the numerical management targets, we are also reviewing the forwarding volume targets.
The results are summarized on pages 47 and 48. The vice president in charge of this project will explain the details along with the progress later on. I will now explain the points that I will focus on as president with regard to the efforts to realize a long-term vision. Please turn to page 46. One of the reasons why we decided to shift to a holding company structure is because after completing the interim period of the management plan, we have come to the conclusion that it will be difficult to realize our long-term vision through organic efforts alone, and that it is essential to promote M&A overseas logistics company.
As for the transition to a holding company structure, Day One emphasized soft landing, while the theme of the second phase of the reorganization, Day Two, is to accelerate the transformation under the holdings structure based on the premise of M&A to create a structure that can achieve global growth and a strong group management. We will continue to promote the reorganization toward a structure that will enable us to achieve global growth and stronger group management. The material lists future themes, but we believe that the faster the speed of change, the better, and we will implement them sequentially starting with those that are ready. As we have already begun, we consider the reorganization of group businesses to be the most important theme of the review of business portfolio. Specifically, we are considering reorganizing our real estate and logistics finance businesses.
An even more important theme for the future is the reorganization of our Japan business. In terms of direction, starting from expanding our business globally, we need to concentrate our management resources in the Tokyo, Nagoya, Osaka areas while rebuilding a system that matches the characteristics of the areas, and at the same time, consider the design to strengthen and make function our domestic network products such as automobiles and coastal shipping. In order to proceed with this plan, we will need to focus on the business and structure of Nippon Express as an operating company, but we will be conscious of the need to speed up the process, and hope to have a clear idea of how to reform within the period of the current management plan.
In addition to strengthened governance, we are preparing to integrate the global business promotion functions which are currently dispersed in different organizational layers into the global headquarters' function by July, and to promote and control the global business in five regions of Japan, the Americas, Europe, East Asia, and South Asia & Oceania. By doing so, we aim to accelerate the growth of our global business and strengthen our global governance. Thus, the holding company structure was launched with M&A as a precondition. We believe that we have established the general framework for the structure that we have been preparing for the past three years. With regard to M&A, we are currently in the process of exploring specific projects from various perspectives. We believe that this is the most important thing for the realization of the current management plan and long-term vision.
The company announced today that it will spin off its security and transportation business in January 2023, next year. The company has decided to further enhance our expertise, strengthen our competitiveness, and create services that are required by the times, and promote structural reform in order to develop sustainability as an independent business. Next, please turn to page 53. With regard to shareholder returns for the fiscal year ending December 31st, 2021, we have decided to pay an annual dividend of JPY 240 per share. This is an increase of JPY 55 per share compared to the previous fiscal year due to the increase in net income. The dividend payout ratio and total return ratio including share buybacks are 40.3% and 58.8%, respectively. The total return ratio will be 65.4%.
For the fiscal year ending December 31st, 2022, the annual dividend forecast is set to JPY 400, including a commemorative dividend of JPY 150 for the establishment of the holding company. We will strive to enhance shareholder returns with a goal of achieving a dividend payout ratio of 30% or more, and a total return ratio of 50% or more for the current management plan period and five years cumulative. I have now provided an overview of our financial results for the year ending December 31st, 2021. We will continue to make group wide efforts to realize our long-term vision, and we look forward to your continued support. Thank you very much.
Next is Mr. Kondo, Executive Vice President.
Thank you. I am Kondo. I will now explain the status of our future initiatives of the marine and air forwarding businesses, and the priority industries as part of the core business growth strategy. Please see page 35. Both Marine and air forwarding volumes increased from the previous year. However, while air forwarding achieved its forecast for FY 2021, shipping volume fell short because of the container shortages. As for shipping, where consumption in Europe and the U.S. expand, the gap between supply and demand is widening due to port congestion and flight delays, and freight rates continue to soar. In addition, shipping volumes have been sluggish due to inability for the vessels to operate on schedule. There is no sign that the shortages of marine containers will be resolved in the near future, and they will continue in 2022.
Under these circumstances, we will develop a system to centrally manage real information such as the number of vessels waiting offshore and the status of overdue cargo at ports, and transcontinental railroads in the U.S., Europe, and other countries. In addition, the functions of our global non-vessel operating common carrier, GNC Center, will be relocated to Singapore in April this year, where it is scheduled to start full-fledged operations. We will focus on securing space around the GNC. In addition, we will promote a comprehensive approach utilizing a global network that does not cause disruption in the supply chain, and utilize the Siberian Land Bridge and the China Land Bridge in parallel, which combine ocean and rail transportation together. As for air transportation, cargo movements from Asia and North America centering on electrical appliances, electronics, and consumer goods have been strong.
While transportation demand is high, supply of space is not keeping up. Due to the tightening of waterfront measures because of Omicron variant prolonged blockage management in China, IATA reports that the International Air Cargo volume in December 2021 will increase by 9.4% versus 2019, while space supply will decrease by 6.5%, and the gap between supply and demand will continue, and it will take time to close. Under these circumstances, international air cargo volume in 2022 is expected to go up 5.4% versus 2021, and air forwarding is expected to remain strong in the second half of 2022 and beyond. From the perspective of stable supply, we have started regular charter flights between Japan and North America twice a week since January this year, providing space to customers in Japan and other Asian countries.
We will continue to focus on securing space to keep the supply chain uninterrupted, but at the same time, we believe that it is important to control space in accordance with the changes in supply and demand. We need to secure about 70% of the space in relation to the forecasting industry, and 30% should be flexible to meet market changes. We will strive to secure a stable space through the best mix of medium- to- long term contracts and short- term contracts with carriers. In addition, customers are working to optimize cost and speed based on the expectation of tight supply and demand. For urgent cargo, while space supply capability and speed are required, in the case of products with ample lead time or in the case of changes from shipping, we are able to offer a wide range of services centering on the cost.
There is a growing demand for cost- conscious logistics service as well. In order to meet these expectations, we are working to develop services from the customer's perspective by creating sea and air combined offerings. As explained regarding the status of the forwarding business, we were unable to achieve the interim volume target of the management plan. In light of this situation, we reviewed the plan and have decided to lower the final year target for forwarding volume. Please see page 47. In shipping, the tight supply demand situation is prolonged, and it is difficult for shipping companies to effectively supply space. Therefore, we expect that it will be difficult for us to secure space based on our volume strategy, and we have lowered our target for the final year to 1.1 million TEU.
As for air transportation, according to IATA report, the air cargo demand in 2022 will be 13.3% higher than the 2019 level, but space supply will be lower and supply and demand will contribute to be tight. As airlines are expected to continue to be affected by the space tightness due to the fact that their aircraft movements and operational systems will be affected by the measures against the pandemic, we have decided to lower the target for the final year to 1.2 million tons.
Although we will lower the targets and postpone the timing of achievements for both forwarding services mainly due to the space supply situation, there is no change to our basic volume strategy formulated in the management plan, and we will continue to strengthen and expand our forwarding businesses while responding to changes in the supply chain. Next, I would like to explain our efforts in priority industries. Again, please see page 35. While the expectation of the domestic apparel industry, we achieved our forecast except for that. We achieved our forecast for FY 2021 exceeding the previous year's level as a result of our ability to accurately meet the logistic needs of the customers. For the domestic apparel industry, the timing of the changeover to customer facilities came, and that negatively affected our performance.
We also reviewed the management plan by examining the progress made up to 2021 and the outlook for the future. Please see page 47 again. As a result of the review, as you can see here, we have decided to revise some of the target values as described in the document. In this context, the targets for the domestic pharmaceutical industry have been revised downward. Drug manufacturers are under pressure to reform drug distribution, including cost reduction due to NHI price reductions and other factors. However, the current priority is to deal with the pandemic, and there are postponements in the full-scale response to the drug distribution and bidding. In addition, although transportation of vaccines and related pharmaceuticals is increasing, distribution of other pharmaceutical is decreasing, and our plan is also affected by this situation. For this reason, we have decided to postpone the achievement of the plan.
However, there is no change in the need to distribute for the distribution reform and response to future GDP. We will continue to expand our logistics business related to pharmaceuticals while actively responding to the bidding requests from foreign manufacturers who are advanced in GDP and who are asking for our forwarding services. Next, as industries that are expected to grow in the future, and therefore our refocus today, I will explain our efforts in the automotive and semiconductor industries. As for the automotive industry, there are differences among OEMs. However, due to the shortage of semiconductors and disruptions in marine transportation, they are still forced to reduce production both in Japan and overseas. The shortage of semiconductors is beginning to disappear, and although cargo movements will improve globally from 2022 onward as automotive production recovers, we do not expect a full recovery until 2023 or later.
Under these circumstances, our basic strategy is contribute to the increasingly complex supply chains of customers by utilizing multifunctional warehouses near the plants, which are called front-door warehouses. However, each manufacturer has started to reform their supply chain management and is now considering the diversification of supplies and local production for local consumption. The point of appeal for this reform is the management of each component in the supply chain, and we have received many inquiries about this. We have already made concrete proposals such as offshore inventory and visualization of parts at the warehouse in front of customers. We believe that responding to the expectations of our customers from their perspective will enhance our capability and deepen our relationship as a business partner. In addition, with the accelerated decarbonization of the automotive industry, automakers are working hard to develop technologies to become the de facto standards.
In addition to the overall trends in the automotive industry, it is important to understand the global strategy of each manufacturer. We believe that our strategy will center on procurement logistics for the shift in EV production that the OEMs are making in Japan, China, and Europe, and dealing with the global supply chain formed by suppliers, including EV-related manufacturers of batteries and motors. As one example, we are currently focusing on East Europe. In East Europe, where many Japanese manufacturers and suppliers are already there and form a cluster, we have bases in Hungary, Czech Republic, and Slovakia, and opened a branch in Serbia in October last year. We have already started providing services there for Japanese suppliers for the transportation of parts and materials from Japan and other Asian countries.
We are now making plans and preparations to start procurement, onsite warehousing, and product delivery services in the region by 2023. As for the semiconductor industry, the world map of semiconductor is starting to change drastically, especially in the U.S. and China. We believe that our strategy will focus on the global expansion of U.S. semiconductor manufacturers and Taiwanese foundries, as well as the trend towards in-house semiconductor manufacturing in China. In particular, in the U.S. state of Arizona, where U.S.-based semiconductor manufacturers are expanding their manufacturing basis and Taiwanese foundries are expected to establish factories. We have assembled a team of experts in the semiconductor industry and expanded our sales structure in November last year.
We are planning to start operation of dedicated warehouse for semiconductors this year. We believe that the success or failure of this operation will be a touchstone for the expansion of logistics related to semiconductor industry on a global level. We have already received informal orders from several Japanese and non-Japanese suppliers for forwarding services. We have also started to design logistics services for factories in order to contribute to solving customers' problems on an end-to-end basis. In Japan as well, semiconductor manufacturers are planning to strengthen their production, and new plants are being built in Yokkaichi, Kumamoto, Kitakami, and other areas. Under these circumstances, we are currently handling mainly semiconductor manufacturing equipment, but we would like to thoroughly challenge and start the production logistics of semiconductors, and pursue the logistics-related semiconductor production in Japan. One is to provide procurement logistic solution from suppliers to manufacturers.
The other is to improve the efficiency of logistics by improving the factory logistics and using the warehouse in front of customers. in September this year, we will start operation of a 15,000 tsubo warehouse in Yokkaichi, one of our major semiconductor manufacturing bases, as part of our logistics planning, including investment. Centered on these bases, we will aim to expand the handling of implant logistics by utilizing the knowhow of our group companies. Furthermore, in areas other than Yokkaichi, we will aim to expand our semiconductor production logistics services by making proposals from the customer's perspective, including investments to strengthen the semiconductor production system in Japan. Therefore, we believe that we can respond to changes to the industrial structure and expand into leading edge industries. That was my explanation of the two key areas. We will continue to strengthen and expand our initiatives we have been taking.
In addition, as the global supply chain continues to change, customers' needs for logistics are already changing, and supply chains are required to realize stable supply, high quality, reasonable cost, and reduction of CO2. I believe logistics can provide a solution to these different challenges. It is about guiding and designing optimal solutions by making full use of various transportation modes, networks, and IT systems. In order to achieve our goal of becoming a logistics company with a strong presence in the global market towards the goal of the NX Group I just stated, we would like to strengthen our logistics business based on a market-in approach. That's all from myself. Thank you very much.
Next, Vice President Nakamura.
Thank you. I am Nakamura. I would now like to explain the strategy for strengthening the Japan business and the status of indirect costs. Please refer to page 36. Here are our non-consolidated net sales by business segment for the fiscal year ending December 31st, 2021. Although the shipping and aviation businesses have grown significantly due to strong international logistics, the recovery in domestic logistics has been limited and, in general, has not reached the pre-COVID levels. The pandemic, shortage of semiconductors, and poor harvests of agricultural products in Hokkaido are the main factors, but cargo movements have been recovering to a certain degree since October. While we expect the handling volume to increase in the future, there are still many uncertain factors such as the expansion of the Omicron variant, and believe that it will be difficult to give concrete predictions. Please turn to page 37.
Under these circumstances, we have been promoting a variety of initiatives as part of our strategy to strengthen our business in Japan. The following is a list of the major ones. First, I would like to talk about the improvement of profitability. With regard to the reduction of subcontracting costs, which we have been working on since last year, the subcontracting cost ratio decreased by 2.9 points compared to the previous year while total sales increased by 14.9%. The utilization rate of company-owned vehicles increased by 2.1 points compared to the previous year as a result of strengthening efforts such as vehicle matching for the best use of our daily workforce. We will continue to strongly promote cost control, especially during the recovery phase of cargo movement in the future.
In the areas of improvement of productivity, evolution of land, sea, and air integration, and enhancement of network products, we have achieved results as described in the handout. As for the improvement of productivity, we have been promoting the overall improvement of warehouse operations by upgrading operations at 435 locations. As a result, all locations have achieved the level of companywide target, and quality and work efficiency have started to improve. We will continue to improve our operations. In the area of strengthening network product sales of Protect BOX, in particular, almost doubled year on year, and the product has been well received by customers. In addition, in response to changes in the CO2 related response of our client companies, we have further evolved our service to search for the optimal domestic transportation mode and released Eco-Trans Navi in November last year.
Based on the customer's past shipping data, it is possible to collectively calculate and visualize the difference in CO2 emissions between the current transportation mode and more environmentally friendly modes such as rail and ocean transportation if the customer uses our company. This is a service that takes advantage of our strength as a comprehensive logistics provider and is in tune with the times. Please turn to page 38. I would now like to explain about overhead costs. We have presented the status of the cost increase related to the employee system reform and actual impact for FY 2021, with an increase of JPY 1.3 billion, which is almost the same level as expected. We have also estimated the costs expected in the future, and the cumulative total for the period from FY 2019 to 2023 is estimated to increase by JPY 8.5 billion.
Page 39 is on efforts to reduce indirect department costs. With regard to the bundling of the organization and the streamlining of the management organization, we will continue to promote the new system in 2021, which was implemented in 2020 by reallocating the personnel of the indirect departments of branches and the head office with the aim of achieving company-wide effects. As for the office process reforms, mainly due to the recovery in handling volume, superannuation for the cumulative period for April to December increased by JPY 550 million. Temporary staffing costs decreased by only JPY 200 million in the current fiscal year, as the effect of the review implemented last year came full circle. On the other hand, the promotion of reducing the workload of frontline office workers by centralizing office work through RPA and shared service centers has curbed the increase in overtime costs.
The cumulative effect of reducing overtime work from 2019 onwards is approximately JPY 1.9 billion. As a result of the above, at the end of FY 2021, the cumulative amount of reduction in indirect department costs from FY 2019 was JPY 6.33 billion, which is 66.6% of the target of JPY 9.5 billion. We have reviewed the management plan, but based on the current progress, we have not changed the target of JPY 9.5 billion. We will continue to aim to achieve the target from the perspective of improving productivity by further promoting centralization of office work and paperless operations integrated basis. In addition, page 40 shows the details of our PA initiative as part of the office process reform. In addition, please refer to page 48 that summarizes the status of the review of the strategy for strengthening Japan's business.
Now that I have explained our strategy to strengthen our Japan business and the status of indirect costs, we will continue to strengthen and expand our existing initiatives. In addition, we believe that the key theme is how to raise the top line in a shrinking market. Our basic strategy is growth strategy for core businesses, including the Japan market. I would like to mention two key strategies for the future. First, we will strengthen our ability to understand the value that our customers consider in a supply chain and provide logistic solutions to realize that value. From this perspective, the first point of our priority strategy is to strengthen our marketing approach and promote structural reforms in each of our core transportation businesses in order to meet the various needs of our customers. The second is to strengthen our Specialized Transportation business.
The three business divisions of Transportation, Fine Art Transportation, and Heavy Lift & Construction were reorganized as a Specialized Transportation Business division. This reorganization was made to take advantage of the introduction of a holding system to enhance the specialization of each business and to develop them as independent businesses on a sustainable basis. In order to ensure that each business support the growth of the NX Group and to continue to develop in the future, we will strengthen and implement our sales, organization, human resources, and investment strategies based on a clear business vision. The goal of these two strategies is to win in the Japanese market, which is our mother market. We have already started the NX Business Structural Reform Project, which aims to make our company overwhelmingly strong in Japan, our home country.
Although the severe domestic economic situation with COVID continues and the future is uncertain, we will continue to work to further strengthen our business in Japan. That is all from me. Thank you very much.
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