This version is not upgradable it will simply add an extra folder to your reporting pane:
Where you can use both versions if you like. And remove the old one if you are no longer using it.
To install if you have V2 just import the management pack bundle.
If you don't have V2 please read the manual!
If you are new to the health check reports, the accompanied manual is updated and will show you how exactly you can add the extra data source.
Now for the reports in this pack: