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Sharepoint integrated SSRS is not displaying Email option in delivery extension dropdown, You should configure the below configuration from SSRS Service application from central admin.
- Go to SSRS service application and click on manage.
- Then navigate to “E – mail settings”.
- Check the “Use SMTP server” checkbox
- specify the “Outbound SMTP server” and click on “Ok” button
After completing the above configuration you are able to schedule the report using sharepoint SSRS integration mode subscription service. You can see the Email option in delivery extension dropdown.