This is expressed in the built-in defaults in the repository.properties file as:
You can configure the properties of alfrescoNtlm1 using the global properties file.
To switch from password-based login to NTLM-based SSO, set the following property in the alfresco-global.properties file.
This basic use of NTLM requires Alfresco to store its own copies of your MD4 password hash, which means your user ID and password must be the same in both Alfresco and your Windows domain.
For direct authentication with a Windows domain server, without the need to synchronize accounts in Alfresco and the domain, use the pass-through (passthru) subsystem type.