INTERIM REPORT AND UNAUDITED FINANCIAL STATEMENTSiSHARES II PLC

FOR THE FINANCIAL PERIODFROM 1 NOVEMBER 2016

TO 30 APRIL 2017

iSHARES II PLC

i S H A R E S I I P L C I N T E R I M R E P O R T [ 1 ]

Contents

General information 3

Background 5

Half yearly management report

Investment Managers report 11

Financial instruments and risks 30

Significant related party transactions 48

Financial Statements

Unaudited financial statements of the Company

Condensed income statement 51

Condensed statement of changes in net assets attributable to redeemable participating shareholders 51

Condensed balance sheet 52

Notes to the unaudited financial statements of the Company 53

Unaudited condensed Fund primary statements, schedules of investments, schedules of material purchases and sales, and notes:

iShares $ High Yield Corp Bond UCITS ETF 57

iShares $ TIPS 0-5 UCITS ETF 76

iShares $ TIPS UCITS ETF 80

iShares $ Treasury Bond 7-10yr UCITS ETF 86

iShares Corp Bond Sustainability Screened 0-3yr UCITS ETF 90

iShares Govt Bond 3-5yr UCITS ETF 102

iShares Govt Bond 7-10yr UCITS ETF 106

iShares Govt Bond 15-30yr UCITS ETF 111

iShares Index-Linked Gilts UCITS ETF 116

iShares Asia Property Yield UCITS ETF 120

iShares BRIC 50 UCITS ETF 125

iShares Core UK Gilts UCITS ETF 130

iShares Developed Markets Property Yield UCITS ETF 134

iShares Dow Jones Global Sustainability Screened UCITS ETF 143

iShares EM Infrastructure UCITS ETF 157

iShares EURO STOXX 50 ex-Financials UCITS ETF 162

iShares EURO STOXX 50 UCITS ETF 167

iShares FTSE MIB UCITS ETF EUR (Dist) 173

iShares Global Clean Energy UCITS ETF 178

iShares Global Infrastructure UCITS ETF 183

iShares Global Timber & Forestry UCITS ETF 192

iShares Global Water UCITS ETF 197

iShares J.P. Morgan $ EM Bond UCITS ETF 202

iShares JPXNikkei 400 EUR Hedged UCITS ETF (Acc) 215

iShares Listed Private Equity UCITS ETF 225

iShares MSCI AC Far East ex-Japan Small Cap UCITS ETF 230

iShares MSCI EM Islamic UCITS ETF 254

iShares MSCI EM Latin America UCITS ETF 263

iShares MSCI Europe SRI UCITS ETF 269

iShares MSCI Europe UCITS ETF EUR (Dist) 276

iSHARES II PLC

[ 2 ] i S H A R E S I I P L C I N T E R I M R E P O R T

Contents (continued)

Financial Statements (continued)

Unaudited condensed Fund primary statements, schedules of investments, schedules of material purchases and sales, and notes

(continued):

iShares MSCI Turkey UCITS ETF 288

iShares MSCI USA Dividend IQ UCITS ETF 292

iShares MSCI USA Islamic UCITS ETF 298

iShares MSCI World Islamic UCITS ETF 304

iShares STOXX Europe 50 UCITS ETF 317

iShares UK Property UCITS ETF 323

iShares US Aggregate Bond UCITS ETF 328

iShares US Property Yield UCITS ETF 367

Notes to the unaudited financial statements of the Funds 372

Other Information

Glossary 379

Supplementary Information 381

Disclaimers 409

This interim report and unaudited financial statements (the Report and Accounts) may be translated into other languages. Any such translation shall only contain the same information and have the same meaning as the English language Report and Accounts. To the extent that there is any inconsistency between the English language Report and Accounts and the Report and Accounts in another language, the English language Report and Accounts will prevail, except to the extent (and only to the extent) that it is required by law of any jurisdiction where the shares are sold, that in an action based upon disclosure in a Report and Accounts in a language other than English, the language of the Report and Accounts on which such action is based shall prevail. Any disputes as to the terms of the Report and Accounts, regardless of the language of the Report and Accounts, shall be governed by and construed in accordance with the laws of Ireland.

iSHARES II PLC

i S H A R E S I I P L C I N T E R I M R E P O R T [ 3 ]

1 All Directors are non-executive Directors. 2 The Investment Manager has appointed BlackRock Financial Management Inc. and BlackRock (Singapore) Limited, as sub-investment managers to perform certain portfolio management functions in respect of iShares $ High Yield Corp Bond UCITS ETF, iShares $ TIPS UCITS ETF, iShares $ Treasury Bond 7-10yr UCITS ETF, iShares Index-Linked Gilts UCITS ETF, iShares Core UK Gilts UCITS ETF, iShares Corp Bond Sustainability Screened 0-3yr UCITS ETF, iShares Govt Bond 3-5yr UCITS ETF, iShares Govt Bond 7-10yr UCITS ETF, iShares Govt Bond 15-30yr UCITS ETF, iShares J.P. Morgan $ EM Bond UCITS ETF and iShares US Aggregate Bond UCITS ETF.

General information

Board of Directors1 BlackRock (Singapore) Limited

Paul McNaughton (Chairman) (Irish) 20 Anson Road

Paul McGowan (Irish) #18-01

Barry ODwyer (Irish) Singapore 079912

Karen Prooth (British) Singapore

Teresa OFlynn (Irish)

Depositary

Audit Committee Members State Street Custodial Services (Ireland) Limited

Paul McGowan (Chairman) 78 Sir John Rogersons Quay

Paul McNaughton Dublin 2

Ireland

Nomination Committee Members

Paul McNaughton (Chairman) Registered office of the Company

Paul McGowan J.P. Morgan House

Barry ODwyer International Financial Services Centre Dublin 1

Manager Ireland

BlackRock Asset Management Ireland Limited

J.P. Morgan House Legal Advisors to the Company

International Financial Services Centre William Fry

Dublin 1 2 Grand Canal Square

Ireland Dublin 2

Ireland

Administrator and Registrar

State Street Fund Services (Ireland) Limited Independent Auditors

78 Sir John Rogersons Quay PricewaterhouseCoopers

Dublin 2 Chartered Accountants and Registered Auditors

Ireland One Spencer Dock

North Wall Quay

Company Secretary Dublin 1

Sanne Ireland

Fourth Floor

76 Lower Baggot Street Representative in Switzerland

Dublin 2 BlackRock Asset Management Schweiz AG

Ireland Bahnhofstrasse 39

8001 Zurich

Investment Manager, Promoter and Securities Lending Agent Switzerland

BlackRock Advisors (UK) Limited

12 Throgmorton Avenue Paying Agent

London EC2N 2DL Citibank N.A., London Branch

England Citigroup Centre

25 Canada Square

Sub-Investment Managers2 Canary Wharf

BlackRock Financial Management Inc. London E14 5LB

40 East 52nd Street England

New York

NY 10022

United States

iSHARES II PLC

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General information (continued)

Paying Agent in Switzerland Austrian Paying and Information Agent

State Street Bank International GmbH UniCredit Bank Austria AG

Munich, Zurich Branch Attn: 8398/Custody

Beethovenstrasse 19 Julius Tandler Platz 3

CH-8027 Zurich 1090 Vienna

Switzerland Austria

German Paying and Information Agent

Commerzbank AG

Theodor-Heuss-Allee 50

60486 Frankfurt am Main

Germany

The Company is duly registered with the Comisin Nacional de Mercado de Valores in Spain under number 802.

iSHARES II PLC

Background

i S H A R E S I I P L C I N T E R I M R E P O R T [ 5 ]

iShares II public limited company (the Company) is organised as an open-ended investment Company with variable capital. The Company was

incorporated in Ireland on 16 December 1999 with limited liability and segregated liability between its Funds and is organised under the laws of

Ireland as a Public Limited Company (plc) pursuant to the Companies Act 2014 and the European Communities (Undertakings for Collective

Investment in Transferable Securities) Regulations, 2011 (as amended) (the UCITS Regulations) and is regulated by the Central Bank of Ireland

(the CBI).

The term Fund shall be deemed to mean either a Fund of the Company, or if the context so requires, the Manager or its delegate acting for the

account of the relevant Fund. The term BlackRock is used to represent BlackRock Advisors (UK) Limited. The investment objectives and

policies of each Fund are set out in the prospectus and the relevant supplemental prospectus.

The Company is structured as an umbrella Fund and comprises separate Funds (Funds) of the Company. Each Fund of the Company

comprises a distinct portfolio of Investments. The Shares of each Fund may be issued with different rights, features and on different terms and

conditions to those of the other Funds. Shares of a Fund may be divided into different share classes with different dividend policies, currency

hedging and Valuation Currencies and may therefore have different fees and expenses.

On 2 November 2016, the Board of Directors of the Company notified shareholders of their intention to launch multiple share classes within most

of the existing sub-funds of the Company and also other sub-funds across the Irish iShares range and an amendment to the definition of Duties

and Charges.

While assets and liabilities that are specific to a share class within a Fund would be attributable to (and should be borne by) only that share class,

there is no segregation of liabilities between share classes as a matter of Irish law. Due to the lack of segregation of liabilities, th