STATE FARM 401(k) SAVINGS PLAN 2030 PORTFOLIO Fact Sheet

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1 STATE FARM 401(k) SAVINGS PLAN 2030 PORTFOLIO Fact Sheet for the period ending March 31, 2018 Asset Class: Lifestyle/Pre-mix (Target Date) Closing price: $36.25 Investment Objective The 2030 (the ) seeks to provide capital appreciation and current income that are consistent with its current asset allocation. The construction is described in the Holdings section and the Composition section of this Fact Sheet. Investment Strategy Asset allocation strategy is designed for participants who are planning to retire between 2028 and Asset allocation will automatically become more conservative over time. Approximately seven years after the target date, the s asset allocation is expected to resemble that of the Income. The s underlying funds are listed in the HOLDINGS section. The s indirect stock holdings are a diversified mix of U.S. and foreign large-, mid-, and small-capitalization stocks. The s indirect bond holdings are a diversified mix of short-, intermediate-, and long-term U.S. government, U.S. agency, and investment-grade U.S. corporate bonds; mortgage-backed and asset-backed securities; and government, agency, corporate and securitized investment-grade foreign bonds issued in currencies other than the U.S. dollar (but hedged by Vanguard to minimize foreign currency exposure). Who may want to invest? Participants seeking both a reasonable level of income and long-term growth of capital and income. Participants seeking a simple way to achieve a broadly diversified holding of stocks and bonds that will gradually become more conservative in its allocation. Participants seeking to retire in years closer to 2030 (e.g., between 2028 and 2032). Who may not want to invest? Participants unwilling to accept significant fluctuations in share price. Participants seeking maximum long-term growth of capital. Participants expecting a guaranteed sum or level of income upon retirement. For Additional Information about investment options in the plan, call the State Farm Benefits Center toll free at or view the Summary Plan Description (SPD). Overall risk level* (please also see RISK STATEMENT below) Conservative Moderate Aggressive *determined by The Vanguard Group, Inc. Investment management provided by The Vanguard Group, Inc. Holdings 1 STOCKS % of Vanguard Total Stock Market Index Fund Institutional Plus (VSMPX) 42.1% Va nguard Total International Stock Index Fund Institutional Plus (VTPSX) 28.2% FIXED INCOME Vanguard Total Bond Market II Index Fund Institutional (VTBNX) 20.8% Vanguard Total International Bond Index Fund Institutional (VTIFX) Vanguard Short-Term Inflation-Protected Securities Fund Institutional (VTSPX) 8.9% 0.0% TOTAL HOLDINGS 100.0% Period ending 3/31/2018 Rate of return 1 year 11.28% 5 year 8.70% 10 year n/a Since inception (9/1/2008) 7.36% Composition Asset class % of Stocks 70.3% Fixed income 29.7% Total 100.0% Stocks Fixed income 70.3% 29.7% Average Annual Total Returns 2 turnover rate as of 3/31/2017 = 4.10% Calendar Year Returns % 14.57% -1.26% IMPORTANT NOTE: All information is provided for informational purposes only and should not be viewed as recommendations to buy or sell the investment described. Consider seeking the advice of tax or investment counsel before making tax or investment decisions. PLEASE SEE RISK STATEMENT ON PAGE % 14.40% 20.59% 7.27% -0.89% 7.94% 17.63%

2 1 For information about complete holdings of this investment option, please contact the State Farm Benefits Center toll free at The performance data shown represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so units, when sold, may be worth more or less than their original cost. Future performance may be lower or higher than the performance data cited. All figures represent average annual returns. Performance figures include reinvestment of all income and capital gains and are net of the investment manager fee. On July 3, 2017, the State Farm 401(k) Savings Plan converted the Target Data s from the Plus series to the Select series, resulting in a reduction in investment management fees paid by participants (see section labeled Additional Fees and Expenses information on page 2 of this Fact Sheet). The Plus series had previously been converted from the Trust 1 series on April 29, 2013, which also resulted in a reduction in investment management fees. The Average Annual Total Returns shown above represent the blended performance of the Select, Plus and Trust 1 series considering the time periods that the respective series were available to participants. For additional performance information on the Target Date s, see the list of s in the section labeled Target Retirement Trust Select of THIS PAGE on the Vanguard website. RISK STATEMENT It is the intent of the State Farm 401(k) Savings Plan to follow ERISA section 404(c) and Title 29 of the Code of Federal Regulations section (c)-1. Under these rules, each participant bears responsibility for any gains or losses which are the direct and necessary result of investment instruction(s) given by him or her. An investment in this is not guaranteed and you may experience losses, including losses near, at, or after retirement. The is subject to several stock and bond market risks, any of which could cause a participant to lose money. This invests in common stocks, based on its glide path shown below. Common stock investments represent an equity interest (ownership) in a business and are subject to several risks. Stock prices may fluctuate widely over short or extended periods in response to company, market, or economic news. While there is an opportunity for higher return, there is also greater risk of loss. The s allocation to fixed income investments is not risk-free. The Federal Reserve target Fed Funds rate (a short-term interest rate) is a range of 1.00% 1.25%. Significant declines in interest rates have been the primary driver behind the positive returns for high-quality fixed income in the marketplace as well as within the fixed income portion of the over the last several years. If interest rates rise, values of fixed income investments (one component of the ) will decline, possibly more than the interest income the fixed income investments earn. Credit risk is the risk that an issuer of a bond may become unable to meet its obligation to pay interest on the bond, or repay principal. The credit risk within the is mitigated by investing in investment grade bonds. Inflation risk is the risk that the value of assets or income from an investment will be worth less in the future as inflation decreases the value of money. s with higher allocations to common stocks may move up or down more frequently and with wider variance than other investment options in the 401(k) Savings Plan which have a lower allocation to common stocks. Over time, as the s allocation between underlying funds gradually changes, the s overall level of variability should decline. In addition to the risks inherent in the asset classes of the underlying funds, the also is subject to asset allocation risk, which is the chance that the selection of underlying funds and the allocation of assets will cause the to underperform other s with a similar investment objective. Risks specific to international investing are covered in the International Investing section on page 3 (below). ADDITIONAL FEES AND EXPENSES INFORMATION Asset operation expenses can include expenses of investment management and asset custody. For investment management, the expense ratio is an investment account operating expense expressed as a percentage of average net assets. The expense ratio includes management and operations fees. It directly reduces the rate of return to participants. Reasonable asset operation expenses can be charged to participants. Each participant who places some or all of their account balance in the will pay an expense ratio equal to 0.05% (annually) (as of July 3, 2017) of the participant s account balance invested in the. For example, for every $10,000 invested in the, the annual cost is $5.00. The expense ratio history is: 0.06% (annually) from June 26, 2015 to July 2, % (annually) from August 15, 2011 to April 28, % (annually) from April 29, 2013 to June 25, % (annually) from September 2, 2008 August 14, 2011 Currently, State Farm pays all other asset operation expenses, if any. Plan operation expenses relate to the daily operation of the Plan, such as recordkeeping, web access, participant services and disbursements. Reasonable plan operation expenses can be charged to participants although, currently, State Farm pays all of these costs. Please note that loan origination costs are paid by participants who request loans from their 401(k) account. Overall plan management expenses relate to managing and overseeing the plan and its service providers as a whole, such as accounting, audit, legal, regulatory compliance, and fiduciary support. Reasonable overall plan management expenses can be charged to participants although, currently, State Farm pays all of these costs.

3 INVESTOR EDUCATION Target date investing Each Target Date is a pre-set mix of widely diversified index mutual funds managed by Vanguard. Vanguard investment managers are responsible for the investment selection, asset allocation and re-balancing of each. The Fact Sheet for each Target Date (see Holdings section on page 1) lists the five Vanguard index funds in which the invests and the percentage of the s assets invested in each index fund. The manager gradually shifts each s asset allocation to fewer stocks and more bonds making the more conservative the closer you get to retirement. The changing mix of stocks and bonds over time is called the glide path. There are twelve Target Date s offered in 5-year increments. You would typically choose the Target Date closest to your expected retirement year. For example, if you plan to retire in 2048 or later, you might be a candidate for the The glide path feature allows you to select one (although you are not limited to one) and the adjusts automatically over time. The performance of each Target Date will be based on the performance of the underlying index funds and their respective asset allocation within the. Target Date Asset Allocation The graphic below illustrates the glide path and shows how stock exposure is greatest for the longest Target Date (i.e., the 2065 ) and least for the shortest Target Date (i.e., the Income ). The stock exposure in all s will result in fluctuations in share price. You must be willing to accept these fluctuations as you seek long-term growth of capital and income. The graphic also illustrates the change in asset allocation of one over its life cycle. Each, when introduced, starts with an allocation of 90% stocks and 10% bonds. Over time, the will glide down to an allocation of 50% stocks and 50% bonds by the time it reaches its target date. The then continues to glide downward for seven more years until it reaches its landing point of 30% stocks and 70% bonds. At that time, its investments should mirror the investments of the Income and the Target Date will be merged into the Income. Each has exposure to international markets within the overall allocation to stocks and bonds. The graphic also illustrates the current breakdown of each s assets between U.S. and international stocks and bonds. 100% TOTAL 100% % Notches represent 10% increments % If you are this age you may want to consider choosing this target date investment option < > Income Total Stock Market Index Fund Total Int l Stock Index Fund Total Bond Market II Index Fund Total International Bond Index Fund Short-Term Inflation- Protected Securities Fund Stocks Fixed Income

4 International Investing The Vanguard Total International Stock Index Fund ( VTPSX ) and the Vanguard Total International Bond Index Fund ( VTIFX ) are two of five underlying index funds in which this Target Date may invest. VTPSX invests in stock and VTIFX invests in bonds of companies located in many countries around the world, other than the United States. The section (above) titled Risk Statement describes the common risks of investing in Target Date s. There are additional risks associated with international investing that could affect Target Date s performance. Currency risk is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates. VTPSX is subject to currency risk. Currency hedging risk is the risk that the currency hedging transactions entered into by VTIFX may not perfectly offset VTIFX s foreign currency exposures. VTIFX seeks to mimic the performance of foreign bonds without regard to currency exchange rate fluctuations. To accomplish this goal, VTIFX attempts to offset, or hedge, its foreign currency exposures by entering into currency hedging transactions. However, it generally is not possible to perfectly hedge VTIFX s foreign currency exposures. VTIFX will decline in value if it under-hedges a currency that has weakened, or overhedges a currency that has strengthened relative to the U.S. dollar. In addition, VTIFX will incur expenses to hedge its foreign currency exposures. Currency hedging risk for VTIFX is low. Investments in international stock and international bonds are also subject to country/regional risk. Country/regional risk is the chance that world events such as political upheaval, financial troubles or natural disasters will adversely affect the value of securities issued by companies in foreign countries or regions. When VTPSX or VTIFX invests a portion of its assets in securities of companies located in any one country or region, performance may be hurt disproportionately by the poor performance of its investments in that country or region. Country/regional risk is especially high in emerging markets. The amount of exposure a Target Date has to a specific country is a product of the weight given to VTPSX or VTIFX in the Target Date and the weight given to companies in that country by VTPSX or VTIFX. For example, if VTPSX represents 10% of the entire Target Date and VTPSX has 15% of its holdings in Country X, this means that 1.5% (= 10% x 15%) of the Target Date is exposed to Country X. The weight given to VTPSX and VTIFX in a Target Date is shown on page 1 of each s Fact Sheet in the Holdings section. The weight given to each country by VTPSX and VTIFX depends on the country. Total country/regional risk for a given country can be approximated by adding the calculated exposure in VTPSX to the calculated exposure in VTIFX. To assist with the calculation, as of the date of this Fact Sheet, the five most heavily weighted countries in VTPSX and VTIFX were as follows: VTPSX (International Stocks) VTIFX (International Bonds) Japan 17.6% Japan 20.8% United Kingdom 12.0% France 12.0% China 6.8% Germany 9.9% France 6.4% Italy 8.2% Germany 6.2% United Kingdom 7.8% For additional information about VTPSX, please visit the following page of the Vanguard website: For additional information about VTIFX, please visit the following page of the Vanguard website:

5 STATE FARM 401(k) SAVINGS PLAN Understanding your 401(k) Account Investment Decisions Investing your 401(k) account balance in specific investment options can be daunting and confusing. However, with a little effort, it can be understandable and rewarding. The principles to keep in mind are: Historical performance is not a guarantee of future investment performance. The more you learn and understand about investing, the better you will understand the ultimate outcome. The investment decisions of your neighbor might not be best for you. A well-thought-out decision increases the likelihood of success but doesn t guarantee it. No one can provide guarantees about future investment performance. Key factors you may want to consider in making your investment decisions are: DO-IT-YOURSELF OR USE ONE OF THE PRE-MIXED TARGET DATE OPTIONS If you prefer a do-it-yourself investment option, you may want to look more closely at the Equities Account, Balanced Account and/or Fixed Income Account. If you prefer a single solution investment option, you may want to consider a Target Date. TIME HORIZON (How long before you start taking money out of your account?) If you have 40 years until retirement, you are in a better position to ride out the natural fluctuations in the market, compared to someone who will retire in 5 years. Estimating the number of years until you retire is an important factor. OTHER SOURCES OF RETIREMENT INCOME AND RETIREMENT GOALS (Do you have other expected sources of retirement income such as a pension or Social Security and how are they invested? Also, do you have a goal to delay taking money out of your 401(k) account until months or years after your retirement date?) Retirement income sources like State Farm s retirement ( pension ) plan and Social Security that pay out as an annuity (i.e., a fixed monthly income amount) don t allow you to choose their underlying investments. In your overall retirement income picture, some financial planners would treat these types of retirement income sources like fixed income when considering investment strategies. Because of this, some participants may choose to invest in more aggressive investment options (i.e., more exposure to stocks), as long as their time horizon, risk tolerance and willingness to monitor their investments don t prevent it. In addition, some participants decide to delay taking money out of their 401(k) account until months or years after their retirement date. For these participants, they may want to consider 401(k) investments today that have a longer time horizon than their expected retirement date. RISK TOLERANCE (Are you a risk taker or are you very cautious?) The higher the expected return on an investment, the higher the risk. Participants who take more risk expect to be compensated with a higher return. The risk we are referring to is also called investment volatility. Volatility refers to the possibility that an investment can gain or lose value. Most people view stocks (equities) as a riskier investment and, thus, expect a higher return from stocks than from other investments. EXPECTED OR REQUIRED RATE OF RETURN (What earnings rate do you expect or need from your account in order to meet your goals?) Different investments have different expected rates of return. Historically, the average annual long-term return on investments in cash is fairly modest. The average annual long-term return on investments in fixed income securities is higher than cash. The average annual long-term return on investments in stocks (equities) is higher than cash and higher than fixed income securities. The importance of your required rate of return is to start you thinking about what is possible for each class of investments. If you determine that you need more return than cash or fixed income have historically provided, you might want to look more closely at an investment option that is more heavily weighted to stocks (equities). WILLINGNESS TO MONITOR (Do you have the time and willingness to monitor your 401(k) investment allocations on a regular basis?) Some 401(k) participants prefer to keep a watchful eye on their account and make adjustments when appropriate. Your interest in monitoring your account and the time you have available to do so are important factors in your investment decision. Other 401(k) participants would prefer to make one investment decision and have their account automatically adjust over time. This is why target date investment options were developed and they may be a viable option for this type of participant. FREQUENT TRADING POLICY The State Farm 401(k) Savings Plan (the Plan ) is designed as a longterm retirement savings vehicle. As such, the Plan s investment options are not designed to be appropriate for investors who desire to trade the investments frequently in anticipation of, or in reaction to, short-term market price movements. Frequent trading of investment option shares may lead to less efficient management of the investment option s portfolio, causing the value of the shares to be diluted for the other Plan participants. In addition, it is important to note that the newest Target Date s are more susceptible to trading volume fluctuations due to their smaller size than the other s. Therefore, to protect the interests of plan participants, the State Farm 401(k) Savings Plan Frequent Trading Policy is as follows: 1. Plan participants may not transfer or reallocate money into either the 2055, the 2060 s, (effective 11/1/2013) or the 2065 (effective 8/1/2017). However, new money salary reduction contributions to these three s, including rollovers in the Plan, are permitted, and 2. If a Plan participant transfers or reallocates $5,000 or more from one or more of the Plan s investment options, the Plan participant will not be able to transfer or reallocate any money back (other than new money salary reduction contributions) into that or those investment option(s) for 60 calendar days from the transaction date of the most recent transfer or reallocation made. Paragraph #1 overrides this paragraph with respect to the 2055, the 2060 s (effective 5/1/2009) and the 2065 (effective 8/1/2017).