As renrich has already mentioned, the KM was built on the basis that the war would not start until 1946. Therefore, it was nowhere near ready for hostilities in 1939. If things had kicked off in '46 the KM would theoretically have had the H class BBs and at least one carrier, and would have had some experience in using them together.
Having said that, the ships that the KM did have were not best in class by any means. Although Tirpitz kept the RN paralysed with fear for most of the war, she and Bismarck were closely based on the superdreadnoughts that would have been built had the Imperial Navy carried on building it's fleet through WW1. As such they were old technology - fortunately for the KM, many of the RNs BBs and BCs were WW1 veterans themselves, which helped to level the playing field.
The Panzerschiff, such as Graf Spee and Scheer were the development of Wolfgang Zenker's plans for 'cruiser killers' of the mid 20's, which were ultimately put on hold by the Great Depression. By the time Hitler built them, they were anachronistic. The Battle of the River Plate proved that the 8-inch gun 'Treaty Cruisers' that they were designed to destroy (i.e HMS Exeter) could give the type a hard time, and they had neither the speed or firepower to face the RN's BCs. Likewise, Scharnhorst and Gniesenau were really neither one thing or another - too small and weakly armed to fight a BB, and probably to lightly aremed to sucessfully face a BC either. So really, the KM's major fleet units were noting to write home about.
And as an aside, following renrich's comments on Germany's maritime aspirations, I would contend that the Imperial Navy's failure to defeat the Grand Fleet was more to do with leadership than technology. In fact, German ships were far tougher than their British counterparts - especially the BCs, which bore the brunt of the actual fleet combat in the North Sea. Had they have been deployed more aggressively, things may well have turned out differently. Anyone who is after a one-volume history of the Great War as fought between the RN and Imperial Navy would be well off to read Castles of Steel by Robert K. Massie. Dreadnought, by the same author, covers the dreadnought arms race prior to the war, and shows that pre-1914 Germany was indeed a country with very serious naval aspirations - so serious in fact that they played a large part in the international tension that lead to the Great War.