John Koehrer has it correct.
The practical usage of something like this is when you wish to make a really small full frame print, sometimes smaller than the format you are printing from. Another common use for this set-up is if you are duplicating film stock.
If, for arguments sake, you have a 120 negative, say a 6x6cm one and you need to do a print that comes out at 6x6cm. Then you need either a very long set of bellows on the negative carrier, or you attach what was called a top hat underneath with the lens of choice attached to that to give you the extension you require.
One such set-up we had was with an extension of about 200mm and at the end we placed an Apo Rodagon 90mm f/4 with this in place and a 35mm neg in the carrier, we could make duplicate transparencies using Kodak color print film, which gave us a duplicate colour corrected 35mm transparency developing the film in standard C41 colour negative chemistry.
This set-up was dedicated to an old Besler 4x5 enlarger. Using variations of that and using a Durst 8x10 enlarger, we sometimes made colour corrected 35mm slides from 8x10 film stock. We used to call it, unlarging
Mick.